Bankruptcy in Thailand

[Oishii]

Hi All,

Couldn't find an appropriate place for this to be, so I'm sorry if I've started a new thread when an old thread would have done.

My Thai wife has a close friend/colleague who has gotten herself into a lot of debt and she is scared that she will go to prison if made bankrupt. She works for the local government and the government lawyers have taken up the case for some of her creditors. She owes approximately 3.5 million Baht to them. She also has a car, which she hasn't made payments on for 6 months and the finance company for that call her several times a day asking for money.

Here 4 weekly salary is 20,000. She pays 1,000 in tax and the government lawyers are already taking 18,000 from that to help to recover her debt. The lawyers know that she has a "farang" husband, (not wealthy and not in Thailand right now) and have told her that they want another 50,000 per month from her otherwise they will make her bankrupt.

The main reason for her debts have been ill health. Her first husband died of cancer 10 years ago and she spent the savings they had paying for his cancer treatment. Government officers and their families are entitled to free healthcare, but the government would only pay for basic treatment, but he needed chemotherapy.

5 years ago, she was involved in a major car accident. She was in a coma for 4 weeks and required major surgery to keep her alive. No insurance money forthcoming from either insurance company. The drivers of both vehicles died at the scene.

4 years ago she had breast cancer and needed to have chemo', which the government refused to pay for, so she got a loan to pay for this. She ended up requiring 2 lots of surgery, which the government did pay for.

She knows that by her being declared bankrupt, she will lose her job, (Bankrupts cant work as government officers), but she has told my wife that she is scared of going to prison, (who wouldn't be?) for her debt.

I have 2 questions for those who may know the answers:

1, Is it legal that the government lawyers can take almost all of her 4 weekly pay and leave her with just 1,000 to live on? (She gets a lot of assistance from friends and family with her living costs).

2, If she is declared bankrupt, is it possible that she will go to prison?

Thank you all in advance for your answers.

[h90]

There are so many people bankrupt in Thailand that I can't believe there is enough place in jail.

But they would take the car and I think part of the salary.

And if she guaranteed with her house than this is also gone.

I think she'll get blacklisted for credit cards. But I think nothing worse happens.

(But I am no specialists....so don't trust in what I think, maybe someone here knows more).

[CharlieH]

Go talk to another Lawyer, get another opinion and perspective, probably free for an informal chat about the legalities and options.

[JaiLai]

Wow - if all her stories are true that's some serious bad luck.

I'm no expert but I'd be surprised if she were given a prison sentence, I'd imagine everything she owns will get taken though.

I don't see the relevance of the farang husband unless he's garunteed a loan.

As suggested, get a second opinion.

[kikoman]

One needs to get a good lawyer with a background in bankruptcy issues, I find the part about her medical expensive questionable, as the government socialized medicine covers all types of illnesses, unless she or her farang husband did not care for the available almost free Thai medical care and opted for a more expensive hospital care.

I have met many people over the years with debt problems and know of none going to prison, they lose their property, cars, etc.yes, Prison I doubt it

cheers:

[Oishii]

One needs to get a good lawyer with a background in bankruptcy issues, I find the part about her medical expensive questionable, as the government socialized medicine covers all types of illnesses, unless she or her farang husband did not care for the available almost free Thai medical care and opted for a more expensive hospital care.

I have met many people over the years with debt problems and know of none going to prison, they lose their property, cars, etc.yes, Prison I doubt it

cheers:

My wife is a lawyer, but does not know the law regarding this financial stuff. She deals with legal stuff to do with ground water licences and projects.

The Farang husband didn't come along until she was already in debt. As typical Thai's, the government lawyers believe that all farang are wealthy and that he will pay the extra 50,000 per month that they want for her and pay her living expenses.

The medical care for her Thai husband had cancer of the stomach and the chemo' was costing her 6,000 baht per day. Same for her, the government scheme pays for basic care and not for advanced treatment.

[oxo1947]

About 13,000 Thais go bankrupt each year----- there is a link that will explain about it--

https://www.ideals.illinois.edu/handle/2142/42245

[Cheapcharly]

If you file fraudulent bankrupt, yes you go to jail.

But view the circumstances, why you want finish in jail?

Jail are for people who are physically dangerous. This is why go-go don't go to jail because they scam farangs everyday and not hurt them.

