Teachers warned of serious consequences for debt default 

Teachers who have threatened to stop servicing their debts to the Government Savings Bank were warned that they could face serious consequences, including the prospect of being declared bankrupt by the court.

Deputy justice permanent secretary Thawatchai Thaikhieu on Tuesday posted his opinion on his Facebook page in response to an online video clip featuring about 100 teachers gathering to make a declaration demanding the government and the GSB to provide about 450,000 teachers who took loans from the GSB under the funeral welfare fund scheme six-month debt moratorium starting October 1.

They also threatened to stop repaying their debts to the GSB starting August 1.

Mr Thawatchai said that teachers who refuse to honor their debt repayment commitment could face the prospect of facing bankruptcy lawsuits if the amount of their debts is beyond one million baht.

Worse still, he said their guarantors would be in trouble as well as they might also be slapped with bankruptcy lawsuits if they could not come up with debt repayments on behalf of the debtors.

Mr Thawatchai also warned that if any teachers were declared bankrupt by the court, they could lose their teaching jobs because, according to the law, a bankrupt person is not qualified to become a teacher.

He further clarified that a person declared bankrupt by the court will have his/her freedom of movements and right to undertake legal transactions restricted.  For instances, they cannot perform any legal and financial transactions; are banned from travelling abroad unless there is a permission from officials of the legal execution department.