Personal Debt To Thai Bank

[peterpop]

My wife has dropped the bombshell, after 9 years of marriage, that she has an old debt to a Thai Bank that she has not paid off.  This debt was not too large and it is about 12 years old.  This has huge implications for the security of our property that is in her name should the bank discover she is now solvent and owns a house.  I am happy to pay off the original debt but with the accrued interest I may have a problem.  I am sure this is a well trodden path and I would be grateful for sensible advice

[JAS21]

Normally debts of this type are not collectable after 10 years ... it just depends when the ten years started.  The debt will have accumulated a lot of interest.

 

You could get a solicitor to make inquiries about the state of the debt. Can your wife put her name in another house. Not a good idea if she has a bank account either.  After 10 years the bank will probably have sold the debt and you will get a 'collection' letter now and again.   

[blackcab]

Loans are statute barred after 10 years (Civil and Commercial Code Section 193/30).

 

However it is not as simple as that. The loan is put on pause from the last time it is acknowledged. In reality this tends to mean the last time a payment was made. (Civil and Commercial Code Section 193/14 (1)).

 

You need to establish the last time a payment was made. If she paid any amount, the 10 years period starts from zero again...

 

In addition, when was the last time your wife signed anything from the lender? Has she enquired about the status of the debt? Was she asked to sign a form to get a statement of account? What did the small print on the form say?

 

If she gave written acknowledgement of the debt the 10 year period starts from zero again...

 

This is a specialist area of law with lots of variables, so what I have said might not be the definate answer as I do not have all the facts before me.

 

It should be enough to get you started though.

[SOUTHERNSTAR]

OP register a 30 years lease over the property in your name asap. That will give you security of tenure as the lease will override their ability to kick you out. Your wife must not hold substantial amounts in her bank account(s) as an assets search will find these funds which could be attached or could indicate wealth. Never let the bank know that she is married to a foreigner (ATM syndrome). Then approach a lawyer to make enquiries. This will trigger the bank, if they are clued up, to search for assets, if they find assets or find out she is married to a foreigner they will go for maximum amount to be repaid. It maybe that they have sold the debt then you just do the same for the other bank scenario. Offer the bank the original amount and see what happens. Include in your deal that any negative credit info be removed from the credit rating agencies.

[aussiandrew]

Go see a local solicitors take all the details you have on the case and pray very hard......

[Kabula]

I would demand to see all supporting documentation before I got to concerned.

 

Could be just another story to grab up some cash.

[bark]

Legal advice from Thai Visa Members ? Wake up !

[khunPer]

36 minutes ago, SOUTHERNSTAR said:

OP register a 30 years lease over the property in your name asap. That will give you security of tenure as the lease will override their ability to kick you out. Your wife must not hold substantial amounts in her bank account(s) as an assets search will find these funds which could be attached or could indicate wealth. Never let the bank know that she is married to a foreigner (ATM syndrome). Then approach a lawyer to make enquiries. This will trigger the bank, if they are clued up, to search for assets, if they find assets or find out she is married to a foreigner they will go for maximum amount to be repaid. It maybe that they have sold the debt then you just do the same for the other bank scenario. Offer the bank the original amount and see what happens. Include in your deal that any negative credit info be removed from the credit rating agencies.

Agreements between husband and wife may be void – several treads about this, so better check first.

[williamgeorgeallen]

sell the house if possible. then you have nothing to loose. not to those who have not bought a house, dont buy a house in some one elses name. buy a condo in your name if you have to. better yet rent the girl and rent the condo. good luck OP.

[Jedsada3]

"Buffalo dung smells only when you stir it"

Don't do anything, let them come by them self. If they didn't do anything for 12 years, why they will do now?

 

[F4UCorsair]

1 hour ago, SOUTHERNSTAR said:

OP reisistein a 30 years lease over the property ien your name asap. That will give you security of tenure as the lease will override their ability to kick you out. Your wife must not hold substantial amounts in her bank account(s) as an assets search will find these funds which could be attached or could indicate wealth. Never let the bank know that she is married to a foreigner (ATM syndrome). Then approach a lawyer to make enquiries. This will trigger the bank, if they are clued up, to search for assets, if they find assets or find out she is married to a foreigner they will go for maximum amount to be repaid. It maybe that they have sold the debt then you just do the same for the other bank scenario. Offer the bank the original amount and see what happens. Include in your deal that any negative credit info be removed from the credit rating agencies.

