Slowdown sees rise in personal, business bankruptcies: Thailand

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BANKRUPTCY
Slowdown sees rise in personal, business bankruptcies
Somluck Srimalee
The Nation
Khon Kaen

BANGKOK: -- Bankruptcy cases, both personal and commercial, have shown signs of rising due to the economic slowdown this year.

However, the cases will take time after the economy saw slight growth or dropped about one or two years.Bankruptcies increase when people or businesses face a drop in their income to the point that they can no longer pay back creditors, Att Attanont, deputy director-general of the Legal Execution Department, said last week.

When a bankruptcy case enters the court process, it will take at least one year before the case will end and the Legal Execution Department has to open bidding to sell the debtor's assets and pay the proceeds to its creditors.

As of October, the department had 264,232 cases with assets for sale valued at up to Bt3.47 trillion.

In the last fiscal year ended September, the department succeeded in settling 25,717 cases by mediating between debtors and creditors and selling assets for Bt33.14 billion out of an estimated value of Bt33.23 billion.

For this fiscal year, the department targets to clear at least 150,000 cases. In the first two months, it succeeded in clearing 5,026 cases with an estimated value of Bt6.97 billion. It disposed of assets for Bt7.07 billion.

"We have tried to speed up clearing most of the cases in the department by setting up a system that accelerates the sale of assets by proposing a new sales rule to the Justice Ministry early this year that is now under consideration," Att said.

The new rule would cut the sales period from an average of six months currently to only three months. That would help debtors clear their debt and return to doing business again. Creditors also will get money to provide new loans for new business.

However, after the government dissolved the House on December 9, the new rule has to wait for the new government to take it up again.

Meanwhile, the department has tried to speed up asset sales by opening bidding every week and also negotiating with both creditors and debtors to solve their problems.

"We help drive the economy because when bankruptcy assets can be resolved, that will free up assets to do business. We have organised our roadshow to promote the assets for sale. This is a part of speeding up our sales process," he said.


-- The Nation 2013-12-23

[Nibbles48]

I have the distinct feeling that the increase in bankruptcies is not actually linked to any slowdown.

In fact it is more probably linked to the burgeoning debt crisis that was instigated by Thaksin's populist policies.

These policies are now coming home to roost, and it will mushroom in the coming 2 years.

[Yunla]

I have the distinct feeling that the increase in bankruptcies is not actually linked to any slowdown.

In fact it is more probably linked to the burgeoning debt crisis that was instigated by Thaksin's populist policies.

These policies are now coming home to roost, and it will mushroom in the coming 2 years.

And those particular mushrooms are totally legal to pick.

[Ozybear]

But Nibbles, do you think it had anything to do with people borrowing money they could not pay back? Nothing to do with politics.

[Gsxrnz]

They cleared 5,000 cases in 2 months and aim to clear 145,000 in the remaining 10 months to achieve a target of 150,000 for the year.

Yeah, that will work.

[Robby nz]

But Nibbles, do you think it had anything to do with people borrowing money they could not pay back? Nothing to do with politics.

True but they have been encouraged to borrow money, IE, new car scheme, housing loans, credit cards for farmers and taxi drivers, so it most probably is linked to politics.

But anyway that's got nothing to do with it, its all the fault of the protesters.

[soi41]

I have the distinct feeling that the increase in bankruptcies is not actually linked to any slowdown.

In fact it is more probably linked to the burgeoning debt crisis that was instigated by Thaksin's populist policies.

These policies are now coming home to roost, and it will mushroom in the coming 2 years.

Now we are just waiting for your explanation on how the Ukraine crisis and the war in South Sudan can be blamed on the Shinawatra family!!

[LuckyLew]

Low interest loans and tax credits that allow people to borrow more than the can repay

Geniuses running the show .... setting people up for failure ... great plans

[Robby nz]

Wondering how they are going to get on with dealing with the Government bankruptcie them being a Government department and all ?

[Jay Sata]

Been here before.

!997

The Asia economic collapse was the result of overbuilding in real estate, and originated in Thailand, spreading to other countries whose big financial players had invested in Thailand, especially Japanese banks.

Let's look at wiki

Thailand's economy developed into an economic bubble fueled by hot money. More and more was required as the size of the bubble grew. The same type of situation happened in Malaysia, and Indonesia, which had the added complication of what was called "crony capitalism".^[9] The short-term capital flow was expensive and often highly conditioned for quick profit. Development money went in a largely uncontrolled manner to certain people only, not particularly the best suited or most efficient, but those closest to the centers of power

Now add to that scenario the very unstable political situation at the moment and a potential more unstable situation in the future and you can see where a wise investor and his money would go.

[andygunther]

I have the distinct feeling that the increase in bankruptcies is not actually linked to any slowdown.

In fact it is more probably linked to the burgeoning debt crisis that was instigated by Thaksin's populist policies.

These policies are now coming home to roost, and it will mushroom in the coming 2 years.

And those particular mushrooms are totally legal to pick.

Be careful ... you might get to enjoy 15 years behind bars

[noitom]

Legal "execution" department. Very nice name that the Thais dreamed up here.

[billd766]

I have the distinct feeling that the increase in bankruptcies is not actually linked to any slowdown.

In fact it is more probably linked to the burgeoning debt crisis that was instigated by Thaksin's populist policies.

These policies are now coming home to roost, and it will mushroom in the coming 2 years.

Now we are just waiting for your explanation on how the Ukraine crisis and the war in South Sudan can be blamed on the Shinawatra family!!

Didn't Yingluck take a trip to the Ukraine this year? She jets about so much I can't keep up where she has been.

Definitely not S Sudan though. No shopping malls.

[tingtongteesood]

I have the distinct feeling that the increase in bankruptcies is not actually linked to any slowdown.

In fact it is more probably linked to the burgeoning debt crisis that was instigated by Thaksin's populist policies.

These policies are now coming home to roost, and it will mushroom in the coming 2 years.

Now we are just waiting for your explanation on how the Ukraine crisis and the war in South Sudan can be blamed on the Shinawatra family!!

Pointless drivel as ever from soi41. Why don't you try engaging a few brain cells and try to refute the argument with a well thought out and researched response for once....? Or maybe you just aren't capable of that. Come on, devastate us with your amazing understanding of the situation and grace us with the true facts of the matter. I dare you....No ? Thought not. Back under your bridge troll !!

[tingtongteesood]

Been here before.

!997

The Asia economic collapse was the result of overbuilding in real estate, and originated in Thailand, spreading to other countries whose big financial players had invested in Thailand, especially Japanese banks.

Let's look at wiki

Thailand's economy developed into an economic bubble fueled by hot money. More and more was required as the size of the bubble grew. The same type of situation happened in Malaysia, and Indonesia, which had the added complication of what was called "crony capitalism".^[9] The short-term capital flow was expensive and often highly conditioned for quick profit. Development money went in a largely uncontrolled manner to certain people only, not particularly the best suited or most efficient, but those closest to the centers of power

Now add to that scenario the very unstable political situation at the moment and a potential more unstable situation in the future and you can see where a wise investor and his money would go.

Look soi41, this is how you should do it, a well thought out and rational post from someone who knows what he is talking about.....