Wednesday, March 23, 2011
Of more than 1.7 Million bankrupts in Malaysia, there are more than 90,000 civil servants of the Malaysian government that are made bankrupt just because they failed to pay on their car loans or being a guarantor to one.
This is especially sad as there are no discharge from bankruptcy even after many years in Malaysia and for just RM30,000 , one can be made a bankrupt for that small matter. That amount works fine 20 years ago, but now anyone having an income of RM1,500 earmarked as the living below poverty line, it does not make much sense when cars are sold for RM90,000 for a Proton Inspira compared to RM20,000 when the Saga made debut.
What I propose is for the amount to be raised to RM100,000 as even that is insufficient to buy a small house being that a low cost home is valued at RM220,000!! In itself, that does not solve the stigma and problems of the borrower and creditor.
Chapter 13 of the Bankruptcy Act in the US Legal Code states that if someone declares under this Chapter, then he is to be stopped from being harassed so that he can catch up on payments and with no interest charged. This is inline with the Individual Voluntary Agreement (IVA) rulings in the UK where a debt can be written off, or heavily discounted to the extent of the creditor of getting some sort of capital back from the debtor.
Many businessmen and women operate out of the concept of law in Malaysia when they are already made bankrupt. They use proxies, fake documents or even secondary identification documents to leave the country such as Indonesian Passports or the such. Using proxies are a thing of common doing where someone else lends their name to act on the Cash & Carry business, Signing Cheques and stuff for the company.
Some even use OFFSHORE ACCOUNTS such as Gibraltar , Cayman Islands and along those lines to launder their funds. It's a lose-lose situation for the debtor and creditor as no money will ever be paid.
Chapter 7 is where one has the whole slate wiped clean upon satisfactory regular payments to the Official Receiver / Assignees. Singapore practices this system where you get a wipe down after 3 or 7 years, depending on your debt. Many countries such as UK practice this method and is not a burden to the creditor too as they get some sort of payment back.
Since doing work on oDesk , I came across many technical knowledge on Chapter 7 which gives me insights to the business Legal Issues. So do check these sites out and learn how you can get your finances back on track. What we need to do is to learn from our mistakes and not to make the same thing again.
Saturday, March 19, 2011
This question was posed to be by a close friend, whom I know personally and find it disturbing.
Thing is that she works in a small bank, more of a community bank in the area with just 4 branches and she had her run of endless bad luck. Her son and husband were caught in a bad traffic accident thanks to a drunk and made her husband unable to work due to the spinal injury. That made him lost his job at the local yard. Her son was also badly injured and required much medical assistance. That bumped her finance off track, raking up over $80,000 in bills alone.
Now that the credit crunch is still about and with her meager pay as a Front Desk Officer (aka Teller+Customer Service) of $2200 a month before tax, made her unable to keep up with the minimum amount due. The interest thanks to Capital One, American Express , Diners Club and a few others are just as bad as borrowing from ” Richie the Loanshark” at over 39.9% APR (I bet even the mob will have some sort of humanitarian sense and not smack her that high of a rate) . So she intends to file for bankruptcy in the state of Michigan. The charge cards which were initially used to secure the medical services are charging her 12% PER MONTH in interest alone! This is despite her complex healthcare benefits and medical insurance who guaranteed payment. The biggest lenders won’t even consider listening to her.
Being a small town, this has been the talk of the town. The big boss (aka the CEO of the Bank) has got wind of it and the HR Manager has been told to let my friend go at all cost. Many were not happy with the decision and the HR Dept are telling him otherwise. So what should she do and the HR Manager do instead? Give her severance and let her go or help her out? Her work has not been that great ever since her family had that terrible accident, and almost literally broke her down in bits and pieces.
I know this situation happened to someone back where I worked in London, England and the guy was lucky enough to be working for an Islamic Finance & Amanah company, and that the company bought over the loans, and that the chap had to make a signed agreement to cancel all his other unsecured facilities and credit including his mortgage to the Finance Company where they assist him in the repayments and canceling a huge chunk of the credit card debt as this was part of their Credit Community Service (well, they just yank off any money held under the mosque trust fund's profits as it's part of the agreement to help the needy). But here in Michigan, my friend has no luck with that kind of thing as that don't exist in our society.
It's like telling her to get ready to stay on the streets and I am really crying my heart out for her and the family. $80,000 is heck of a lot of money. She is a God fearing Catholic family and even the local church can't help her out.
This is a touchy issue since many of us are on the web and I have seen severe outages in routes for the North East Asia crossing comprising of Pacific Internet, Global Crossing, SingTel Internet eXchange (STIX), AT&T, Cable & Wireless. I’m facing serious problems thanks to the fiber optic outage issue on the northern Asian region as the packets are diverted off to South Pacific and other gateways.
Heck even Google Web Cache service is giving me problems. I had to resort to TMNET DIALUP SERVICE to ensure some connectivity to the South East American hub like Texas, Florida and UK sites which are seriously lagging. Not to mention that I have data stored on my European Clouds… these are loading slower than a 28.8kbps dialup!
What a real drag! I thought we learnt our lesson during the last Taiwanese disaster? DURGH!
Thursday, March 17, 2011
Finally, a first job on the ODESK by the Hour.
Please feel free to check out these website forums and register.. I’m just helping to promote them…
Care Givers and Old People’s Issues - A MUST READ!
FREE LEGAL ADVISE forum – useful for immigration and stuff!
Do check it out and chip in.
For those going for my PENNY PER HOUR JOB.. please read the post order properly.
Tuesday, March 8, 2011
Sunday, March 6, 2011
What is a COMPREHENSIVE CAR INSURANCE (UK) and How does that work?
