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What are the legal ramifications if defaulting on a Loan?

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Hi.

 

Hoping for some general information.

 

The situation.

 

Local Thai adult.

No assets.

Takes out a loan to purchase a limited edition motorcycle.

Now struggling with repayments.

Currently principal plus interest owing.

Currently at around 380,000b

I'd estimate the motorcycle is now worth 150,000

 

What are his options?

Is there such a thing as declaring bankrupt?

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  • Stay away from him. He will be coming your way real soon.  Are you strong enough to say no ? Good luck.  

  • Be carful as the true amount of this persons debt, may well be a lot more than the motor bike payments. People tell awful lies when it comes to money. Don't be a sucker. Stay out o

  • hotandsticky
    hotandsticky

    No idea why someone gave you a thumbs down

It would depend where he got the loan from.

 

It doesn't sound like he got it from a reputable place, with the now difference between money owed and value of the bike. 

  • Popular Post

Stay away from him.

He will be coming your way real soon. 

Are you strong enough to say no ?

Good luck.

 

1 hour ago, rockyysdt said:

What are his options?

Is there such a thing as declaring bankrupt?

Personal bankruptcy requires debts in excess of B1m.

He should negotiate with the lender initially, maybe his repayments can be reduced and the term of the loan extended but if he is a few months behind with repayments already, the lender is unlikely to be cooperative.

 

Who provided the outstanding debt information, has he already been speaking to the lender to have that information to hand?

51 minutes ago, youreavinalaff said:

It doesn't sound like he got it from a reputable place, with the now difference between money owed and value of the bike. 

Nothing in the OP suggests that.

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1 hour ago, rockyysdt said:

Hi.

 

Hoping for some general information.

 

The situation.

 

Local Thai 

 

What are his options?

Is there such a thing as declaring bankrupt?

Sex change ?

Be carful as the true amount of this persons debt,

may well be a lot more than the motor bike payments.

People tell awful lies when it comes to money.

Don't be a sucker.

Stay out of other peoples debts in Thailand.

 

Ps If a close family member, help if you want to, but again be careful

A loan is looked at like a gift, even if you think differently.

 

 

2 hours ago, youreavinalaff said:

It would depend where he got the loan from.

 

It doesn't sound like he got it from a reputable place, with the now difference between money owed and value of the bike. 

 

 

No idea why someone gave you a thumbs down

1 hour ago, Liverpool Lou said:

Nothing in the OP suggests that.

Only to those without an ability to think.

1 minute ago, hotandsticky said:

 

 

No idea why someone gave you a thumbs down

Me neither.

 

Oh well. Never mind. 😅😅😅

1 hour ago, Liverpool Lou said:

Nothing in the OP suggests that.

 

Except for the difference between the debt and the bike value.

 

I can guarantee that the bike was never worth over 380,000 Baht.

 

 

Check the interest figure. Legally they can't charge more than 15%? p.a.

1 minute ago, youreavinalaff said:

Only to those without an ability to think.

 

 

Reading between the lines (or even the blindingly obvious) is not a gift that everyone possesses.

22 minutes ago, quake said:

A loan is looked at like a gift, even if you think differently.

 

 

That's a bit of a generalisation.

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The best thing to do is, DO not get involved in anyone elses problems money or otherwise, or their problems will become yours. 

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2 minutes ago, howerde said:

The best thing to do is, DO not get involved in anyone elses problems money or otherwise, or their problems will become yours. 

 

And you couldn't tell me this before I had to pay my girlfriend's mother's rent?

44 minutes ago, youreavinalaff said:

That's a bit of a generalisation.

 

Nah.

Just the truth when it comes to money in Thailand.

1 minute ago, quake said:

 

Nah.

Just the truth when it comes to money in Thailand.

No. It's a generalisation. 

Just now, youreavinalaff said:

No. It's a generalisation. 

 

If you say so. Big Yawn. :coffee1:

 

53 minutes ago, youreavinalaff said:

That's a bit of a generalisation.

 

But often true in Thailand.

Total non payment of loans is very common in Thiland , and the rational is that 'I believe the money you gave me was a gift, not assocated with a loan. 

 

My Thai son was appraoched by a Thai boy in his uni class asking for a 5,000Baht loan. My son discussed it with me saying 'he's a nice guy, a good friend and he helps me and others a bit with some assignments, and I think he really needs the money. We discussed payback over 7 years'.

 

At about 9 years, with no repayments, and debtor now working in a good well paying job, driving expensive car, son politely asked 'when are you going to start making repayments on the 5,000Baht I loaned you?' Response 'If you really expect me to make any repayments you're not a nice friend, I'm not going to make any repayments ever and I'm not talking to you ever again. 

