Discharging Debts in the LOS

[watgate]

My GF has finished paying off the loan she assumed when her husband died several years ago. I think it had to do with a loan taken out when she was living with her husband in Isan. My question to all the knowledgeable posters who are well versed in Thai law is could she have just walked away from the loan and stopped paying it? Is their any ways in Thailand to have a debt discharged? In talking to her, she makes it sound like had she stopped making payments to the bank to pay off the loan, she would have been hauled off by the Police and thrown in jail. Is this scenario true? I am wondering if their are any means civilly to have a debt dischaged by the Courts through bankruptcy proceedings in Thailand? It is too late for her now because she finally paid off the loan but it would be nice to know for future reference.I don't know if the loan was in both of their names initially, and would this have had any relevancy going forward after her husband died in terms of responsibility for paying off the debt?

[tomwct]

Depends! If she was legally married to her husband at the time the loan was taken out, she would be responsible for 50% of the balance! If she signed the loan agreement, then she would be responsible for 100%! If she had gone to the creditor, she probably could have negotiated a lower payoff because most lenders would want the loan paid off and finished. My first wife had 8 credit cards before we were married! Of course, she could not pay that many payments under her government salary, so I personally went to each

bank and negotiated a lower payoff, approximately 30-35% discount! I also had each bank sign a letter in Thai and English, that they

would not open those accounts again nor loan any further funds to her in the future without my signature, otherwise, I would not pay any further debts! No problem with the banks. They just wanted the credit cards paid off!

[elektrified]

Depends! If she was legally married to her husband at the time the loan was taken out, she would be responsible for 50% of the balance! If she signed the loan agreement, then she would be responsible for 100%! If she had gone to the creditor, she probably could have negotiated a lower payoff because most lenders would want the loan paid off and finished. My first wife had 8 credit cards before we were married! Of course, she could not pay that many payments under her government salary, so I personally went to each

bank and negotiated a lower payoff, approximately 30-35% discount! I also had each bank sign a letter in Thai and English, that they

would not open those accounts again nor loan any further funds to her in the future without my signature, otherwise, I would not pay any further debts! No problem with the banks. They just wanted the credit cards paid off!

I don't understand the bit about the banks signing letters in English???

[bangmai]

The public has access to the National Credit Bureau information in LOS. I can even request a report in English through the Krungsri website, I was even wondering if they would have a score for me, with multiple bank accounts in LOS. It is the best way I know of to check for identity theft, errors by banks and creditors, and the reality of falling into debt.