need help regards bike guarantor

[thegal]

hi everyone,

 

im new here. im a guarantor. 1stly,i was not been inform wat are the terms and condition for being a guarantor from the owner or the shop itself when i came down to the shop before giving my nric. recently the bike shop representative came to my house telling me that the owner didnt pay from the 1st installment till now plus the recent repair that he made. the shop has reposses the bike. i lost contact with the owner. the shop mention that the owner now in detention barrack but we do not have any proof whether its true. the shop now wants me to pay the total amount of $5000 plus. They mention that since they cant get the owner,im the one who has to bear all this consequences. they want me to pay half of the amount before 25th this month and the balance by monthly installments. they mention that if i didnt pay before the 25th, they would bring this case to court and i would be declare bankrupt. my questions is:

 

1. must i bear all the consequences and pay the shop?

2. is it true that the shop can proceed the loan even without the owner and guarantor payslip and that the owner is unemployed at the time of purchase?

3. is it true that the guarantor has to bear all the consequences and the owner gets to free?

4. must i report this case to the police?

 

please help me.. i need to save my future..

[kittosoft]

cannot bankrupt, only 5k. Try and talk it out with that guy's family see what they can do. Remeber to talk to the bike shop also...

[rezz_shaz]

1. yes u have to bear the unpaid installments up to the time of reposses plus intrest, but not sure bout the repair bills, as u only guarantor the purchase of bike not repairs...

2. yes bike shop can proceed with loan even if buyer is not employed, that's why there's a need of a guarantor....but if i'm not wrong the guarantor must be at least 21yrs old and working.

3. somebody have to bear the cost, either u or the owner. its up to u to "persuade" and settle with owner.

4. u can try to report to the police, but on what ground?

[kobesingh]

talk to the family. if the guy in db. parents or relatives can visit them once a week. u can also go and visit with the family members but must call up db first. then go n sort it out tell the bike shop to wait and have ur trust for u to better understand the situation. and yes.... ur bearable for all the cost... should read the contract before signing..

relax.. calm down.. n think through..

[Demon]

hi everyone,

 

im new here. im a guarantor.................................

 

please help me.. i need to save my future..

 

The repercussion is much more serious.

 

If you cannot fulfill your role as a guarantor then you will screw your personal credit rating. Subsequently, you may have problems applying for credit cards, vehicle loans and even housing loans, including HDB.

 

[thegal]

on the day that the shop representative came to my house, we go to the owner parents house and talk to the mother. she mention that she dun have any money and will not help in this case coz she disregard her son..bla bla bla.. so,conclusion is the parent wil not help me on this case. is it possible if i get the money back from the owner or the parents?

[IvikaRazI]

on the day that the shop representative came to my house, we go to the owner parents house and talk to the mother. she mention that she dun have any money and will not help in this case coz she disregard her son..bla bla bla.. so,conclusion is the parent wil not help me on this case. is it possible if i get the money back from the owner or the parents?

 

Legally via lawyer. Its a very expensive lesson for you. Do not sign any how. It may cost a lot in the future.

 

Try to speak to the owner. I'm sure can settle things. If all else fail, speak with the bikeshop and see what solutions they can offer. In the end, someone still have to pay for it.

[SeribuCC]

Bankrupt? Don think so..

They will lodge a case against u through court.. Court will send a letter to u that a case against u have been made.. If payment is still not being made after the deadline , court bailiff will come to ur house to give a writ of seizure.. If still payment is not made within the stipulated period then they will seize ur items which will then be auction off to pay the plaintiff, in which in this case the bikeshop. If the items auctioned off is still not enough, I don know what will happen..

How come I know so much? Been there done that.. Painful lesson for me but thankfully it has been cleared before items were seized..

What u can do is: If u have the cash pay the shop as to not to get urself in further s**t.. Then work out a payment plan with the owner.

Also credit bureau will be known of this matter and ur applications of loans, credit card will be rejected..

Till now I don have a credit card or took a loan but come to think of it its a gd thing..

Edited November 25, 2009 by SeribuCC

[swoosh]

deleted read the next post

Edited November 25, 2009 by swoosh
double post hahaha

[swoosh]

The lesson here is be prepared to lose the guaranteed amount, when you signed as a guarantor....