 

I can't comment on Thai law In this case, but In some countries, an arrangement entered Into, In an attempt to circumvent the law, Is void.  There are time constraints, but I don't know what they are.

 

You could possibly take a mortgage over the property for the estimated debt plus Interest, so If tbhe bank moves against the property, you as the mortgagee must be satisfied first.

 

Legal advice Is the way to go here.

 

Your wife has been less rthan honest with you, and this may be more of the same?  Money grubbing?  

Edited October 3, 2016 by F4UCorsair
addition

[johninbkk71]

I had a friend with a similar problem with credit cards and his wife, she didn't pay back, three of them I think,. One even got her to court  and deal to settle was made. Ten years later they had a condo and business. They contacted the Thai credit bureau- think that's the correct name- and got a credit report for her. It said all clear no debts. She got a car loan 2 months after that no problem.

But, it's always best to contact an expert on this, not rely on secondhand tales from T.V. 

[lungnorm]

It took her 9 years to come clean mmm. This may be the 1st of many other little secrets, next maybe a child or two that relatives have cared for but now wish to return them. You have been had, do not worry about it too much as its kinda normal for this sort of thing to happen. The only thing unusual about it is that its taken 9 years to surface. 10 years is the normal time for old debts to be written off a lawyer will confirm this.

[KKr]

What does it say in your prenup ?
If no Prenup excluding debt contracted prior to marriage,  I believe you are equally liable to the Bank as well. As suggested earlier, get some legal advice. 
 

Not unusual for the bank to be quite until almost 10 years have past. For all the period they will claim punitive interest rates, and make more than on regular loans.

[NoshowJones]

1 hour ago, bark said:

Legal advice from Thai Visa Members ? Wake up !

Keep in mind though that it could be very helpful if Thaivisa members tell you about their own experiences.

This applies to anything.

[Grubster]

2 hours ago, bark said:

Legal advice from Thai Visa Members ? Wake up !

I don't know, I thought BlackCabs info was very good.

[tonray]

2 hours ago, Jedsada3 said:

"Buffalo dung smells only when you stir it"

Don't do anything, let them come by them self. If they didn't do anything for 12 years, why they will do now?

 

With any luck you might die before they come after her.

 

"property in her name"......there is the mistake right there.

Edited October 3, 2016 by tonray

[peterpop]

Thank you all for your replies, some very well thought out and only one or two that were somewhat intellectually challenged.  I am very lucky to have a normal marriage and a trusting relationship.  In fact the admission came days [only] before the Chanute is due to be issued for the house in question.  Our solution is to check the Credit situation as suggested.  Thereafter a few workable options remain.  Thanks to all once again.  Matter now closed.

[TheFishman1]

yep a normal marriage only takes a few yrs 9 was it for wife to tell you about her money problems lol. Just could not help myself then again Normal Marrage

[F4UCorsair]

10 hours ago, possum1931 said:

Keep in mind though that it could be very helpful if Thaivisa members tell you about their own experiences.

This applies to anything.

 

And relating personal experiences may be very helpful. 

The 9 year wait should be a serious concern though.  OIt would be for me.

 

Unable to edit!!

Edited October 3, 2016 by F4UCorsair
attempt to edit typo and italics

[Odin Norway]

15 hours ago, SOUTHERNSTAR said:

 

You can not lease from youre wife if you are married like someone says,and whetever the prenup says it dosnt matter.The land is hers no matter what and the dept was made before marriage.I have never heard of a bank that actually take land because of dept,if its a goverment bank.Normaly thais use only a few banknames when it comes to loan on lands so I just guess its one of those.

My advice would be to come to an agreement with the bank on the interest and pay it of like you wanted to.

[blackcab]

2 hours ago, Odin Norway said:

You can not lease from youre wife if you are married like someone says,and whetever the prenup says it dosnt matter.The land is hers no matter what and the dept was made before marriage.I have never heard of a bank that actually take land because of dept,if its a goverment bank.Normaly thais use only a few banknames when it comes to loan on lands so I just guess its one of those.

My advice would be to come to an agreement with the bank on the interest and pay it of like you wanted to.

