What to do with debt if retrenched

qbo007 — Mon, 19 Feb 2018 00:13:55 +0800

Is it possible to change the monthly repayment amount of:

1) Home Loan ?
2) Overdraft Limit Reduction ?
3) Credit Card Fixed Repayment Schedule ?

My father was retrenched from his job as salaried employee 2 months ago and he decided to start his own business. However the earnings are very low compared to when he was a salaried employee and we could not afford the original monthly repayment amount anymore.

In case anyone here get confused with the Overdraft Limit Reduction, basically it was because my father always maxed out the Overdraft limit given (paying only interest every month, the principal never reduced before) and since my father is getting old (59 this year), the bank determined that giving out OD facility to my father is high risk and therefore decided to reduce the Overdraft limit every month, gradually taking away the OD facility from my father at the end.

My main concern is because my father has just started his business, he can't even tell how much he is able to pay back to the bank every month. Not like salaried employee.

And lets say for example I request for 20%~30% of original installment amount, will bank even consider? Or will say bye and lelong my house? (OD is secured by the house, only Credit Card is unsecured but then, all of them are from same bank)

Considering that my father's age is old, I am afraid that bank won't give my dad so much time to repay his debt.

What should we do at this moment? AKPK? Any better solution?

If resort to AKPK, does AKPK provide restructuring for overdraft? I know for Credit Card and House Loan yes.

If lets say really go to AKPK, will my siblings PTPTN application affected? My siblings will be going to uni next year. Can my father still be a guarantor if my father enrolled into AKPK?

Please don't ask me to borrow from relatives to sort this out. Last time my father was in deep financial trouble and borrowed from relatives, until now also havent pay back. All of my relatives already decided to cut relationship with my family.

And no, I am still in uni, and I am the eldest one, so no siblings to help out as well.

Edit:
Many has advised me on selling house to get cash to settle the debt. However, my 1st thought is that to sell the house seems not worth, because the remaining balance is 30k+, installment is 700 /month. Plus, the OD reduction is also around 700/month, balance also 30k+. The market value of the property, as I did my survey in Mudah, is around 300k. The credit card debt balance is only 4k, installment 500/month.

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What to do with debt if retrenched