Bismillahirahmanirrahim.

Question, guys. My dad just passed away early this month. We just got to know about his credit card debt. As a daughter and a Muslim, it is my responsibility to help him settle the debt. But the amount is too big for me to settle it in a lump sum. I seriously don't know how to start. Should I approach akpk for help? it is not my debt, but I'll be the one paying. Can akpk still help? or do I approach the bank directly? which one is scarier? can akpk help us deal with reducing the total debt? the debt has been accumulating for more than 15 years! btw, I know we can use harta pusaka to settle it for him, but the only harta he left is the house that we're currently living in and we've no intention of selling it.


I've been good with my credit management. Always paid in full, on time. Currently, I've 2 credit cards and 2 car loans, and I'll be done with 1 of them in Jan 2024. Would getting help from akpk affect my record? my only goal is to reduce the total amount and help settle his debt. I was wondering which party to approach for this matter. I even consider getting help from a trustee, lawyer, etc. but they're quite costly, aren't they?

Credit card debt can pull until so long 15 years?

Not delcare bankrupt already?

your father debt got nothing to do with u but if the house u living now is under your father name then bank will lelong the house to pay the debt ..
if got extra after lelong then u can claimed the extra money but u must prepare to find a new place to live ..
if the house is not under your father name then let the bank contact u n u can nego with the bank with discount

You generally do not have to pay off your deceased dad's debt, because credit card debt does not transfer to next of kin.

Settle your affairs, make sure his harta is allocated to the family, then contact the bank and inform that he has passed on.

They cannot pass the debt to you or your family.

TS, so sorry to hear about your loss ....

Without knowing the actual sum that is owing, the accumulation over 15 years is definitely a serious concern.

My view is better to make an appointment with AKPK first before you contact the bank.

If not mistaken, any debt outstanding by someone who has departed can be charged against the estate / other assets left behind by the bank i.e. the current property is not safe against these bank charges until the debt is settled.

You may also need to standby a Shariah lawyer, just in case.

I seriously don't know. We just found the bank statements while cleaning. and he already retire in 2001/2002, and I've never saw or received a statement before. idk if he did receive it tho.

what does it have to do with being a muslim?
trying to be holy here?

dont think you have to pay off your deceased dad's debt, unless you are inheriting something bigger.

going to AKPK will difinitely harm your credit rating, no more credit cards and in future no more loan for you.

Check his EPF, bank account and insurance if any. Take out whatever money from these sources.

Also, is the house under his name? If not, don't worry. If yes, then need to quickly sell it away before the bank finds out. Once sold, then only inform the bank about his passing.

don't you father had any life insurance? Take the compensation money to pay off the debt if the policy still active.

not at all. I'm trying to put religious pov. hutang wajib bayar walaupun legally, i don't have to. don't assume my intention here please.

you guys are very dirty.

ethically, his harta needs to be sold to pay his debts. and the balance given to his kins...

This post has been edited by john123x: Dec 21 2023, 12:59 PM

https://muftiwp.gov.my/en/artikel/al-kafi-l...e-faraid-system

It is not required legally or religious perspective to pay off deceased debt.

All is required by religion is to pay all the debts with property / estate before distributing the remaining. If there’s insufficient, even mufti say not required.

Unless you’re planning to gain extra pahala, but I still think it doesn’t make sense financially to add this burden when neither religion nor legal is asking for it. But… if you insist no one can convince you otherwise.

My 2 cents… don’t do it if need to go to akpk. And you don’t need to make this decision now since there’s no need legally or religion wise after using all assets under deceased name. Can just use all assets and stall the rest until you have a clear mind and all the rest is settled. RIP for deceased.

did your dad leave behind any assets or estate

it is not the duty of the next of kin to settle the debt of the deceased

you only have to settle the debts of the deceased if there is assets or estate to be distributed

If the house is in your father's name, you must sell it to pay the debt.

It not about moral, it's the law.

Legally no need unless bank going to auction off the current property under your father's name to settle the debt, morally & ethic wise need.

You make the decision.

