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The
Straits Times, 28 Nov 04
What to do with 7 banks on my back
after gambling away $100k?
Q TWO months ago, my family and I went for a cruise holiday. I had
already reached my credit limit on all my credit cards. In the casino,
I didn't have much cash with me so I called my credit card bank for
a temporary increase of my credit limit. I cashed out and went to
try my luck. After I lost everything, I called another bank, and then
another bank. Altogether, six banks approved a higher spending limit
of $6,000 each. In the end, I lost nearly $100,000 at the casino.
Recently, a seventh bank called me to settle my private house loan
and $80,000 overdraft, which I have exhausted. I can't settle the
debts. Now the bank wants to sue me for bankruptcy and I have no choice
but to let them proceed. I am earning about $3,500 monthly. What should
I do? What should I do with my credit card debt after I'm declared
bankrupt? Will the various banks follow suit to sue me as well? If
all the banks sue me, what can I do?
A IF ONE of the banks initiates action, it could have a snowball effect
because there is an alert system that will put other banks on notice.
Then they will in turn pull their credit lines from you. You are advised
to realistically gauge your ability to repay and see if you can negotiate
a restructuring of the loan with the bank calling in your loan. By
doing so, you may be able to pre-empt further action against you.
In the meantime, keep your job, stay away from gambling in whatever
form and begin to repay the existing debts as best as you can. However,
you may have no choice but to wait for the bank to proceed to recall
the loan and commence bankruptcy proceedings against you. Once you
are declared a bankrupt the other creditors can no longer commence
or continue any legal action against you, a bankrupt person. Instead,
they are likely to file proof of debts against your estate, which
is to be administered by the Official Assignee, so as to share in
the dividends or any debt settlement offer.
Justin Wee
Lawyer
Loke & Seah Advocates & Solicitors |
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