How can I compel my wife’s sister-in-law to pay their family’s debt of more than 1million pesos, if they have no other source of income and property except their house and lot which is still under mortgage with Pagibig?

Jun, thanks for your question. When she made the loan, was there a written agreement or was there only verbal commitments?

you really got a problem there jun. you cannot compel them to pay if they have no income. for humanitarian considerations, you also cannot evict them from their house. maybe you just have to wait for them to prosper. in the first place, you should have been careful in lending money to anyone, even to members of the family.

i also have a problem re this as my name has been dragged in a bad-credit mess because of company delay in issuing checks for a company credit card.

i presume i now have a bad credit history because of this (debts have already been paid, btw, and i paid for the interest/charges out of my own pocket).

I tried to talk to the collector and explained that it was a company credit card and the comp still had not issued me checks to pay for said debts (this happened last November). but the agent told me since it was my name, it would be me who would have a bad credit record!!!! GRRRRR!!!! I am still very angry coz of this!

My personal credit card, however is squeaky clean. I have never paid for a cent of interest/charges since i got one. So can you see how unfair this is?

As for my understanding, this blog is for debt owed by the one who loaned only.

I got a friend who was made a guarantor for a debt. It was for her sister’s boyfriend who wanted to go abroad. For some reason the boyfriend did not continue his application for abroad and disappeared. She wound up paying the debt as she has signed the agreement. So she learned a lesson the hard way, never sign any contract for guarantee unless you are willing to pay others debt. The only help that I gave her was how to make a promisory note to pay the debt and how to negotiate as to how much she will pay every month within her budget.

Again, if you want to be a guarantor ask yourself the some possibilities that might happen. “Am I willing to pay the debt if the borrower…”:
1. has an accident resulting to inability to pay due to loss of income or job, or even dies.
2. disappered, whether intentionally or unintentionally.
3. loses the money and can not find way to pay the loan.

Usually when a person signs as the guarantor they think that the borrower will never abandon their obligation or has full trust with them. But then you have make your own guarantee.

G: unfortuantely, yes, you have a strike against you in your credit record. You gotta pound the table and get that check issued and when you do, you ask the card company to give you a certification that you have paid your obligations. that way, getting back on track is easier.

Zadkiel, great point. This thing is more common than I thought it would be.

On the other hand, I have also seen cases where the borrower has really made good on her commitments and paid her “utang na loob” many years after the generous act. it’s amazing and inspiring to see that in Filipinos.

at the end of the day, you’re right. you have to make your own guarantee.

some people give loan to others as a helping hand. they feel good about it and don’t demand anything in return. others give loan as they value relationship or their image more than money.others especially with extra money give loan as a business with calculated risk. for every loan we give we receive something in return immediate or in the future.but some people give loans expecting all kinds of returns.these are ones targetted by those who have mastered the art of borrowing without paying.it lessens the guilt feelings.unless you are in the lending business, just lend money you can afford to lose.

I really need financial help. I was once a business woman earning exactly what I need. Last year, my business capital was gone because I used money to finance my day to day needs, as you know economic situation here in the Philippines is quite bad……. I borrowed money from different lenders to run my business again, but then the daily earning is not enough to pay for the amortizations. Until the loan amounts went high and tripled up to this time.

I tried to search for a regular job, however, my income isn’t still enough. I don’t want to borrow money again to pay for them because it doesn’t solve my problem. What I really need right now is an amount of more or less $11,000 US dollars or equivalent to Php500,000 Philippine Pesos so that I can be able to pay all my lenders, and from that I will be releived, because everyday that are calling my phone saying bad words to me. I have issued Post dated checks to them but then last month, my account was closed. I’m afraid they would use the checks to sue me to court. I even thought of committing suicide because I don’t know where to get money. I have no more stable income. If this amount will be provided, then I can start a new life, a simple one, to live peacefuly.

@ marj…..

if you don’t have any other resources to rely on…. and credit is really tight….. just declare that you are bankrupt…. anyway, almost all the banks in u.s.a. are at the edge now, if the bank stress test leaks are to be believed