Government loan after death to loanee

[sidjameson]

If a government worker were to die of cancer having taken out a million bht loan years back with a work colleague acting as guarantor, is the debt then written off or is the guarantor then liable?

[Gulfsailor]

Depends on the conditions of the loan. Mortgages often have a life insurance included which let the heirs of the hook. Without anything stipulated in the loan agreement the heirs become liable for the loan. If the inheritance is less than the debt burden, the heirs will decline the inheritance.  I assume at that point the guarantor will become liable for any outstanding debt. 

[sidjameson]

Thanks. She has no assets. The loan was used on health care a long time ago.

[BEVUP]

First of all what has being a government employ got to do with it

Second all matters will be put together in the estate & sorted but if no money left to pay bills they would be written off (like a company gone broke)

[Jeffrey346]

@Gulfsailor is correct...  My wife works for the Gov finance dept. and tells me "The guarantor is responsible" if there are no or not enough assets to pay the loan.

The guarantor is most likely a gov employee and is well aware of his/her responsibility. 

[Naroge]

As the bank required a guarantor in the first place it is obvious that they will go after the guarantor if the estate cannot repay the loan. Same principle as with all loans.

 

What I have noticed in Thailand is that many guarantors don't really think through their obligations when acting as guarantor. They just do it to help a friend and do not consider the situation that they themselves actually could have to repay the whole loan, due to no fault by themselves.

[wildewillie89]

I think it is generally accepted that the family and any assets will do their best to pay the loan first. Then if all else fails the guarantor will have to.

Government worker guarantors usually choose wisely. My wife and our family is very close to two other staff members...she is guarantor for them, and they are for us. If anyone else asks for her to be one she denies them.  

[scorecard]

5 hours ago, BEVUP said:

First of all what has being a government employ got to do with it

Second all matters will be put together in the estate & sorted but if no money left to pay bills they would be written off (like a company gone broke)

 

I don't think that's correct, a guarantor will be liable and in most cases will be pursued.

 

A case in point - the arrogant unethical dental professor who got (from memory) 5 locals to go guarantor for her extensive dental education, then she stayed in the USA and laughed whilst the local aged guarantors were forced to pay up, and in some cases putting them in very poor financial situations. 

[sidjameson]

It is a loan from government. Not a bank loan. I was just hoping there is some kind of insurance scheme against unlikely death. Seems not

[chickenslegs]

6 hours ago, sidjameson said:

It is a loan from government. Not a bank loan. I was just hoping there is some kind of insurance scheme against unlikely death. Seems not

It's doubtful that anyone here can answer your question. The only way to get the information you need is to examine the loan agreement or ask the lender.

 

Hopefully, there will be a life insurance element in the loan agreement.

[wildewillie89]

17 hours ago, sidjameson said:

It is a loan from government. Not a bank loan. I was just hoping there is some kind of insurance scheme against unlikely death. Seems not

How do the government give loans? Wouldn't it be a loan from a 'government' bank. Like Krungthai bank for example (the light blue one)? Generally, that is what it means when Thai say the government gave them a loan...as the bank's money is the governments. So the bank is under the law, which would mean the guarantor having to pay it back (if assets/family cannot). It is why smart Thai government workers choose very wisely who they sign their names for (make sure the asset is worth more than the loan and only do with 1 or 2 close people). 
 

That is why all government people are paid salaries into the light blue bank, and homeloans are generally with the bank. The repayments go back into the country.

Edited June 25, 2017 by wildewillie89

[1SteveC]

2 hours ago, wildewillie89 said:

That is why all government people are paid salaries into the light blue bank, and homeloans are generally with the bank. The repayments go back into the country.

 

Our government employees get their pay into Krungsri.

[wildewillie89]

4 minutes ago, 1SteveC said:

 

Our government employees get their pay into Krungsri.

Officials or employees?

[1SteveC]

6 hours ago, wildewillie89 said:

Officials or employees?

 

Are they not one in the same ?

[wildewillie89]

53 minutes ago, 1SteveC said:

 

Are they not one in the same ?

Nope.

Officials are the ones who pass the test, get all the benefits, where the pips and chest gear etc. Employees wear the brown uniforms on the Monday, but do not have the chest gear as they haven't passed the test/get no benefits. 

It is not uncommon for employees not to be paid into other banks, the employees at my wife's work places do not get paid into the light blue bank. But many employees also get into the Krungthai (light blue) bank too. My sister in law is just an employee teacher at a university school but still gets paid into Krungthai. 

However, as far as I am aware, all officials get paid into the Krungthai bank. Mayors, soldiers, police, teachers, medical field, municipalities etc etc. It is beneficial for the country as they take homeloans out, and the interest repayments go back into the country. It is why it is easier for officials to get big homeloans compared to non-officials (plus job security). 
 

[1SteveC]

13 hours ago, wildewillie89 said:

Nope.

Officials are the ones who pass the test, get all the benefits, where the pips and chest gear etc. Employees wear the brown uniforms on the Monday, but do not have the chest gear as they haven't passed the test/get no benefits. 

It is not uncommon for employees not to be paid into other banks, the employees at my wife's work places do not get paid into the light blue bank. But many employees also get into the Krungthai (light blue) bank too. My sister in law is just an employee teacher at a university school but still gets paid into Krungthai. 

However, as far as I am aware, all officials get paid into the Krungthai bank. Mayors, soldiers, police, teachers, medical field, municipalities etc etc. It is beneficial for the country as they take homeloans out, and the interest repayments go back into the country. It is why it is easier for officials to get big homeloans compared to non-officials (plus job security). 
 

 

OK, now I understand, you do not mean "employees", you mean contract teachers - the same as those of us who work at a Government establishment.

[wildewillie89]

50 minutes ago, 1SteveC said:

 

OK, now I understand, you do not mean "employees", you mean contract teachers - the same as those of us who work at a Government establishment.

Government workers usually refers to 'officials'. If they are not officials, they are referred to as 'employees'. It is stupid as the term 'employee' should incorporate everyone, but it just a class/respect based thing within the society.  

Employees are still contracted teachers. Every teacher is a real teacher (have their bachelor). The difference is the officials have passed the government exam so they have life long jobs and benefits. Where as those who have not are usually on short term contracts. Depending on how big the place of work is depends on how many 'employees' are on permanent contracts and how many are on 6 month or 1 year contracts. Also the pay varies greatly between the two. 

Yes, I work as an 'employee' at a few government establishments. However, I am still paid into Krungthai bank. Where as others who also work as employees at the exact same establishments are paid into different banks. Whatever is easier for the accounting department i guess, however, all 'officials' get paid into Krungthai. 

Edited June 26, 2017 by wildewillie89