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Finally discharged from bankruptcy! Thank you everybody for advice

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asked on May 1, 2016 at 06:07
by   Lindane
edited on May 23, 2016 at 09:31
 
After almost 10 years of being a bankrupt, I am now free!

I would like to say A BIG THANK YOU for all the help I gained from reading the pages here. Although I never posted a question before, as a silent reader, I would diligently read and picked up valuable information in almost every post. 

I used the sample letter provided by Pening to ask for a discount from the banks. It worked great as the banks responded with big discounts for me allowing me to make full settlement via Jabatan Insolvensi Malaysia (JIM). I wish I have taken notes on whose advice I used to help me throughout the years, but the name Jeff seems to be the only one I can think of now. The rest of you whose name I can't remember, thank you too.

A brief recap of my bankrupt years:
2006 - declared bankrupt by MBf Finance for cc nonpayment but did not realise it until one of my bank accounts was closed. Fortunately, salary account then was still okay so continued as usual.

2012 - finally surrendered to Jabatan Insolvensi because I was starting job at a new place and needed to open an account for salary. Also started making monthly payments to Jabatan Insolvensi via standing instructions (condition was set by Jabatan Insolvensi for permission to open account).

2015 - began negotiations with banks who submitted their claims to Jabatan Insolvensi (only 3 - I declared more but the others didn't submit)

2016 - managed to get the funds to pay all 3 banks + JIM fees. After reading posts from Mahen, Rayna & Freeman, I decided to find a lawyer to do my discharge. Attended the hearing and heard the most beautiful words "the annulment application is approved".

I have not checked my CCRIS and CTOS reports yet, but I have checked the immigration website and my status already says "TIADA HALANGAN." No plans to go overseas yet, but it's good to know now I can.

Through the posts I read here, I was more accepting of my status as a bankrupt then. I was lucky to still be able to work and earn a regular salary. I didn't have any assets in my name except for an old car which was fully-paid. Jabatan Insolvensi lets me use the car up till today.

I did ask my lawyer what about the other banks that I owe money to but did not submit their claims to Jabatan Insolvensi. According to him, based on the amount of time which had passed, he thinks that there is little chance it will resurface but if they do come back, I have a good chance fighting them. Let's hope he is right!

So, I guess what I am trying to say here is that it is NOT true that being a bankrupt is the end of the world. I discovered that the myth a bankrupt cannot work is not true. I worked all throughout my bankruptcy and though I grumbled about the amount I had to pay monthly, it led me to be able to make full settlement. I was lucky that my work do not require me to travel overseas so I did not face that problem.

Yes, my life did change when I was declared a bankrupt. I took vacations locally. I could not progress as much as I could have in my career because I was trying not to rock the boat too much. I took better care of my old car because I can't buy a new one on loan. And the biggest lesson I learned was how to manage my finances and to live within my salary.

To all of you still struggling with bankruptcy, please do not give up. I didn't think I could survive this 10 years ago, but I did. It's a wonderful feeling and I want you to experience it too.

P.S. I still pray that the auto discharge will be enforced soon because everybody deserves a 2nd chance.

P.P.S. To the Avengers, keep on fighting the good fight!
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answered on May 6, 2016 at 19:09
by   hassan
edited May 23, 2016 at 09:52
 
@Lindane

1. Did the Insolvency Department of Malaysia (MID) force you to come to make the payment?

2. If you do not mind sharing, how's the process of dealing with MID initially?

3. A deduction of 10 per cent, it sounds scary... too much... Can you help me on how to list the expenses in detail? It will help me a lot.
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answered on May 7, 2016 at 04:06
by   Lindane
@alimamak,

From what I read here, a bankrupt cannot own a business under their name. But some still do it under somebody else's name. I am not sure how that works.

I'm sorry but I can't offer much help on this because I did not own a business. Maybe the others here can help you.
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answered on May 7, 2016 at 04:57
by   Lindane
edited May 24, 2016 at 03:34
 
@hassan,

To answer your questions:

1. Did the Insolvency Department of Malaysia (MID) force you to come to make the payment?

Insolvency never forced me to come to them. In fact I managed to "hide" from them for about 6 years because somehow my salary account then was not closed (really don't know how that account "escaped"). But then I managed to find another job and wanted to do it properly, so I went to see them on my own free will. One of the reasons was because I accompanied a friend who was also declared bankrupt to report to Insolvency and saw first hand the procedure wasn't that bad. And I was getting tired of hiding and living in worry all the time.
 
2. If you do not mind sharing, how's the process of dealing with MID initially?

I just went to the Insolvency office that handled my case, went to the counter and said that I wanted to report myself in. They gave me a lot of forms to fill in, told me who was the officer in charge of my case and made an appointment to meet the officer in a few days time. I filled up the forms, got the necessary documents together (eg. bills and receipts to support my expenses statement), got the forms signed by a commissioner of oath and went for my appointment.

During the appointment, we agreed on how much my monthly payment would be and received a letter to open a bank account. I also had to write a letter to the Pengarah asking for permission to accept the new post as the designation was as Manager. If designation is just Executive, no need to ask for permission.

3. A deduction of 10 per cent, it sounds scary... too much... Can you help me on how to list the expenses in detail?

When I did my expenses list, I listed everything including money for parents (no receipts though), rent, utilities, mobile phone, car expenses (petrol, toll, parking, insurance, road tax and maintenance - my car was paid in full already), groceries, kids school fees and anything else I can think of then. In the end, my total expenses  was more than my salary 😋. Still they won't let me negotiate for less than 10% of my salary. Maybe it was because I have a husband and they figured he obviously contributes to the family. Your case might be different, so the 10% is not the fixed rate. You might be able to pay less.