Why would going to AKPK affect the daughter credit rating ?

She is going there to seek advice for the late father's debt, not her own

Your remarks don't make sense, as the daughter is trying her best to do the right thing, which has got nothing to do with religion

This post has been edited by laksamana: Dec 21 2023, 01:19 PM

As a daughter and a Muslim, it is my responsibility to help him settle the debt. But the amount is too big for me to settle it in a lump sum. I seriously don't know how to start. Should I approach akpk for help?

Not sure if you’re trolling or have comprehension problem.

She is trying to bear her late father’s debt on herself by going to akpk / bank to refinance the debt on herself. Hence it will affect the daughter credit rating when she legally sign to have all these debt transferred to her while using akpk. When it’s not required legally.

Religion has thing to do with it because she is saying it’s her responsibility as Muslim daughter to help him settle hence I included mufti’s response in my last post.

This post has been edited by LaiN87: Dec 21 2023, 01:25 PM

Your dad's assets will used to offset any remaining debts.

Only then it can be inherited.

Not the other way around.

Thanks for the clarification ..

Hence, it is important for the daughter to seek advice first, rather than blindly take on the debt for the sake of taking it on

No need to bring in religion into it, its either you want or dont want to settle only. Eitherway it can not be your problem.

Like someone mentioned, check EPF if got money can use it to settle the debt.

Else contact the bank to make a deal to pay by installment (wirhout interest) 10 years maybe?

Otherwise just ignore and continue ur life as normal until bank do seize and forfiture on the property (if under ir dad name) else nothing will happen

Maybe she wants to help her father becoz even aftear death the debt still has to bear.

No need to be sensitive on religion issue.

Just check with the Bank, for instances some bank offers insurance on full settlement upon death, maybe your father took on that facility and they charged higher interest.

Just before you jump the gun. All the best ts, I settled my parents debt recently.

No EPF left. and no insurance etc. no car. no other bills except for this. and yes, the house is under his name. The house value is more than enough to pay for his debt. but that would mean we have to sell the house. do we HAVE to sell it? if we choose to pay his debt with our own money, can we keep that house? that is the only property he left. and we've been living here for 30+ years. my mom is not that well either. I'm the only one with just enough income to support the family and I would rather pay it like it is my own than sell the house to pay it off. I need help deciding on this. that is why I'm considering all the options i have. akpk is one of them.

I'm still trying to grasp things. and I'm honestly lost. Thank you everyone, for your input.

AKPK is a govment agency, you can approach them for advices/financial counseling before signing up anything.

But first resolve the transfer the house ownership first. You can approach jabatan harta pusaka kecil for further legal advices on both the house and debt issues. They have legal counselors where you can ask them concerning these matters and procedures in transferring the house ownership.

My best advice to you is to seek a lawyer's service, if you have a family lawyer ask them instead. Here can only offer you mostly unverified suggestion and you don't want to run around headless with all the given suggestion. Only a law firm relating to debt and credit allocation can answer your question legally in the context of law.

Ts naughty haha use religion under pretense when just want to keep house under deceased name. 😂

Sell car for cash settle loan is da best option imo

Please stop pointing finger at TS for bring up religion matter. It is important in the context of inheritance as the estate administration and distribution law is different between muslim vs non muslim.

Pay minimum amount every month

can check with bank 1st if it still in debt else check with akpk for advise

TS, if the intention is sincere, hat off for you. May your next generations be blessed.

Try do this. Complete the house ownership title transfer 1st. This will be your bullet for financial options.

Once the house title transfer is completed, you have this option when talking to the bank.

1) Option 1 - if you can afford to repay without touching the asset, pay it using your monthly income. Usually not advisable & only feasible for small debt amount. Please note, CC % is the highest interest rate out there among all the instrument. You must get away from this cc %.

2) Remortgage the house which you have completed the title transfer to your name. Just take out the sum you needed to pay off the debt - you can easily get 6 digits & I think bank will only interested for this option if the figure hit 6 digits. Remember - housing loan is the cheapest / lowest rate out there in the market. The BLR is -ve. After that you can repay monthly the sum you have drawn up & more comfortable loan duration & monthly commitment.

