Bankruptcy is a serious legal matter that can lead to civil action against an individual. While the act of declaring bankruptcy is an ordeal in itself, people often forget that the consequences of bankruptcy may follow them for years. It is possible to avoid this by turning to a legal money lender in Singapore.
An individual or a business can only be declared “bankrupt” by a court of law. This action usually occurs when the debtor themselves, or one or more of their creditors makes an application to the court for this to happen.
Once the court has officially declared bankruptcy, the debtor’s assets may be seized to pay off the amount owed. Their wages will also be garnished in accordance with a repayment plan prepared by the court. While the debtor is allowed input during the process, the conditions are largely dictated by the court and the creditor(s).
A declaration of bankruptcy has catastrophic consequences for your credit. It stays on your credit report for up to a decade, depending on the specifics of the case. In that time, it will be virtually impossible to get a bank loan for a home, car, or any other purpose. You may not even be able to get a legal loan in Singapore from a money lender if you have been declared bankrupt.
However, it is possible to avoid all this unpleasantness. Simply take action and regain control of your finances with a loan from a legal money lender in Singapore before things turn critical.
Get a legal loan in Singapore from a money lender
For a small country of less than 6 million people, Singapore has seen more than its fair share of illegal money lending. Known colloquially as ‘Ah Longs”, these loan sharks prey on the desperate and vulnerable.
Their modus operandi is to offer very low-interest rates and perform no eligibility checks at all. Many people who are short of cash fall into this trap and end up facing serious consequences. This includes public humiliation, which is most often inflicted by throwing red paint on the debtor’s front door or on their vehicle.
Many Singaporeans still fall prey to illegal lenders today, mainly because they are tricked into believing that they are licensed. To counter this, the government has a list of every legal money lender in Singapore on the Ministry of Law website. If you are approaching bankruptcy and need a legal loan in Singapore, make sure to check the website before getting a loan.
In addition to that, here are a few more ways you can tell if a lender is legal or not:
- If you were approached for a loan instead of you approaching the lender, it is illegal
- If they advertise on social media or on chat apps, it is illegal
- If they don’t have a real office and meet only in public places, it is probably illegal
- If they offer you a loan without checking your financial documents, it is illegal
- If they offer you a loan without verifying your identity, it is illegal
- If they do not give you a complete and signed contract, it is illegal
Make sure that you avoid all these warning signs before you put your name on the dotted line.
Avoid bankruptcy with a legal loan in Singapore
Bankruptcy is a scary thing. However, don’t give in to your fear and make a rash decision to borrow money from an illegal money lender. There are many licensed money lenders in Singapore you can turn to instead.
The process will be simpler and faster than getting a loan from a bank. Meanwhile, you will also be able to avoid the high-interest rates, aggressive tactics, and tension of borrowing from a loan shark.
It is very important to act quickly if you are at or near your financial limits. Don’t wait for creditors to turn to the courts for a formal declaration of bankruptcy. You can avoid all those legal troubles simply by taking a loan from a legal money lender.
A quick injection of cash can help you keep your creditors happy and also give you a chance to make a living. You can use it to pay your employees, keep up with business rent or mortgage payments, and even pay off other high-interest loans.
Ultimately, the choice is simple: legal loan or bankruptcy. The answer is obvious.