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05-12-2010, 05:05 PM
This is a case of "you die already, they still won't let you off!". Quite sad for this man to be made a bankrupt even after he passed away. 
Dec 4, 2010
Man declared bankrupt after his death
[i]Court case throws up question of whether debts can be recovered[/i
By K. C. Vijayan, Law Correspondent
DBS BANK went after a debtor in court and got him declared a bankrupt in the middle of last month - only to find out he had died about six months ago.
The debtor, China-born businessman Wang Sam Lin, 60, died in Tonga in May this year from complications related to throat cancer, according to a copy of a death certificate issued by Tonga's Health Ministry.
The case raises a couple of interesting issues.
Lawyers say a dead man's debt does not die with the person, even if he has been declared a bankrupt, as the monies owed can be paid from his estate.
'Debts incurred in person by the deceased cannot be sued upon but what creditors will do is to sue his estate,' said lawyer Mark Goh.
This happens when the next of kin of the dead man applies to court for a probate to administer his estate and personal wealth. A creditor would then give notice by lodging a caveat in court against the estate of the dead man.
The estate administrator, tasked with distributing the proceeds of the dead man to his next of kin or in accordance with the will, will have to see that the debts are cleared first before distributing the remainder among the beneficiaries.
But the consequence of a dead man being declared a bankrupt may not be fully clear until settled by a court.
This is because when a person is declared bankrupt, the Official Assignee's Office takes charge of his assets for distribution to creditors.
'An interested third party may have to apply to the court to set aside the bankruptcy order that is irregular - in this case, a dead man being made bankrupt - and then serve the order on the (Official Assignee),' reckoned lawyer S. Karthikeyan.
Bankers told The Straits Times that while this is rare, it was not inconceivable that DBS ended up trying to recover a loan from a dead man.
This is because a bank is not informed of a customer's death until his next of kin or solicitor contacts the bank.
In some cases, where instalment payments cease upon death, a bank may try to contact the customer. This is typically when it learns of his or her passing.
Said an OCBC Bank spokesman: 'We will (then) verify the information by requesting the customer's next of kin to visit the nearest OCBC Bank branch with a true, certified copy of the death certificate.'
A DBS spokesman said yesterday that the bank sought many ways to reach Mr Wang for repayment, since the amount owed was quite substantial and the loan had been in arrears since last year.
'The bank then served a statutory demand on him in May this year. There was no contact from any family or next of kin to update us of his status.
'Going forward, the bank shall assist once an executor or administrator of the late Mr Wang's estate is appointed.'
At least two other creditors have already gone after Mr Wang's estate.
One of the creditors, OCBC, obtained a court order for repossession of a condominium unit in Bukit Timah, following a mortgage default.
In the second case, the lawyer acting for prize-winning horse trainer Steven Burridge went after Mr Wang, who had lost a suit against Mr Burridge last year over the treatment of a race horse Mr Wang owned.
Justice Judith Prakash had ordered that Mr Wang pay the cost of the suit against Mr Burridge.
In a bid to recover the monies, Mr Burridge's lawyer S. Karthikeyan last month obtained court approval to serve an order on Mr Wang's representative, such as his wife, to lay claim to whatever can be salvaged from Mr Wang's estate.
According to court documents filed by DBS to support the bankruptcy application, Mr Wang had lived in Singapore for at least a year at a condominium unit in Bukit Timah Road.
He owed some $148,441 to DBS, which served a formal demand for repayment by pasting the document on the front door of the flat.
vijayan@sph.com.sg
Additional reporting by Yasmine Yahya
Dec 4, 2010
Man declared bankrupt after his death
[i]Court case throws up question of whether debts can be recovered[/i
By K. C. Vijayan, Law Correspondent
DBS BANK went after a debtor in court and got him declared a bankrupt in the middle of last month - only to find out he had died about six months ago.
The debtor, China-born businessman Wang Sam Lin, 60, died in Tonga in May this year from complications related to throat cancer, according to a copy of a death certificate issued by Tonga's Health Ministry.
The case raises a couple of interesting issues.
Lawyers say a dead man's debt does not die with the person, even if he has been declared a bankrupt, as the monies owed can be paid from his estate.
'Debts incurred in person by the deceased cannot be sued upon but what creditors will do is to sue his estate,' said lawyer Mark Goh.
This happens when the next of kin of the dead man applies to court for a probate to administer his estate and personal wealth. A creditor would then give notice by lodging a caveat in court against the estate of the dead man.
The estate administrator, tasked with distributing the proceeds of the dead man to his next of kin or in accordance with the will, will have to see that the debts are cleared first before distributing the remainder among the beneficiaries.
But the consequence of a dead man being declared a bankrupt may not be fully clear until settled by a court.
This is because when a person is declared bankrupt, the Official Assignee's Office takes charge of his assets for distribution to creditors.
'An interested third party may have to apply to the court to set aside the bankruptcy order that is irregular - in this case, a dead man being made bankrupt - and then serve the order on the (Official Assignee),' reckoned lawyer S. Karthikeyan.
Bankers told The Straits Times that while this is rare, it was not inconceivable that DBS ended up trying to recover a loan from a dead man.
This is because a bank is not informed of a customer's death until his next of kin or solicitor contacts the bank.
In some cases, where instalment payments cease upon death, a bank may try to contact the customer. This is typically when it learns of his or her passing.
Said an OCBC Bank spokesman: 'We will (then) verify the information by requesting the customer's next of kin to visit the nearest OCBC Bank branch with a true, certified copy of the death certificate.'
A DBS spokesman said yesterday that the bank sought many ways to reach Mr Wang for repayment, since the amount owed was quite substantial and the loan had been in arrears since last year.
'The bank then served a statutory demand on him in May this year. There was no contact from any family or next of kin to update us of his status.
'Going forward, the bank shall assist once an executor or administrator of the late Mr Wang's estate is appointed.'
At least two other creditors have already gone after Mr Wang's estate.
One of the creditors, OCBC, obtained a court order for repossession of a condominium unit in Bukit Timah, following a mortgage default.
In the second case, the lawyer acting for prize-winning horse trainer Steven Burridge went after Mr Wang, who had lost a suit against Mr Burridge last year over the treatment of a race horse Mr Wang owned.
Justice Judith Prakash had ordered that Mr Wang pay the cost of the suit against Mr Burridge.
In a bid to recover the monies, Mr Burridge's lawyer S. Karthikeyan last month obtained court approval to serve an order on Mr Wang's representative, such as his wife, to lay claim to whatever can be salvaged from Mr Wang's estate.
According to court documents filed by DBS to support the bankruptcy application, Mr Wang had lived in Singapore for at least a year at a condominium unit in Bukit Timah Road.
He owed some $148,441 to DBS, which served a formal demand for repayment by pasting the document on the front door of the flat.
vijayan@sph.com.sg
Additional reporting by Yasmine Yahya
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