This post has been edited by nihility: Dec 21 2023, 02:32 PM

No ts isn't trying to be holy. A muslim's debt doesn't resolve when you die. It has to be settled on your behalf by somebody/anybody. Unless the party foregoes the debt. At least this is what i've been made to understand.

People sometimes mirror themselves too much

refinance the house and use the money to pay off the debts

15 years long of debt? interest + interest is a very huge sum there, the only thing you can do is check if there's EPF left from him. Clear it off with his EPF and only distribute the rest.

Like what other /k said, if the property is under his name, bank will have the right to lelong it off, clear the debt and only giv the balance to your family.

So first thing to do is check if his epf balance is able to clear off the debt, if not just go to bank and ask. Normally they're able to help and give you a contract to make the repayment throughout few years which stated in the contract I think.

If above still not able to solve it, only go look for akpk and see if can help.

Why no tell debt amount and house value?

if your dad got any assets or FDs etc ..gov will take it to clear all debt including LHDN debt before giving start to distribute according to will


i would recommend you consult your lawyer

This post has been edited by fantasy1989: Dec 21 2023, 02:51 PM

You want to pay, bank will not give details on the debts to you because it is not your debt and happily charge interest on it.

You as waris can go pejabat tanah for tuntutan and appoint your self as wasi (administrator). You really need to compile documentations belongs to your father to estimate what is the value of his net assets after debts. Excess will be faraid to waris. A lot of work. Read up a bit la. Process not same with non-muslim

https://loanstreet.com.my/ms/pusat-pembelaj...orang-meninggal

https://www.jkptg.gov.my/index.php/my/permohonan-pusaka

Finally someone said the right thing.

But not just house right? any asset (car, savings, bonds, etc) under father name, bank can sell it to offset the debt.

Sorry for your loss and hope you get to sort things out

1. Refer to bank, report to bank by bringing the death cert
2. Talk to bank you would like to pay for settlement and ask for reduce interest.
3. Prepare for the tax and lawyer fees as you inherit the house (if there's a will, share among your siblings.)
4. Speak to bank to refinance which convert credit card debt to home mortgage.

please dont identify yourself to bank as next of kin or divulge your details or pay the debts until you get your Letter of Administration (LA)

Just inform the bank that you need the latest statement of account for the family to get LA.

Repeat this : I am the family of deceased. We need the latest statement of account before courts appoint admisnistrator.

This post has been edited by SerioseCat: Dec 21 2023, 03:41 PM

Credit card debt is unsecured lending.

There is no guarantor concept

Once the user
Deceased, it is consider written off/hapus kira. It does not effect any other family member credit record.

However, if you decide to slowly pay off the debt as a muslem. Pls consult
Your nearest bank. Maybe they can mego for an instalment plan.

just transfer the house name to you..and the let it be..no need to think about debt.

Fuhh.

What did you late DAD do with the money until no longer available inside EPF?

This post has been edited by xpole: Dec 21 2023, 03:46 PM

Then the direction is clear.

Summary:
- debt is a lot and hard to clear under your name in order to keep the house.
- house is under late father’s name and fully paid off.
- house value sufficient to cover for debt
- insist on keeping the house and not selling.

Best Direction I believe:
- Complete the house name transfer as per procedure. Shouldn’t need much legal fees for this.
- Mortgage the house, then use the amount to lump sum to clear the loan.
- it’s better to use house loan rather than any personal loan or akpk. Use flexi or semi flexi loan to reduce interest rate after using and ensuring all debt is cleared. Extra cash loaned dump in back to the loan account.

Query:
- how Muslim divide the property. After dividing, is there issues trying to get house loan mortgage with so many parties involved.
- will the official process allow for property to be transferred with debt still active. (Is it allowed religion wise)
- will TS have enough credit to allow property mortgage to cover the full debt amount. (Or will even TS be part of the name of the owner of the property to have a mortgage under her name)

This post has been edited by LaiN87: Dec 21 2023, 03:51 PM

House will be faraid to your mom, your father’s children and your father’ parents (your grandma / grandpa) if they are still alive.