 

Credit cards ? i think currently, this is the furthest thing from your mind. I suggest you go back to the shop and negotiate. If you have biker friends ask them to accompany you to help u. Do not be confrontational when u talk to them. If u do not own any assets tell the bike shop now. Convinced them you need a long repayment plan. Getting away scot free fm this is out of the question. You may avoid it for a while but the problem will come back and haunt u sooner or later.

[DannyCrane]

just try to nego with the bike shop and then pay off everything.

 

trying to suggest that you dont know the term and condition or the responsibility before signing is not going to help you. but there are some cases that the guarantor's responsibility can be discharged when it is proven that at the point of time he/she is not capable of signing the contact (like unsound mind, less than 18 yrs old, forced to be a gurantor...). So good luck.

[thegal]

thanks guys for all the advise. recently,i've paid half of the total amount to the shop and the other half by installments till 10 months. i still get no news from the owner. he is running away from me though. well,this is a valuable lesson to me that i'll nvr forget. but i still feel dissatisfied coz the owner gets away with no charges. not fair...

[doubl3mint]

i'm curious here. so in this scenario, the guarantor pays off the full amount right? 5k+ as mentioned by the TS. who keeps the bike?

[Scott10]

Was thinking along that line as well:

 

Can't TS settle the payment and then keep the bike? After which you can sell the bike away to recoup your losses.

 

By the way, the writ of seizure thing is not really a nice thing to go through. It is damn depressing...

 

Just curious, how is the owner related to you? And how did you end up as his guarantor? This is something I will only do for family members.

[chuan.z]

If the bike has not been sold off, i.e. the $5k+ is for the bike + repo fee + storage fee + admin fee, bike shop will just "release" the bike. It will still "belong" to whoever the bike was registered to in the first place.

 

If the bike has already been sold off by the shop, i.e the $5k+ is the outstanding amount after all the above less the proceeds from the selling the bike, then nothing left.

[doubl3mint]

well in that case, hope the ts approaches the situation calmly, check with the shop and get an invoice stating clearly the breakdown of the costs, and after paying obtain a receipt for the same.

 

would be sad if the shop uses this opportunity to take advantage of the situation, and sadder if ts falls for it.

 

 

do check back here if the amount given seems unreasonable. its hard to tell now because the details are vague.

[KeraKing]

thanks guys for all the advise. recently,i've paid half of the total amount to the shop and the other half by installments till 10 months. i still get no news from the owner. he is running away from me though. well,this is a valuable lesson to me that i'll nvr forget. but i still feel dissatisfied coz the owner gets away with no charges. not fair...

 

you're the one who chose to agree to be guarantor.

 

after you settle with shop, you may get a lawyer to fight this case against the owner.

 

all the best.

[hoace]

Why so careless? Last Dec, my brother Hoa B H also got the same problem. His so called good friend (name: Black leopard), asked him to be guarantor too and did not pay up the instalments.....my poor brother received lawyer's letter and asked to pay the so called $8K+. The motor bike was sold by the motor company and still balance $8K+. Never trust close friend. His the other friend worst- guarantor for car, got to pay $10+K, same guy same method. Not sure is this bloody man went for other preys too!

[hoace]

For your information

[AliDavidSum]

Since the owner is avoiding you, what are the chances he will pay you? 0%

 

Since he is in DB, how much cash he has at hand, and days after DB? No hard to calculate.

 

Since he is avoiding you, do you think he wanna pay you? No hard to imagine too...

 

I am not trying to pour cold water, but the fact that he is playing hide & seek with you, his actions is telling you he will not pay. You must be prepared for that.

 

1st installment already no payment. Can not imagine how he get $5K to pay shop.

 

if the bike shop refused to compromise (they have the right to do so), and you can not come out the money by the date they wanna you to pay, you should consider borrow money from licenced Money Lender or loan from Co-operative (if you are Union member), to pay the shop first, and then slowly repay money through money lender. I know GE money & POSB do provide such services. Check it out first, in case you need it.

 

Since you are paying for the bike, ask them how to do transfer to you? Then sell it off - at least you can recover about 1/2 the money.