 

You can lease land from your wife, however any contract made between a husband and wife can be cancelled at any time or within one year of divorce, as long as the cancellation does not affect a third party.

 

I have seen literally hundreds of properties repossessed by banks for non payment of debt. Last year the Legal Execution Department resolved about 2,500 cases worth about 760 million baht. Out of those, about 1,300 or 270 million baht were from well known banks.

 

So property definately gets repossessed. Sometimes the loan to value of the property is outrageous however. I look at the location and photos of a property and wonder what the bank was thinking when they lent money on that particular deal.

 

Which is why it sits unsold for years.

[bark]

16 hours ago, possum1931 said:

Keep in mind though that it could be very helpful if Thaivisa members tell you about their own experiences.

This applies to anything.

Only when it comes to Thai GF.

[Odin Norway]

19 minutes ago, blackcab said:

 

You can lease land from your wife, however any contract made between a husband and wife can be cancelled at any time or within one year of divorce, as long as the cancellation does not affect a third party.

 

I have seen literally hundreds of properties repossessed by banks for non payment of debt. Last year the Legal Execution Department resolved about 2,500 cases worth about 760 million baht. Out of those, about 1,300 or 270 million baht were from well known banks.

 

So property definately gets repossessed. Sometimes the loan to value of the property is outrageous however. I look at the location and photos of a property and wonder what the bank was thinking when they lent money on that particular deal.

 

Which is why it sits unsold for years.

Well.I guess the 3 different lawers I asked was wrong then when it comes to leasing.I just asked for a waterproof way to build a house that I could not loose.I was told that lease wil be canseld if I got married.Im not married by the way.

For this guys problems it will not help to lease.Different answer when the dept is old and the house is new.He also married the dept when he did the.``In my eyes not so smart thing``

Ofcourse banks do take land,if its worth the money it is up for.But only a rai for house out in the bush somewhere.......I have not seen that yet in my ten years here.Just guessing the OP is in somewhere same situasion as many of us.Living the simple life in the ricefeeld somewhere.

[leither69]

Life sucks,  pay the debt.  Do the right thing.  

[Odin Norway]

24 minutes ago, leither69 said:

Life sucks,  pay the debt.  Do the right thing.  

Thats the only solution I can see aswell.Sorry too say but you married the dept.Anywhere else you would have done some resurch about dept,but its an easy thing to overlook here.I actually also payd out the grandfathers dept on my land before it could be separated out.But ofcourse I knew about it. Or it came to the suface when he wanted to give us the land for free and couldnt, just because of that loan.That dept was 35 years old.He had never been dept-free so he is a happy old man today.

[Odin Norway]

It would be a good thing to hear how big the dept is and how big the land is.If the dept makes sence to the sice of the land.Normaly it is not fortunes they can loan on riceland anyway.If its not in the middel of a big city it should not be bad from the beginning.

[SOUTHERNSTAR]

4 hours ago, Odin Norway said:

You can not lease from youre wife if you are married like someone says,and whetever the prenup says it dosnt matter.The land is hers no matter what and the dept was made before marriage.I have never heard of a bank that actually take land because of dept,if its a goverment bank.Normaly thais use only a few banknames when it comes to loan on lands so I just guess its one of those.

My advice would be to come to an agreement with the bank on the interest and pay it of like you wanted to.

Sorry sir but you are wrong just look at the banks websites to see all the reposses properties. As for leasing from your wife was an option according to a lawyer that we skope with. But you cant lease register a bond over the property. 

[Odin Norway]

11 minutes ago, SOUTHERNSTAR said:

Sorry sir but you are wrong just look at the banks websites to see all the reposses properties. As for leasing from your wife was an option according to a lawyer that we skope with. But you cant lease register a bond over the property. 

In my latest on this,I clearly stated that I was NOT married.So my lease is registered and payd tax for in the land office.I was over-ruled when I said you can not leas from youre wife.Obviosly someone knows this better then I thought I did after reading all about it in the law.I then choose to belive that what my 3 different lawers told me before my lease was made.And that is that you can not lease from youre wife.If you get married after the lease is made it is not worth anything anymore.I also said that banks do take land if there is money in it,but they wil not close down a loan for a coulple of 100k in the middle of nowhere.The loan that I payed of before my land could be seperated out was 77K and that was 35 years old.