Home / Malaysia Bankruptcy Law / Business & Consumer Bankruptcy Law Personal guarantor for a company Personal guarantor for a company, might lead to bankruptcy

Personal guarantor for a company (modified 0 times) jen10 I am a retirement-aged widow. After sudden death of my husband (2 years ago in 2008), one of the malaysian listed company was suing my husband company due to debts owed (about RM 180k). Unfortunately, I was a personal guarantor for his Sdn bhd company since the company establishment in year 2005 eventhough I did not involve in any of his company business activities as I am a layman for business. The creditor company has called me to settle the full amount in lump sump in beginning year 2009 but I told them that I am unable to pay lump sump as I am financially unstable due to my family commitment. Therefore, I proposed to them to settle my all my outstanding amount by way of installment basis. However, that company did not allow me to settle the full amount by installment but instead started to take legal action against me since beginning 2009. I believe that they presume if the court case takes long duration, they can charge me more money than its original amount since there is a clause written in the quarantor letter/agreement that every year the interested accumulated is about 10%. I am in extremely depressed condition especially my husband sudden death of heart attack did not fully settle his debt. I just would like to know in the event that I lose the court case (which stand a very high chance) in the near future and worse case if that listed company sue me by way of bankruptcy, does it affect: 1. My small amount of fund in malaysia bank? Will it be frozen if that company sue me for bankruptcy? 2. My recent low cost apartment sold to my uncle where the name has fully transfered couple of weeks ago to him meaning the whole selling process is about to complete sometimes before Chinese New Year, whether the bankruptcy act can confiscate my uncle's apartment? or how? 3. My existing foreign bank money under my name that I kept overseas ( in New Zealand bank) for my son to complete his degree in overseas?? In fact, due to the deceased of my husband, my son has to work part time in overseas while study to support himself since my fund in New zealand bank is insufficient to support him for the whole university expenses? 4. My current apartment which I joined name with my son? Does it affect or confiscate my apartment? 5. I have a simple Will made which stated that my apartment to be inherited by my son. In the event I passed away before the court case settled, will my son be the one sued by the company instead? Will my apartment and money in bank go to creditor and never pass to my son if the money is not sufficient to pay the debts? There is a clause in the Guarantor letter stated "This Guarantee shall be binding upon the Guarantor(s) his/their respective personal representatives heirs and assigns.". I am very depressed whenever I think of all these problems around me. I am deep dilemma in terms of what to do next and what is the right thing to do... Pls advice. Thanks 29 Jan, 2010 09:09:01

RE:Personal guarantor for a company (modified 0 times) virnicia What did your lawyer say? 29 Jan, 2010 10:16:21

RE:Personal guarantor for a company (modified 0 times) jen10 if my lawyer is helpful, I wont be asking here... I really need someone here who has real experience or sincerely want to help people to answer me here. I lost my husband, I really can't afford to lost the apartment he passed to me.. 01 Feb, 2010 05:10:00

RE:Personal guarantor for a company (modified 0 times) notalawyer 1. Yes. Please withdraw and keep in safe deposit box. 2. If there is a S&P and your uncle paid you at near market price, they wont confiscate it. If only transfer name, they will confiscate it. If this is the case, ask him to sell to stranger asap. 3. What is your question? 4. Probably. 5. Your son may not get the apartment b'cos the creditors will claim from your estate. 6. 01 Feb, 2010 08:59:05

RE:Personal guarantor for a company (modified 0 times) jen10 Thanks notalawyer for your reply. My number 3 question is will my money kept in bank in overseas be taken back by the creditor? 02 Feb, 2010 06:17:33

RE:Personal guarantor for a company (modified 0 times) notalawyer No it wont. 02 Feb, 2010 07:03:26

RE:Personal guarantor for a company (modified 0 times) dragonking Hi Mam.... Rule no 1...never get worried and that will only clutter your mind. From what I read your statement, it seems that you were not aware of any transaction what so ever during your husbands term. first, the creditor must give you the details of the claim- ie how much claim, interest, agreement and so on. All you may know is that these transaction may not have been done during the tenure....I have come across of these kind of case 02 Feb, 2010 14:06:50

RE:Personal guarantor for a company (modified 0 times) jen10 Thanks to you two. dragonking, you're right. An outsider told me to be aware that the company 'pakat' with one of my relative to make the goods deliver to his site/make fishy accounts and invoiced on my late husband's company. It is contruction industry, how do i know what goods has been delivered to our site or not previously? It is all dark there. I lost faith with those so called professionals. This world is full of prediators. Since my husband passed away, my son and I have to be the dummy directors for the sdn bhd. The company is basically not operating now. Dunno how to get out of this, really have to know how to safe-guard my late husband left over property to me to avoid more mis-fortune. 02 Feb, 2010 15:16:35

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