I applied for a salary loan through a private bank. When I resigned, the company was able to deduct the pending balance from my last pay but it was not enough to cover the remaining balance. From then on, I did not hear from the Bank and did not receive any late notice payments until early this year I got a summon letter.
I called the bank and negotiated if they we can settle the amount and not bring it to court anymore. I requested if I can pay in terms since I will not be able to pay the full amount yet. They agreed and we were in negotiation for several weeks. They agreed that I can pay the remaining balance plus the 1% penalty charge every month, payable in 1 year. I was asked to prepare the PDCs so that once the "negotiated terms" is approved, we can settle it right away.
I asked them if I still need to go to the hearing date which was May 3. They told me not anymore and I just needed to sign an agreement and they will be the one to present it to court. The thing is, after all the negotiations, they did not get back to me on anything. I was also busy back then and was not able to follow up. I did not attend the hearing since I also never got a word from the bank. I got a letter last month notifying me that the case is already dismissed since both parties did not attend.
My concern is, I am trying to apply for work abroad and in the plans of migrating as well. I tried getting a COE from my previous employer and told me that they won't be able to release one unless they see a receipt from the bank saying that I have cleared my pending balances. They told me that they can release one but with a disclaimer that I am not cleared yet due to an unpaid debt. Will this affect my applications? I am a bit afraid to call the bank and ask as they might ask me to settle the amount once again which I don't have the financial capacity at the moment. If the case is dismissed, will my unpaid debt be cleared as well? Also, I know that an unpaid debt is a civil case, but I just want to confirm also if this will have an effect should I get an NBI clearance?
Thank you so much in advance for your help!