So that was my experience when I reported in to Insolvency. There was actually nothing to fear, apart from the many many forms to fill up! After that, I started my new job, paid my monthly dues and that's it. Throughout the four years, I contacted my officer in charge a few times, mostly through emails and phone calls, asking questions on overseas travel etc. They changed my Official Assignee (OA) 3 times during that time, but they were all very helpful and responded to all my questions patiently.

They even helped me by giving me the Proof of Debt (POD) vs. actual amount used on my credit cards (which was provided by the banks) that lets me reduce the outstanding amount. So basically, when I made my full settlement, I paid off all my actual debt and saved a lot on interest.

Sorry for the long post, but I want you to know that I understand your fear about going to Insolvency for the first time. I had the same feeling. But looking back, I was only afraid because I did not know what was going to happen (I have not found Lawyerment then). Now that I already went through the whole process, I am glad I finally surrendered. And I hope that you can find some comfort from my experience and can ease some of your worries.
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answered on May 9, 2016 at 21:18
by   fsy80
@Lindane,

Congrats on your discharge!

Please accept my friend request and please share your lawyer details if you don't mind!
Thanks
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answered on May 23, 2016 at 02:15
by   depression
edited May 24, 2016 at 03:38
 
@lindane

Need your advice regarding what you quoted:

Insolvency never forced me to come to them. In fact I managed to "hide" from them for about 6 years
 
How did you "managed to hide"? Is it just ignore the letter from Malaysia Department of Insolvency (MDI). Didn't those in MDI block your salary?
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answered on May 23, 2016 at 16:33
by   Sharifudin66
edited May 24, 2016 at 03:39
 
Can you give me the sample letter to ask for discounts from the Bank. Appreciate of you can forward it to me.
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answered on May 23, 2016 at 23:35
by   mike
edited May 24, 2016 at 03:42
 
@Sharifudin66,

I used the sample letter provided by Pening to ask for a discount from the banks.
Here, let me help you copy and paste from previous post by Pening..

answered on Jan 5, 2011 at 17:39
by Pening

Hi, 

This is the process in order for me to get discharged and you have to do yourself (Official Assignee (OA) will never help us) 

1) Call the bank and tell them your intention to get discharge. (Ask for final amount to settle). It is normal if they pass the line one to another department. (Don't give up until you get the correct person in-charged) 

2) They will provide you the letter of offer, which they stated the amount to settle.(you have to follow up with the closely if you want them to speed up the process. (Used very polite word) 

3) If you not satisfied with their offer, you can write letter to appeal to reduce the amount. (This is the letter that I'm send to them. (My lawyer draft this letter)(I get RM12K instead of RM15K) 

Your Ref:  

Your name & address 

Dated 

Bank Address 

Dear Sir/Madam, 

DALAM PERKARA KEBANKARAPAN WILAYAH PERSEKUTUAN NO: .................NO. K/P  : 

I refer to the above matters.  Thank you for your letter dated ----------, in which you agreed to the full settlement figure of RM15,000.00 to discharge the debt. 

Due to my current unfortunate circumstances and dire financial straits I am unable to make the proposed payment. The absolute limit of my capability of borrowings from my siblings and relatives is a sum of RM10,000.00. 

That is the only sum I can afford. It is my intention to discharge this debt at the earliest possible opportunity, and therefore, I assure you of my integrity and commitment to pay you the said sum of RM10,000.00 (Ringgit Malaysia : Ten Thousand Only) within seven (7) days of receipt of your approval. 

Your kind consideration and approval shall be much appreciated. 

Thank you. 

Yours faithfully, 

……………………………… 

4) After get the letter, go to Jabatan Insolvensi Malaysia (JIM) and pass the letter to OA and OA will give you the total amount to settle. (This is also you have to follow up with them)- The amount is inclusive JIM administration fee. 

5) Then make payment and bring the receipt and document related to your lawyer. 

Hope this can guide you
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answered on May 25, 2016 at 02:07
by   Lindane
edited Sep 15, 2017 at 10:08
 
Dear @depression ,

Sorry for the delay. 

To answer your question, I managed to "hide" from Insolvency for 6 years because somehow the bank account I get paid my salary in was never closed. I don't know why. So I ignored the letter to "surrender" and just went about my life as normal.

From what my Official Assignee told me, once you have been declared bankrupt, Insolvency will send a letter to ALL banks telling them to close any account under your name and to send them whatever money still inside. Another account of mine was closed a few months after I was declared a bankrupt. 

I was lucky I guess because my salary banker either didn't receive the letter, ignored the letter or forgot to take action. Insolvency does not contact your employer to stop your salary. 

I went in to Insolvency finally because I received a new job offer and I wanted to stop hiding by then.
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answered on May 25, 2016 at 02:15
by   Lindane
Dear Sharifudin66,

Mike is absolutely correct, thank you Mike.

That was the letter I used to ask my creditors for a discount. I only deleted the 1st paragraph when the creditor asked me to write in before they can make an offer. 

Pening's letter helped me save quite a bit of money!
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answered on May 25, 2016 at 02:24
by   Lindane
Just to update.

After receiving my Surat Perintah from High Court, I went to BNM to update my CCRIS. However, I was informed that the bankers will have to make the update from their end. And they will only do that when they have received their payment from Insolvency. So that will take some time. I haven't tried to update CTOS yet.

So don't bother to go to BNM once you get your discharge. BNM's advice to me was to chase Insolvency to make the payment then chase the bank to update CCRIS. And get a release letter from the bank for future reference.
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