Drugs, guns dealer will go to jail because they hurt physically people.

Nice scamers and the rest just get a fine and released unless the steal size is to big (like madhof)

[thaibreaker]

She has obviously had her share of bad fortune, but nothing that she has done is of criminal act, so prison is out of the question. Dont worry about that.

In Thailand, as in other countries, the companies loaning her the money she had to spend on treatment, have their own share of resposibility. If she has not kept them in the dark about job situasion, welth etc, she will be fine.

She will lose her car and house, or valuables of reasonable size, of course, but thats it, IF they decide bankrupcy. Otherwise, they can very well settle with a monthly payment that both parties can live with.

Wheather or not it is legal to take as much from her salary as you describe, it certainly isn`t in our countries in Europe etc. I will be surprised if they can do what they want here. Get a new lawyer, maybe they can settle this.

[slipperylobster]

Here is something I stumbled across....hope it is accurate. Says no less than 10 Million must be owed

http://www.pricesanond.com/knowledge/overview-of-thai-bankruptcy-reorganization-law.php

Anyways, gives me a better idea what happens.

[realenglish1]

Tell your wife to get a lawyer but she will not go to prison

[ericjt]

Lots of opinions, and not much else. If you don't know and can't help, why not save your post for some other thread? (Maybe I'm getting old and grouchy. Had to get that off my chest.)

A google search for "personal bankruptcy thailand" turns up several links that seem to answer a lot of the OP's questions. Jail? Probably not, as long as there is no fraud or concealment of assets. Here are the links:

http://www.thailawforum.com/articles/kanok-jullamon.html

http://juslaws.com/index.php?option=com_content&view=article&id=144&Itemid=217

http://absolutelythailand.blogspot.com/2008/01/bankruptcy-procedure-in-thailand.html

Thai bankrupcty law seems harsh and kind of unfair to individual debtors in OP's position, but these links will get OP started. Like I said, jail doesn't seem like part of the system. I'd worry more about losing my job as a govt worker. And the time it takes before you are declared "bankrupt" and relieved of your debts.

Hope these links help you get started. Maybe you can find your way to an experienced Thai bankrupcty attorney who knows more about how the system actually works. And maybe he/she can make some suggestions to help you better your position.

Good luck.

[kikoman]

I know of one of our family members that needs dialysis to remain alive, the treatment is almost daily and expensive , he is a rice farmer and the government furnishes all his treatment for free.

Maybe as a Thai Lawyer, have more medical options available to them and chose another treatment facility,, at their own expense.

Cheers:

[Oishii]

I know of one of our family members that needs dialysis to remain alive, the treatment is almost daily and expensive , he is a rice farmer and the government furnishes all his treatment for free.

Maybe as a Thai Lawyer, have more medical options available to them and chose another treatment facility,, at their own expense.

Cheers:

Thank you all for your answers. All will be helpful.

Government officers and their families receive certain levels of free healthcare. This poor lady and her Thai husband were both lawyers, both wealthy. She works for local government, as my wife does. She has spent all of their savings, sold the 2 Mercedes and the Honda that they owned and the luxury house. When her husband had stomach cancer, she wanted the best level of treatment possible, as I think we all would, but the government wouldn't pay for that level of treatment. Then she was involved in the motor accident, where both drivers were killed. The government told her that as it was a motor accident, she must claim from the insurance companies for her medical costs, but apparently neither driver had insurance at a level that she could make a claim to pay for her hospital fees. Therefore she borrowed money to pay for that too. Then she got breast cancer. She could have had the breast removed, which would have been paid for by government funds, but she decided to try chemo to rid herself of the cancer. She had to pay for this herself, but it didn't work. But even then, elected not to have the breast removed, but to have the cancer taken out and the breast tissue rebuilt, again, at her own cost. So, much bad luck, but also wanting the best for herself to overcome her unfortunate situations. It just goes to show how you can be at the top of the game one moment and fall to the bottom of the heap the next.

Her new farang husband only knows part of the story here and even though he sends her money, has no idea about the 50,000 extra per month that the lawyers acting for the creditors want. Another sucker entering the Thai Hall of Mirrors.

Again, thank you all for you answers. I'm sure my wife and I will be able to work with her and help her through her current problems, along with the help of a lawyer experienced in bankruptcy..