Surrender the motorcycle, come to an agreement on restructure the balance payments.

 

If it's the shops own finance, they won't give a realistic value on returning the bike and the balance will probably be painful.

 

The best answer really, go get a Job or extra work and keep paying it.All the interest would have been added up front, so had stuffed either way.Atlesst he has transport if tries to keep paying it, even if he asks them them to lower payments e XX tend the term while he gets over the bad patch.

 

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20 minutes ago, quake said:

 

If you say so. Big Yawn. :coffee1:

 

I know so.

 

You don't know the outcome of every loan in Thailand so you can't claim your opinion to be true.

 

I know loans that have not been considered a gift, so can prove your opinion to be a generalisation. It's that simple.

9 minutes ago, scorecard said:

 

But often true in Thailand.

Total non payment of loans is very common in Thiland , and the rational is that 'I believe the money you gave me was a gift, not assocated with a loan. 

 

My Thai son was appraoched by a Thai boy in his uni class asking for a 5,000Baht loan. My son discussed it with me saying 'he's a nice guy, a good friend and he helps me and others a bit with some assignments, and I think he really needs the money. We discussed payback over 7 years'.

 

At about 9 years, with no repayments, and debtor now working in a good well paying job, driving expensive car, son politely asked 'when are you going to start making repayments on the 5,000Baht I loaned you?' Response 'If you really expect me to make any repayments you're not a nice friend, I'm not going to make any repayments ever and I'm not talking to you ever again. 

I've not said it doesn't happen. I just pointed a comment was a generalisation.

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14 hours ago, quake said:

Be careful as the true amount of this persons debt,

 

I have seen the loan details from a bank statement.

It indicated the total currently owed and included the Thai in question.

For privacy I won't disclose the bank, but it's a Thai Cooperative.

 

Having said that, who knows how much is hidden.

 

The 2025 version of this bike currently retails for 350,000b.

The amount outstanding is higher, probably representing interest.

The purchase was a thoughtless act during a time living with depression.

There's now regret.

 

If he surrenders the bike, it's possible it will be liquidated at auction for pennies leading to a greater loss.

As the bikes title has a caveat he can't sell it himself.

 

I thought he could try to deal with the Motorcycle Dealer who could get a good commission on the sale, and realise a substantial amount to go towards the loan. 

 

If bankruptcy is not possible, would it be jail time?

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25 minutes ago, rockyysdt said:

If bankruptcy is not possible, would it be jail time?

No jail time unless the lender can prove that the borrower submitted fraudulent income documents in order to get the loan approved. This would then be a criminal court case.

 

However, if the borrower submitted proper income documents etc, then it's just a civil court case. The likely civil court outcome would be that both parties agree to a realistic loan repayment plan. The bike will be repossessed and auctioned, and the borrower will get a negative record in the Thai Credit Bureau, preventing him from borrowing again in the future until this debt is satisfied.

3 hours ago, rockyysdt said:

I have seen the loan details from a bank statement.

It indicated the total currently owed and included the Thai in question.

For privacy I won't disclose the bank, but it's a Thai Cooperative.

 

Having said that, who knows how much is hidden.

 

The 2025 version of this bike currently retails for 350,000b.

The amount outstanding is higher, probably representing interest.

The purchase was a thoughtless act during a time living with depression.

There's now regret.

 

If he surrenders the bike, it's possible it will be liquidated at auction for pennies leading to a greater loss.

As the bikes title has a caveat he can't sell it himself.

 

I thought he could try to deal with the Motorcycle Dealer who could get a good commission on the sale, and realise a substantial amount to go towards the loan. 

 

If bankruptcy is not possible, would it be jail time?

 

He will not go to jail.

Sounds like, he needs to just take the financial hit and pay the debt off over the next few years.

We all have to take responsibility for our actions or inactions in life. let him get on with it.

Try and distance yourself from him.

Unless your happy to help him, but it will be unlikely you will get any money back if you do.

Good luck. 

 

 

 

 

20 hours ago, hotandsticky said:

 

 

No idea why someone gave you a thumbs down

Perhaps because he posted speculative nonsense about the lender?

20 hours ago, hotandsticky said:

I can guarantee that the bike was never worth over 380,000 Baht.

How can you "guarantee" that without knowing anything about the bike? 

Can you "guarantee" the OP's current valuation?

What was the amount he borrowed/financed, can you guarantee that figure also?

Over what term was the loan taken out?  

19 hours ago, quake said:
20 hours ago, youreavinalaff said:

That's a bit of a generalisation.

 

Nah.

Just the truth when it comes to money in Thailand.

Nonsense, it was a huge over-generalisation verging on  just another Thai-bash.

Yes a debt is a civil matter, he'd never go to jail, unless a crime like fraud was committed.

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