Singapore Expats

Hello all ,

I went back to my home country due to some personal issue which i cant say in forum . I have to move as there is no option for me . I moved without paying credit card debt of 25 k from different banks. I am ready to pay back after getting a job. However , i have been getting mails from debt collectors saying that they want to move legally . Please and kindly advise what i should do at this point . Can i enter in singapore if debt collectors move legally . I just need to know implications of this . Please and be kind to reply with your experiences.

Please and kindly suggest my next actions

Call every bank that you owe. Work out a payment plan. It's the only way. Or, they may well pursue you back to your home country and attempt to collect... $25K is a lot of money.

Debt is mostly a civil action in Singapore however there are a few issues to keep in mind.

1. You may be bankrupted in absentia - it's a major issue if this happens as you are won't be allowed to leave Singapore after entering without permission of the OA.

2. Your debt will be sold to collectors who are far less nicer and probably far more effective in your home country - it's not possible to hide now with the internet so depending a bit on where you live you could risk serious issues.

I am have planned to call them and arrange payment as they decided .

I am not planning to come back to Singapore either. I am afraid what if am not able to pay back every month what they have decided.

3. You will be black listed by these banks GLOBALLY. That means if they are banks like HSBC and Citi you won't even be able to open an account with them again. I know people this has happened to and it is extremely inconvenient.

4. If you're a member of a profession where reputation is important a vengeful creditor will lodge a complaint with your association and potentially have you removed (important for docs, lawers, architects and some govt jobs).

You have to have a clear understanding of how the debt collectors work.

There are generally two ways that debt collectors work. First, they agree to work on behalf of the bank or creditor for somewhere around 25 to 45 percent of the debt owed. So, the bank already knows that if you owe them $10,000 and they have to get a debt collector to work your case, they might only get $5,500 to $7,500 of the total debt if you make your payments. They might get even less if you agree to settle the whole amount at say 75 cents on the dollar... the debt collector still gets their commission on the money collected. But, a bank will only go this route if they have determined you still might actually pay up.

Otherwise, the bank simply sells your debt. If it looks like it is real hard to collect, then if might go for as little as 2 to 4 cents on the dollar to as much as 25 cents on the dollar if it looks like you can pay. So, the debt company might buy your $10,000 worth of debt for as little as $400 or maybe as much as $2,500. In your case, it's probably the low end because you are out of country and will be complicated to track down. But, not impossible.

The debt collectors cannot attach your bank accounts or take your property without a court order, and your debt has to be relatively current to get a judgment. That is exactly what PNGMK is talking about... if you are bankrupted, or otherwise held responsible for the debt, you could be attached in Singapore and, depending on which country you are talking about, the debt collectors may be able to use the Singapore judgment to come after you elsewhere... maybe.

So... you have two things in your favor. First, you can see that the bank doesn't get shit out of the total amount you owe if it goes to collections. And second, you will be hard to collect from and the bank won't get very much if they sell off your debt.

Therefore, if you make any realistic plan with the bank that might end up paying them as much as 50 percent of the debt you owe, even if it is not very much every month, the bank will come out ahead and so will you.

They will want to push on you, of course, to pay more or the whole thing... but you know their alternative is less attractive. So... offer them a low monthly payment until the debt is paid. If they balk, offer to increase it after a year or two. As long as you make regular payments, at some point, a year or two down the road you can ask for a lump sump payoff that's a lot less than the amount owed. They still come out ahead as they will get less with a collector.

Be aware the SE's solution may not stop you being black listed by the bank. They still have the right to refuse you service as a former bad debtor.

PNGMK wrote: 1. You may be bankrupted in absentia - it's a major issue if this happens as you are won't be allowed to leave Singapore after entering without permission of the OA.
.

But they can't touch the HDB flat if you are bankrupt, I learned. My late father-in-law went through bankruptcy.

Splatted wrote:

PNGMK wrote: 1. You may be bankrupted in absentia - it's a major issue if this happens as you are won't be allowed to leave Singapore after entering without permission of the OA.
.

But they can't touch the HDB flat if you are bankrupt, I learned. My late father-in-law went through bankruptcy.

Nor your CPF.

i am not a local in singapore . I dont have any property and attachments in singapore.

Hi,
you can look for debt management plan (DMP). some of the service providers don't charge any fees.