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Bankruptcy: Can't withdraw EPF age 55?
2414 Views  ⚫  Asked 8 Years Ago
asked on Sep 19, 2008 at 18:39
by   Miss Lau
edited on Dec 28, 2016 at 01:18
 
My father aged 54 now and facing bankruptcy soon. Since a bankrupt person can't have bank account, surely he will not able to draw his EPF after age 55. Can he put my name as beneficiary? Hoping that when he has passed away, I still manage to take over his fund in the future and take care of my mum. Will the bank or Bank Negara (BNM) seize his EPF contribution?

Really need some one advice...
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answered on Sep 20, 2008 at 00:10
by   Jeffery
edited Dec 28, 2016 at 01:26
 
When your father reaches 55 years of age, he can withdraw in cash his EPF funds with the Insolvency Department by submitting a bankruptcy declaration letter. So don't worry!
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answered on Sep 20, 2008 at 17:30
by   miss lau
edited Dec 28, 2016 at 01:27
 
@Jeffery,

Please explain in more detail, what is the meaning of "bankruptcy declaration letter"?
how & where to apply?

You mean my father can withdraw his EPF at age 55, how come?
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answered on Sep 21, 2008 at 00:10
by   Jeffery
edited Dec 28, 2016 at 01:30
 
The "bankruptcy declaration letter" is a letter confirming such person is a bankrupt and it is issued by the Insolvency Department (Jabatan Insolvensi Malaysia). So since your father is not allowed to hold an account with any bank, the banker will cash the cheque to him.
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answered on Sep 23, 2008 at 18:15
by   miss lau
Thanks a lot of your valuable information, it's really cheer me up a lot !

If my father was not sue bankruptcy, but only black listed then how ? I knew that he can withdraw EPF but without a bank account also useless, your advice please ......
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answered on Sep 23, 2008 at 19:19
by   Jeffery
edited Dec 28, 2016 at 01:43
 
If your father is blacklisted only, that it is even easier because he can't get a loan but can open savings account with other banks. The banker can't take action against him without a court order. So what's your problem?
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answered on Sep 23, 2008 at 20:58
by   Cynthia
edited Dec 28, 2016 at 01:46
 
@Jeffery

Some questions to ask you:

(1) You said once getting the bankruptcy letter from the Insolvency Dept, a bankrupt can cash the cheque (EPF money) at the bank. I thought the Insolvency Dept has the right to withhold the cash money to settle the bankrupt's debts first and if any balance, then it is given to the bankrupt. Is this true?

(2) I am now owing a bank RM20,000 and am sued by the bank to attend court some time next month. What are the possible court judgements on me when I attend? If I tell the judge I can only afford to pay RM30 every month to pay my debt, will the court accepts it? If I say, I can't afford at all, what is the judge going to do with me? Please advise. Is it good to attend the court? Thanks a lot, Jeffery. You have been helping many people who are desperate to know the correct answers.
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answered on Sep 24, 2008 at 16:00
by   Miss Lau
edited Dec 28, 2016 at 01:49
 
@Jeffery,

I called EPF Board asking about if my dad is black listed only, they told me that if he is black listed by Bank A, he can still open a new account with Bank B, then he can withdraw EPF and bank-in. Is that true?

Your urgent advice please ....
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answered on Sep 24, 2008 at 16:49
by   Jeffery
edited Dec 28, 2016 at 01:55
 
YES, as advised by the EPF, if your father is blacklisted only it will only affect future loan application such as housing loan, car loan or personal loan. Since he is not a bankrupt, the banker can't take action without a court order.

Just make sure he does NOT bank-in the cheque into an account with the creditor's bank (bank he owes or bank that blacklist him) otherwise the bank will deduct the total to pay the debt.
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answered on Sep 24, 2008 at 17:10
by   Jeffery
edited Dec 28, 2016 at 02:11
 
@Cynthia,

Q 1. Bankruptcy has NO effect on your EPF funds.
Q 2. You had to attend the court, DON'T worry NO jail term. Your payment proposal is subject to banker's acceptance. If they do not agree on such payment, they may request for higher monthly payment based on your salary slip or proceed with petition to court to sell off whatever properties you have under your name to cover the debt.
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answered on Sep 24, 2008 at 18:18
by   Miss Lau
Dear Jeff,

From your information given above, proof that you're really experience in this case not like others just add more miserable & blur answer. It really helps to solve my present problem and I can sleep well tonite.

Thanks a lot, we really need some one like you to give us honest answer & helps, thanks again.
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