I was one of the three directors in a company. What was a supposed happy and proud achievement and arrangement ultimately led me down the rabbit hole that is bankruptcy. I was made bankrupt in 2018 following a default in payments by the other directors who were managing the loan, a loan I was involuntarily made a guarantor of.
Life as I knew it changed right before my eyes. Being a bankrupt meant all the simple luxuries of life had been stripped away from me. Instead of a 0-100 I went from a 100-0. I was not able to have in my possession any whatsoever assets under my name, bank accounts are to be monitored and regulated by the DGI (Director General of Insolvency), I was not allowed to be a director of any company and neither was I allowed to own any shares of a company. Simple luxuries such as travelling out of the country was also completely taken away from me.
I consulted ACC on the matter and they sprung into action to try to get my guaranteed sum shrunk to the least amount payable, on account that I alone, should not be liable to pay the full sum of the loan. After careful negotiations and going back and forth for a months, we came to a settlement agreement of one-third of the guaranteed amount which was initially asked of me.
One-lump sum was to be paid up-front as a gesture of goodwill and the remaining sum would be paid by way of 40 monthly installments. To prove that we were eager to pay off the debts, Mr Chang added a few lines in the agreement which allowed for further discounts when certain conditions were met.
One of which stated that upon completion of the first 35 consecutive monthly installments without default, the creditors shall agree to waive the remainder sum. Whilst the other stated that if I were able to settle a certain sum within the first 3 months from the date of the Repayment Agreement, the creditors shall waive the remaining balance sum.
To prevent my nightmare from progressing any further, Mr Chang also stated in the settlement agreement that the creditors shall waive the entire balance judgement sum against me. Further specifying that however the creditors choose to settle the outstanding judgement sum with the other two directors shall be none of my business.
So, kids don’t saja-saja be a guarantor. You never know when you might be made bankrupt out of the blue. I was an involuntary guarantor and this was the involuntary mess that happened upon me. Despite this treacherous ordeal, and all thanks to ACC I am happy to announce that upon settling all my agreed upon settlement amount (earlier at that, thanks to the discount afforded to me by my counsel in the settlement agreement), I have been discharged and is no longer a bankrupt.