If you father have no son (meaning you & your siblings all girls), mean there is no waris lelaki, your father’s siblings have share of fariad



https://solusikini.com/pembahagian-harta-pu...secara%20faraid.

This post has been edited by forgotoldlogin: Dec 21 2023, 04:00 PM

U cant complete hse transfer without settling the debt. Bank will not allow it.

Biggest problem u stated d..property division amongst the family.

In the first place TS, have you checked whether this credit card debt is still active?
Since you said you found some old bills/statements while cleaning up. Maybe your father paid it off after he withdrew his EPF?

Cos 15 years is a long time for the bank to still be keeping the debt. Usually it's written off after 7 years.
And why hasn't Debt Collector come to house to chase your father to pay when he was alive?

I know cos many years ago when I was retrenched, I
couldnt pay my credit card debts. It was during economic downturn.
When I finally got a new job, I paid back a little. Then, when I could afford to pay back lump sum, the bank told me the account no longer available( means they had written it off.)

So, better check the credit card number if still active 1st

This post has been edited by eaglehelang: Dec 21 2023, 08:25 PM

Can you apply credit cards thereafter?
car loans, housing loans?

Yes, no problem to apply credit card & loans
But take note this is like 20 years ago. It was my 1st credit card

just do it like P&L

credit:
he got any fully paid off cars or house, money in bank, investment and EPF?

debt:
put that against the debt.

credit more then dun worry let it sort out unless u worry bank lelong the house?

best to discuss with bank, not akpk. they can give discount provided you can settle the full amount. can oso request for installments. not sure if bank can extend long term, when term end, need to settle it in full, but you will save a lot. as example, owe 50k, but actual principal 20k. bank may offer full settlement of 30-35k. save 15-20k!! can temporary sell off one car, provided ada resale value. can always buy another when all settled...

Sebab in islam, hutang wajib dibayar. Even u hutang RM1. Sebelum solat jenazah muslim, imam akan tanya, siapa ada hutang dengan si mati, boleh jumpa waris untuk tuntut. Kalau the penghutang halalkan, its fine.


To TS, maybe go see a proper channel instead of asking here. Go ask syariah lawyer /ustaz versed with faraid / debt issue.

All the best.

This post has been edited by MegaCanonF: Dec 21 2023, 08:18 PM

This also. Better go check with the bank. Mana tau actually sudah paid. Go ask what is the status. Then can plan from there.

juz call akpk and see what they have to say.

is your mom still alive?
if yes, then the house is not 100% pusaka since she can claim harta sepencarian on it. after minus her part only can the rest be considered for faraid so you have to consider this part as well in coming up with a solution to clear the arwah's debt

better go see a shariah lawyer

Muslim got a saying if don't settle debt after death, he will be suffering in afterlife.

So those bankrupts who died will go to hell cos u don't suffer in heaven?

Please update us once you check with bank for the loan/hutang status

I believe it is just old bank hutang statement. Ur father done paid all of it

Bank forgave the debt. Literally.

well bank also go after the house

Just want to repeat what others have already said. You are not liable for your father's debt.
1. Settle what you are legally obliged to do

2 . Then settle your religious requirements.

Don't mix the two.

That cannot be inherited.. The bank need to absorb it or write it off

-

This post has been edited by loserguy: Dec 23 2023, 11:01 PM

By law. You don't have to pay. Just forget about it and move on. Or just donate the sums owed periodically to charity.

Legally you have to, regardless of your religion

I've read all the replies and input. I will seek Syariah's lawyer for consultation and advice as soon as I can. I'll try to post the updates later. InsyaAllah. Thank you everyone.

Finally remember to give an update.

I contacted the bank directly. Let them know of my dad's demise, his outstanding debt and my intention to help him settle. I explained my situation and request for leniency and reduction of the total amount.