 

Bike shops wanna guarantee when they believe the owner does not have the means to pay. Sad to say - they are right most of the time.

Edited May 28, 2010 by AliDavidSum

[swoosh]

Since you are paying for th ebike, ask them how to do transfer to yoyu? Then sell it off - at least you can recover about 1/2 the money.

 

A guarantor do not have ownership rights to the bike. In most cases bike shop will sell the bike, less the sales proceeds and go after the customer and guarantor. In this case, TS did not mention the whether the bike has been sold anot.

[GrandmasteR]

hey bros, is there anywhere i can read up on the terms and conditions of a guarantor?

[seahmh]

I am stuck in a similar situation like TS.

 

Guarantor for a friend. That guy stopped paying after making the 3rd payment, i.e. defaulted from the 4th instalments onwards.

 

After the bike shop repossessed the bike and sold it off, there is still an outstanding balance of S$6,700+.

 

The shop sent that guy and me a lawyer's letter asking for the money. My friends and I went to this guy's house.

 

Apparently like a lot of you guys said above, he is like avoiding me, call him until my mobile burst, also no answer.

 

He never pay the amount by the due date.

 

The law firm engaged by the bike shop sent someone to my place to issue me a court summon last night.

 

My friend (a lao-jiao in the "bike-world") said, both that guy (This guy is an Army regular, not an officer though.) and I will have to go court, then the court will order that guy to pay the bike shop through monthly instalments deducted through his monthly salary, since he is earning a salary as an Army regular. Is that true?

 

(1) How will the court appearance affect my personal credit rating which will affect my future loans applications?

(2) About the writ of seizure, shouldn't the bike shop be seizing items from that guy's house, and not the guarantor's house?

 

What should I and can I do now?

 

All thanks to this guy.

 

I will never ever be a guarantor for anyone else, if I can ever get out of this case.

Edited December 30, 2010 by seahmh

[seahmh]

BTW, TS, you settled the case by paying off the amount to the bike shop?

[n4smw26]

I am stuck in a similar situation like TS.

 

Guarantor for a friend. That guy stopped paying after making the 3rd payment, i.e. defaulted from the 4th instalments onwards.

 

After the bike shop repossessed the bike and sold it off, there is still an outstanding balance of S$6,700+.

 

The shop sent that guy and me a lawyer's letter asking for the money. My friends and I went to this guy's house.

 

Apparently like a lot of you guys said above, he is like avoiding me, call him until my mobile burst, also no answer.

 

He never pay the amount by the due date.

 

The law firm engaged by the bike shop sent someone to my place to issue me a court summon last night.

 

My friend (a lao-jiao in the "bike-world") said, both that guy (This guy is an Army regular, not an officer though.) and I will have to go court, then the court will order that guy to pay the bike shop through monthly instalments deducted through his monthly salary, since he is earning a salary as an Army regular. Is that true?

 

(1) How will the court appearance affect my personal credit rating which will affect my future loans applications?

(2) About the writ of seizure, shouldn't the bike shop be seizing items from that guy's house, and not the guarantor's house?

 

What should I and can I do now?

 

All thanks to this guy.

 

I will never ever be a guarantor for anyone else, if I can ever get out of this case.

 

Wah.. Wat bike sia he buy. After minus sale proceeds repo etc, still got 6700$ balance.. Pity u bro.

To ans ur questions..

 

1) if writ of summons oredi issued, ur credit health oredi affected bro. Will be recorded at credit bureau.. If never go court, judgment will be issued against u and owner on behalf of bikeshop for the amount..

 

2) since u guarantor, the writ will include both ur names, and both are equally liable.. Any writs will have both ur names..

 

U mention he army regular? Dun think he may have a chance to have the money owed deducted from his monthly salary ah. May be forced to resign or something...

 

All u can do now is pray that the owner decide to clear the debts on his own without involving ur money...

 

Just to share an experience, long long time ago, I always trust my friends. Especially the close ones.. Due to my trusting nature, I end up paying money owed to bikeshop and spending 2 weeks in jail for numerous summons not incurred by me.. Sigh..

Just a hard lesson in life for me that happened more than 10 years ago.. Not wishing for that to happen to anybody.. Especially the younger riders..