Car insurance varies in the United Kingdom which also covers Northern Ireland , the Balwicks of Isle Man, Jersey and Guernsey and the Republic of Ireland as a whole. Also known as First Party Insurance, the vehicle is covered for accidents while in the possession of the Owner, Insured or Authorised Drivers and also to any other parties, such as motor vehicles, public and private property and liability to third party as a result of the accident caused by the named persons.
Comprehensive insurance also covers damage to your own vehicle if it was hit by a drunk, Hit-and-Run , Uninsured or of your own fault such as loosing control and hitting the center divider for example and no other party was injured or damaged. Some even cover you while driving other people car at THIRD PARTY RISK, meaning damage caused to other parties.
There are many conditions of COMPREHENSIVE attached to a comprehensive first party insurance which includes, Social , Domestic , Leisure and Pleasure Use, Commuting SDLP, Business Purposes and Public Liability (Private Hire) coverage.
Should you buy COMPREHENSIVE INSURANCE?
The answer is Yes if your car is worth a lot of money should you run into an accident. In terms of ECONOMICAL SENSE , if the costs of a repair is more than the worth of the vehicle, then it is a CAT C write-off, for example a Proton Persona which is 4 years old or any motor car which is more than 5 years of age does not warrant repairs should it be in a road traffic accident as repairs will cost more than the car itself. Rule of thumb is that any car whose value is less than 4 times the premium or $3000 is not worth insuring at First Party, unless the cost of First Party Insurance is less than a Third Party Insurance.
The answer is also YES if you are under 27 years old or had a license less than 5 years clocking less than 30,000 miles. These also applies if you tend to drive not just one car at a time such as driving your mom to her weekend activities on her own vehicle.
Comprehensive insurance are usually restricted to just the OWNER , POLICY HOLDER and AUTHORISED DRIVERS so do watch out for the fine print.
Benefits of Comprehensive Insurance / First Party ALL RISKS
The car insured are fully covered against theft, damage to other people , vehicle and property (public and Private) along with own negligence such as driving through BLACK ICE and smacking onto the sidewall of the motorway. Among other things include the following:
- Driving other people / car at THIRD PARTY RISK (OWNER & POLICY HOLDER ONLY)
- Theft of Motor Vehicle at Home
- Theft of Stereo and Belongings inside the vehicle
- Accident caused by UNINSURED or HIT-AND –RUN drivers
- Vehicle Recovery (Tow Truck) from accident scene to your home or garage.
- Green Card Coverage (European Union – Schengen States) Third Party Insurance
- Complimentary Courtesy Car should your car goes into a garage
- Outward Bound Passage – gets you to where you want to go from the accident scene to either your home or destination (EU-Home only) by any means possible
- Discounts at many outlets.
- Comprehensive Coverage in the British Isles, Balwicks, Ireland.
- Windscreen cover should your windscreen breaks as a result of a flying rock on the motorway or in an accident.
- Legal assistance.
These are not comprehensive and dependant on any additional premiums by the insurer. The AA and RAC includes most of these as standard if you take on to be a full member.
What to watch out for in a COMPREHENSIVE INSURANCE
READ THE FINE PRINT. Usually, the excess coverage is usually stated, from $300 to $2000 per accident. Some would say your NO-CLAIMS-DISCOUNT(bonus) NCD/NCB would be protected if you pay an additional premium. It is not wise if you banged up someone else and put a claim in if the repairs are less than the premium and excess combined. The premiums will drastically rise up on your renewal.
Drivers not named on the insurance policy are NOT COVERED BY THE POLICY and thus you may be out of pocket. Automatically, the Motor Insurance Bureau will have to cover the other party(or more) for 3rd party liability.
Look out if it covers COMMUTING. If you park your vehicle in a public car park at a train station and you take a train to work, and realise that someone had nicked your car, then it is not covered as it was not declared to the insurers that you use it to commute to work. Many drivers and riders were caught out in the cold on this technicality. Don’t pinch the additional $30-$70 premium to cover yourself on the commute.
How to buy a COMPREHENSIVE INSURANCE?
There are many ways to get yourself insured. Have your details handy such as the cover note of your last insurer (or current) with the NCD, Vehicle Logbook or Registration Card and details of your drivers such as your wife and those who will be driving your car.
Getting to a nearby underwriting shop is simple but they don’t necessarily mean the cheapest rate. Students get the brunt of the insurers with skyrocketing premiums. Buying online has been a very good sense since you can check out all the relevant premiums and compare them. Don’t go for the Comparision Websites as they don’t normally give the best bargains.
One advise I normally give is to give a job title to yourself to lower the premiums. Students are costly but if you state you work in McDonalds or a local Pizza Hut, then the difference is huge as much as 70% difference. Company Directors, Doctors, Medical Professionals are charged the lowest with Actors, Drivers, Couriers (UPS, FEDEX, DHL) being the highest risk and in that category includes any GOVERNMENT CIVIL SERVANTS, Military Personnel and Police (the like).
How to find the CHEAPEST QUOTE?
CHEAPEST DOES NOT MEAN BEST VALUE FOR MONEY.
That is the actual fact. Check the value of the perks if you wish to compare them properly. These are offered by The AA, Liverpool Victoria, RAC, SWINDON and many more. Some offer cashback. I offer as much as $20 for every premium taken out to my Charity shop.
Evaluate how you are going to use the policy. Are you going to chug away daily in the car and clocking huge mileage? Is 4000 miles enough or about 20 miles daily? Are you going to drive to France on the ferry for the cheap food, booze and fags weekly or monthly?
A third party quote may be just saving you 30% off a Fully Comprehensive Cover and many people don’t realise that. Pay a little more for that extra sense of security.
(note: this article is submitted to a customer without payment. This is still my copyright)