Farang Husband Responsibility For Wife’S Debt.

[merijn]

I’m trying to help out a friend with a possible problem.

My buddy is married to his Thai wife.

She set up a (big) business in her own name and accumulated over
time a lot of debts with several banks.

Everything is done in her own name and her farang husband was
not involved and signed nothing.

Now he is worried that in the case the business goes bad and
his wife can’t repay her debts he (farang husband) is also getting problems and
get dragged into problems (banks and/or court etc) together with his wife.

He lives here on a marriage visa extension and is afraid
that this can have also consequences for his visa extensions.

Does he have any reason to worry?

[Misterwhisper]

No, in my opinion he doesn't run into problems. Your friend's wife is the (sole?) owner of the company as the signatory to all bank debts (loans?), and thus solely responsible.

She might claim (and I believe that is why you wrote this post) that "in Thai culture the husband always has to take co-responsibility for his wife's debts" or something to that effect, but that's just a ruse.

If there are, as you say, no company-related documents that bear your friend's signature, he should be safe.

What I don't know, however, is whether there exists a prenup between your friend and his wife and how this prenup handles the assets that both partners brought into the marriage.

As per the visa extensions, I don't think her possible legal problems will have an effect on those. But it's perhaps better to talk to a lawyer about this issue.

[Mario2008]

An extension of stay based on having a Thai wife is not affected by the situation of your wife, as long as you meet the requirements:

being married not only on paper and living together as husband and wife and having the right financials.

You being hold accountable for your wife's debts is a possibility if you do not have a prenup. Prenups are meant to avoid such situations, as a lot of the property becomes joined property.

Big question is if she had the company before the marriage or she started it after the marriage. However, that the bank didn't him to sign any loan contracts also is in his favour.

[impulse]

Did his wife sign any documents for him, without his knowledge?

Seems I've read about that happening once or twice.

[reiltin]

Advise caution who knows what she may have done or forged...sometimes the cabs passenger gets blamed for the accident if the driver shows his heels.

[CharlieH]

Not forgetting that orobably any house he lives in will be in her name and may have been used as security, also if the relationship ends so does his visa.

[BEVUP]

Sounds like they were married at the time

With several banks Ok possible scenario

1 - Hocked house or land only

2 - Maybe member of Rice Ag Bank & hocked land / crop as well or I have also seen the MIL give the rights of her land to siblings

3 - Also otherfamily members property

Seen this from experience - they just keep shufling around (hence why the post WHY DO THEY KEEP CHANGING PHONE NUMBERS )

MIL hocked only piece of land with the village house on it so BIL could buy ute to start buisness at open markets ALL FELL THROUGH

[soi41]

Sounds like they were married at the time

With several banks Ok possible scenario

1 - Hocked house or land only

2 - Maybe member of Rice Ag Bank & hocked land / crop as well or I have also seen the MIL give the rights of her land to siblings

3 - Also otherfamily members property

Seen this from experience - they just keep shufling around (hence why the post WHY DO THEY KEEP CHANGING PHONE NUMBERS )

MIL hocked only piece of land with the village house on it so BIL could buy ute to start buisness at open markets ALL FELL THROUGH

Clear as mud !!

[TommoPhysicist]

Court can take any property, vehicle or money in bank accounts to pay her debts, then if no enough they do the same for your joint stuff.

So they take by working down this little list

1) Her sin suan tua (her personal money, what she had before marriage)

2) Sin somros (joint money, anything purchased or earned during marriage))

Not enough seized ........ can't do any of the above for about 10 years.

This only applies to debt incurred after the marriage, what she owes before, they can't take from the husband.

Edited March 11, 2013 by TommoPhysicist

[davejones]

Sounds like they were married at the time

With several banks Ok possible scenario

1 - Hocked house or land only

2 - Maybe member of Rice Ag Bank & hocked land / crop as well or I have also seen the MIL give the rights of her land to siblings

3 - Also otherfamily members property

Seen this from experience - they just keep shufling around (hence why the post WHY DO THEY KEEP CHANGING PHONE NUMBERS )

MIL hocked only piece of land with the village house on it so BIL could buy ute to start buisness at open markets ALL FELL THROUGH

Clear as mud !!

I was thoroughly confused as well. Can some translate to plain English?

[fletchsmile]

Quite a few factors in play

First question to answer is the form of the business. If it is a limited company, then the debts belong to the company not the individuals. If not a limited liability company then the individuals in the company are likely liable for debts.

Second question, if a limited company and any of them have given personal guarantees for the debt in addition to the company taking on the debt, then the individuals giving the personal guarantee are liable for it.

Third question is who are the individuals in the company. If the husband is not involved in the company and not given any personal guarantees then the debts would come from: the company, the wife's personal assets, the wife's share of common assets (jointly owned assets).

If the wife becomes insolvent or incurs debts she is liable for, that exceed here own personal assets (called sin suan tua in Thai) plus her share of joint assets (called sin somros in Thai) then the husband can apply to the court for an order whereby he becomes the sole manager of the joint assets. i.e he can apply to the court and ensure that his share of joint assets are protected

This shouldn't have any direct impact on his visa extension. However, if he is relying on 400k in a bank account and it falls below this as a result of all that's going on, he obviously will have a problem meeting the 400k amount. Similarly if his income drops as a result for some reason and he is below the income threshold then it will also impact. If he has 400k in an account in his own name she has no access to he should be safe. On a practical note, as immigration require the wife to attend on visa extensions if she is imprisoned he'll also have problems.

Fletch

[merijn]

Just a little more information i received from him.

They don't have any joined accounts and he has personal accounts for his visa requirements and living.

He also understands that he can lose his house as it is in her name and accepts this.

He is not involved in any way in her business what i understand is a limited company and signed nothing for this.

And also he don't believes that she forced any signatures and i have to agree with him as i know her quite good.

[davejones]

Advise caution who knows what she may have done or forged...sometimes the cabs passenger gets blamed for the accident if the driver shows his heels.

You don't become liable for debts because someone forged your signature.

[Traxster]

Catch the first train out of town !!

[yoshiwara]

Just a little more information i received from him.

They don't have any joined accounts and he has personal accounts for his visa requirements and living.

He also understands that he can lose his house as it is in her name and accepts this.

He is not involved in any way in her business what i understand is a limited company and signed nothing for this.

And also he don't believes that she forced any signatures and i have to agree with him as i know her quite good.

The house was the business.

[merijn]

Just a little more information i received from him.

They don't have any joined accounts and he has personal accounts for his visa requirements and living.

He also understands that he can lose his house as it is in her name and accepts this.

He is not involved in any way in her business what i understand is a limited company and signed nothing for this.

And also he don't believes that she forced any signatures and i have to agree with him as i know her quite good.

The house was the business.

I don;t know if this was sarcastic meant but no the house is not their business.

Edited March 12, 2013 by merijn

[nevets]

Yes its all well and good saying , my wife is clever and has her own buisiness / money, but when it all goes tits up and you have lost your house and retirment plan then its no joke , i feel for this poor man.

[davejones]

It amazes me that anyone would risk their house on a business venture. And also amazes me how someone can lose so much money on a business. Surely they should cut their loses well before their house is lost as well.