A cautionary tale regarding defaulting on mobile phone payments totaling over 30,000 baht. After failing to make payments, the debtor was sued in court, resulting in the seizure of land and its auction. A seemingly minor issue escalated into a significant problem, similar to unpaid common fees in condominiums, which can also lead to legal action if not paid.

Many may have heard the news about a young woman from Phrom Phiram, Phitsanulok, who defaulted on her mobile phone payments totaling over 30,000 baht, with just over 10,000 baht remaining. She stopped making payments and was subsequently sued by the creditor, leading to the seizure of her land and its auction, causing her distress.

Although this debtor claimed that her father, who received the court summons, could not read, and thus she was unaware of the legal proceedings, she and her husband had been unemployed and lacked income to cover the overdue mobile phone payments. It was later revealed that the creditor, as per the court's ruling, had requested the court to enforce the sale of the land to recover the remaining phone payment owed to the creditor, who was legally entitled to it.

Ultimately, the Phitsanulok Enforcement Department intervened to negotiate a solution for the debtor with the new landowner who had won the auction. How much assistance could they provide?

A fundamental truth in this cautionary tale is that when a debtor owes a creditor under a contract, the debtor is obligated to repay the debt. If the debtor fails to pay, the creditor can exercise their legal rights to compel the debtor to fulfill their contractual obligations at any time.

However, if the debtor is ordered by the court to repay the debt and fails to do so, the creditor can request the court to enforce the seizure of the debtor's assets for auction to recover the debt owed to them. Any surplus from the auction proceeds, after settling the debt and interest, will be returned to the debtor.

Excuses from the debtor, such as not receiving the summons or the enforcement order from the court, or claiming that the debt is less than the value of the seized property, or suffering hardship from the sale of the property that leaves them without housing or income, are all invalid and unconvincing.

The above issues are not much different from the condominium system under the Condominium Act. When a buyer and seller of a unit in a condominium are co-owners, everyone is obligated to pay common fees, fund contributions, utility service fees, or other special expenses, including late fees, as stipulated by the regulations or resolutions of the general meeting of co-owners, as outlined in Sections 18 and 40 of the Condominium Act. The management must use these funds for managing common property and providing services to co-owners.

Co-owners cannot use excuses for not paying common fees because paying these expenses as demanded by the management is a responsibility that all co-owners must fulfill. However, co-owners can exercise their rights under the regulations to take action against the management or pursue legal action as they see fit.

Therefore, once the management sends a notice for payment of various expenses to the unit owners, they are obligated to pay these expenses to the management within the specified time. If they fail to do so, they may incur additional charges or face legal action from the management.

If a unit owner is ordered by the court to pay the expenses as per the lawsuit and fails to do so, once the case is finalized, the management, as the plaintiff, can request the court to issue an order to seize and auction the personal property, including the unit, to settle the debt owed to the management. Any remaining funds from the auction will be returned to the co-owner or the new owner of the personal property.

If the mobile phone creditor does not exercise their legal rights to sue the debtor, they will suffer damages, which may lead the debtor (or multiple debtors) to consider defaulting on their debts. Similarly, if the management does not take legal action against co-owners who owe fees, they will suffer a loss of income necessary for maintaining the common property as per the regulations and the Condominium Act, and other co-owners may follow this poor example.

Nonetheless, both mobile phone payments and common fees can be negotiated between the debtor and creditor before the court issues a ruling, including debt reduction or installment payment arrangements as appropriate.

However, once the debtor becomes a defendant in court, they should not fail to appear or comply with the court's ruling. If the plaintiff requests the court to enforce the sale of the debtor's assets, the relevant authorities may not be able to assist the debtor as per the court's ruling.

SOURCE: www.bangkokbiznews.com