Bankruptcy Protection In Thailand?

[dddave]

Does the Thai legal system offer Bankruptcy protection to individuals similar to western countries?

A lady I know, 33 years old, co-signed a B50K loan for a friend five years ago. She had a well paying job at an electronics plant at the time. My friend lost her job the following year and moved to Bangkok. The person she co-signed the loan for had been up to date paying it back to that point but my friend subsequently lost track of the borrower.

Several days ago, she received a legal notice from the lender, sent to her family home upcountry, demanding payment of principal and interest: B70K. It appears that the borrower ceased making payments and has disappeared.

My friend is very frightened.

She owns no house or property, no car, nothing of any real value and she makes about B8000 a month selling handbags, barely enough to cover living expenses and no, she is not a "working" girl. There is no way she can ever make enough income to ever touch the principal much less pay off the increasing interest.

Is there any legal way for her to get out from under this situation aside from finding the original borrower and somehow forcing them to pay.

What legal risks does she face? Can an individual be imprisoned for unpaid debt in Thailand?

[clockworkorange]

Thailand does indeed have well defined bankruptcy laws, and you don't go to jail for owing money. But bear in mind that not all creditors will give in just because your friend declares herself bankrupt. It depends on whom she owes money to.

http://www.tginfo.com/Publications/Article...aw%20Update.htm

[Maizefarmer]

The best I can see in this situation (and I am not a legal expert - my commnets are based on my experience of others in the past in a similar position) is get an agreement with the creditor based on an honest financial statement - and done through a solicitor/lawyer.

That agreement should seek:

- firstly, a final settlement figure

- and offer to pay (based of course on the debtors honest financial status).

Key to that setllment figure and agrement to pay should be a clause along the lines that so long as the debtor fulfills the repayment plan, interest will not continue to be added. It;s not important what the weekly or monthly (or whatever...) figure is. If all she can curreently afford is Baht 500 or 1000, then so be it - that is what needs to be stated.

It should be made clear that if the creditor declines the offer, application to a court will be made by the debtor to have the agreement enforced. So long as that statement is honest (i.e. the debtor is not concealing assets or ability to pay) the chances are the court will order the repayment plan to be made legaly binding to both parties, or offer the creditor the option to proceed with bankruptcy proceedings. If the creditor proceeds, and so long as the financial status was honest, they may well stand to gain nothing in return i.e. brankruptcy will be a spiteful response - then so be it - at which point the debtor can then seek protection - and yes, as clockworkorange has said, Thailand has well defined laws that cover this matter, which, as he has also rightly noted, provide creditors with no option to seek incarceration of a debtor - that will not happen so she can relax on that point. But make sure that the fincial statement is honest - because found to be false in a court of law could be taken as perjury, and that is an imprisonable offence.

In short, from a legal perspective she can only pay what she can pay, and if there are no assets there no assets - it really is that simple. Sadly though, many creditors in Thailand resort to "unlawful" means and harrassment to seek repayment. That's another issue and quite frankly how she handles that wil be up to her - but it should be reported.

Whatever she does, legal advise has to be high on the list and any communication (any communication at all) should be through an appointed solicitor.

All the best

[britmaveric]

Well they will garnish wages that I am sure of if she pays taxes. Thai mate of mine is in the same bind, so I know this first hand.

[swenson55]

time to become a working girl , or

you pay it off is what girl is angling for!

[parryhandy]

Why on earth do people co sign for loans ? Just cannot see any upside to it.

[dddave]

Thank you Maizfarmer and CWOrange for your detailed responses, you provided what I needed to know. I will encourage her to speak to a Thai attorney and get a full explanation of her rights.

[bootsie]

and who is going to pay for this attorney?

she has the right to pay like she promised. is she a grown woman or a little girl?

like obama says this is teachable moment! and he doesnt mean look for a farang in shining armour to bail her out....or maybe he does mean that.

theres conseqquences to stupid behavior, at least give her a good spanking!

[dr_Pat_Pong]

and who is going to pay for this attorney?

she has the right to pay like she promised. is she a grown woman or a little girl?

like obama says this is teachable moment! and he doesnt mean look for a farang in shining armour to bail her out....or maybe he does mean that.

theres conseqquences to stupid behavior, at least give her a good spanking!

Instead of being a <deleted> Blizzard, why don't you take some English lessons ? Two Q's in consequences is a bit lower primary school. ( or are you retarded ? )

[madam74]

Im a financal consultant with AMEX, are you recommending people not live up to their obligations. It is you and everyone else who pays for deadbeats.

[dr_Pat_Pong]

Im a financal consultant with AMEX, are you recommending people not live up to their obligations. It is you and everyone else who pays for deadbeats.

Speaking of deadbeat's, pass on my regards to that nutter Blizzard.

[dddave]

Im a financal consultant with AMEX, are you recommending people not live up to their obligations. It is you and everyone else who pays for deadbeats.

'Tell you what; when banking and lending institutions ("Bail me out!, Bail me out!") start fulfilling their obligations to anyone other than top management (Hello!: Lehman Bros., AIG, RBS, ect.) then we can discuss individual responsibility.