facebookPlease advise me what to do about my 100k debt for an old man with no skills? Curious why the bank just do not want to declare me bankrupt? Is it because I have no asset? - Seedly

Anonymous

06 Nov 2020

Events

Please advise me what to do about my 100k debt for an old man with no skills? Curious why the bank just do not want to declare me bankrupt? Is it because I have no asset?

I am a 50 years old man who has 100k debt from an unsuccessful business. Currently, no money and no bank account as i borrowed 100k from almost all banks 10 years ago. I am not planning to pay because first- I have no saving and the only asset i have is a HDB.

My HDB is joint name and i want to leave for my children, will they make me sell?

Will my debt be written off if I die ? I have 3 children who are in uni and these debts are just under me. Are my children liable to pay?

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Rachelle Lye

06 Nov 2020

Digital Marketing at Fintech

Hi Anon,

I'm really sorry to hear about your situation.

Disclaimer: The information below is not intended to be and does not constitute financial advice.

Here is some infomation I found online in response to your questions, in the event you are able to or do declare bankruptcy:

  1. Some assets are considered protected assets and will be excluded from the bankruptcy estate (and hence protected from distribution to creditors). These include:
  • Property held by you as a trustee for someone else;

  • Your HDB flat (if at least one flat owner is a Singapore citizen);

  • Monies in your CPF account;

  • Life insurance policies held in express trust for your spouse or children;

  • Any items/equipment required for the personal use in your employment, business or vocation;

  • Equipment/furniture required for your family’s needs;

  • The remainder of your monthly income after deduction of the monthly contribution; and

  • Any annual bonus or annual wage supplement paid as part of your income

  1. Your family will only be liable for your debts if they are co-borrowers of the debt with you. For example, this can happen if:
  • You took out a home mortgage in both you and your spouse’s names

  • You took out a hire-purchase loan for a car in both you and your sibling’s names

  • You borrowed money using a supplementary credit card that is tied to your parent’s name

Family members who are guarantors for your loan can also be made bankrupt if they are unable to repay it.

If you and your spouse live in an HDB flat, you should inform HDB about your financial situation so that HDB will not take legal action against you for any outstanding payments to them. HDB can also help draw up a temporary payment plan with reduced instalments to ease your current financial burden.

  1. Should you pass away, your estate (different from the bankruptcy estate – your assets money, property, etc. – distributed to persons who will inherit them) will be administered in the following manner:
  • Subject to the funeral, testamentary and administration expenses having priority

  • The OA will continue managing the bankruptcy estate to pay off your debts to the creditors. In other words, your death does not mean that your debt will be automatically discharged.

Source: Singapore Legal Advice

However, I do think it would be good for you to seek a financial advisor (perhaps a trusted friend in the field?) for your situation as it affects not just you, but your children as well.

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Jiayee

02 Nov 2020

Salaryman at some company

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