So, everything is good now. Tak payah pening2 fikir lawyer apa semua. Approach the bank 1st, and dapatkan settlement amount. 😅

I thought after didnt pay for more than 7 years, consider GG already?

hi,

if got harta want to divide like faraid, so hutang also get the faraid member to help!

are you only the child?
do your father have other siblings, if yes ask for their help.
basically just go to the bank, nego elok-elok... maybe bank can waive the interest and only pay the pokok...

How much they reduced?

She/he offered to pay. Then of course bank accept lor

just came across this thread..surprised to see many naïve response..Credit card and personal loans, if you die, the debt dies with you..there will be provision to write it off..dont be stupid to get your kids/spouse to settle it off..
car and housing loans are different of course..

glad things worked out.

can share how much did the bank reduce?

but ts chose to help her father to clear the debt... bank also happy

A lot. From 45K, to only 9K. At 1st they propose half. But that is still too much, so i ask if it is possible to make it lower. Then they offered 9K as full and final amount.

The debt memang GG the day the father passed on.

TS wanted to pay it off as part of her moral obligations rather than legal side. Nothing wrong with that.

Banks of course happy, better than zero.

hmm good.

but you know you dont have to pay right?

furthermore there is Stature of Limitation Act, which means after 6 years no action the debt will be written off.

i'm not the only child, but I'm the only one having the capability to pay. He only have one sister left and she already waive her rights for faraid share. But all is good. Thankfully the bank accept paying in installments even after reducing the total amount.

I did ask around before deciding to. And yes, i decided to pay for a peace of mind. Maybe i should have ask for a full waiver instead of a reduction. 😅

That's a lot

Glad it worked out for you

This post has been edited by GTA5: Apr 3 2025, 01:01 PM

But how does bank recover it's losses?

Is it possible that a person just Yolo and take up as much cc card debt as possible, then just gg, knowing that the debt will not be passed on?

Just wondering

The bank can go after and claim from his estate. If it's not enough, then have to write off.

TS is too honest as RM45k is nothing to these banks lol. For those wondering, yes, you have the right to ask the bank for the full waiver - worse thing they can do is request for the deceased’s estate to make a settlement but that would take some time.

This post has been edited by mataharih: Apr 3 2025, 01:20 PM

TS just became water fish by paying 9k to the bank when on paper he doesn't really need to. Don't know why you did that bro when all of us have given you sound advise and you still went ahead to pay for it.

What for u open thread asking?

This post has been edited by Avangelice: Apr 3 2025, 01:30 PM

Correct me if I’m wrong..this is absolute bs..CC is unsecured lending

This post has been edited by youngblood29us: Apr 3 2025, 02:05 PM

Those losses are immaterial..write off 30-40k against billions of profit has no impact..it’s not like daily people are dying with outstanding cc debts..

Also to add the amount of interest they gained from your outstanding debts..Net impact is still positive

This post has been edited by youngblood29us: Apr 3 2025, 01:58 PM

Probably related to his faith as muslem

The banks can go after the person's estate.

Technically you can YOLO and die with your debt not passed to your kins. But, that also means you wouldn't have any estates to be claimed upon, and if you don't have estates to do so, then the banks wouldn't have given you a card.

You have a misunderstanding about unsecured debt. While it's a debt without collateral, the creditor can still go after the deceased's estate.

Even if someone lent RM1k personally to the deceased, he too can go after the estate if he has proof.

This post has been edited by poweredbydiscuz: Apr 3 2025, 02:35 PM

If bank goes through estate and claim the house?

Plus she mentioned that she did it out of peace of mind
To some, it's more valuable.

Right. Pay corpo money that they don't even want or need whilst not have enough income for a rainy day.

What if estate is transferred to spouse much earlier? So I don’t think there’s basis to go after estate

In addition what I’m trying to say is banks cannot get back money from kids or wife..they are not obliged to pay

This post has been edited by youngblood29us: Apr 3 2025, 02:44 PM

The executor/administrator should not transfer the estate to the next-of-kin before settling the debts.

Of course we all know that the bank cannot go after the kids and wife. I'm talking about the deceased's estate.