Finally discharged from bankruptcy! Thank you everybody for advice

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asked on May 1, 2016 at 06:07
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 24, 2017 at 15:05
Only a life lived for others is worth living.
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answered on Aug 28, 2017 at 23:11
Hi Lindane.  First and foremost, congratulations on your clean slate!  How does it feel, to be a 'free' woman?  

When I read your story, it felt like I was reading my own story as is very similar to yours. I've been a bankrupt for more than 10 years and like you, I avoided going to Insolvency (MDI) so that I don't have to face the music.  My bank accounts too, were miraculously not frozen all this while so I could still earn a good living.  I still owned a car as the HP loan was not under my name and I took vacations locally.

I finally had to make an appointment to see my OA in MDI this year to declare my Statement of Affairs because I inherited some properties and they could not be transferred to my name as I'm a bankrupt.  After spending more than 2 months negotiating for a full settlement amount with several banks, I have just managed to make full payment to MDI.  Btw, my percentage of Insolvency fees was about 20% of my total debt.  You were lucky yours was only 10%.  I still don't understand how the calculation works, though.

I am in the midst of getting a lawyer to file for an annulment from bankruptcy on my behalf.  I was told that it could take anytime between 2 weeks to 3 months.  What I'd like to find out from you is - how long did it take for you to be annulled, and how was the process like?  
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answered on Oct 3, 2017 at 15:34
Hi, Lindane

Can u please share the contact of the lawyer which help you settle the case? 
Where is the state for the lawyer?

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answered on Oct 8, 2017 at 13:34
Dear Anonymous on Aug 28,

Firstly, so sorry for the very late reply. Been swamped at work, not much time to check out this forum.

To answer your question, as I recalled, after engaging a law firm to file on my behalf, they took about a week to prepare the necessary documents and about a couple more weeks to get the hearing date. The longest wait would be for the court date.

During the hearing, the lawyer from Insolvency did most of the talking, my lawyer passed a bunch of documents to the court officer who looked through everything barely asking questions. Then the court officer declared my annulment. I didn't have to say a word. With that, technically I am no longer a bankrupt!

The official court letters came later, get the clearance letter from Insolvency and that is it!

I am sure you would have settled your case by now so congratulations. Onwards to the next life challenge!
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answered on Oct 8, 2017 at 13:42
Dear JCxx,

My case is managed in WP KL. The law firm I used is the one of a few that I called and I was comfortable with. Just called a few firms and asked if they can help me with my bankruptcy case. Mine was an easy case because I made full settlement. I just didn't have the confidence to do the paperwork myself. 

However, if you are planning to go to court for other aspects of bankruptcy, you may want to be a bit more selective in choosing your lawyer. Sorry I can't be of more help.
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answered on Oct 8, 2017 at 14:05
edited Nov 17, 2017 at 07:43
Post-Discharge Update - 1.5 years later

Passport - applied this year, no problem whatsoever. Just make sure you still have your old passport with you.

Overseas trip - no problem. No need to show letter or anything. (I was so relieved when the biometric scanner gate opened!)

CCRIS - got in touch with them, submit letter of annulment, so now the report says Annulment on *date*. But the report still has the word bankruptcy in it. Don't know if it will be there forever. Some say CCRIS is obligated to remove the information after 2 years. 

CTOS - no chance to get report yet.

New loan application - Have not tried. Maybe will try to submit a hire-purchase loan application just to see if it can go through.

Credit card - received CC offer over the phone. Agreed just to see if it will go through. Rejected!! But that was last year, very soon after discharge. If I get another offer, I will try again.

Have a nice day folks!
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answered on Oct 8, 2017 at 15:02
edited Nov 17, 2017 at 07:45
Nice to hear from you. Dear, I thought you are male..!!
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answered on Oct 9, 2017 at 11:07
edited Nov 17, 2017 at 07:42
Hi @jeff005,

Good to hear from you too. Hope you are well. Yeah the name can be a bit misleading.

I wish I have more time to spend in the forum and be of some help. I will try to give back what I have gained here. You guys saved my sanity during those long bankruptcy years!
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answered on Oct 31, 2017 at 04:32
edited Nov 17, 2017 at 07:47
Hi Lindane,

Congratulations on your discharged!

This is really something nice to hear. Wishing you good things ahead.
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answered on Dec 16, 2017 at 12:21
Dear All,

Just to update on my situation post-bankruptcy.

I applied for a car loan recently with my salary bank and was approved! So not even 2 years post-bankruptcy yet but it seems my credit situation is healthy enough that the bank is willing to extend a loan for me to buy a car.

No credit card yet, still trauma from last time 😀.

So to all of you still worrying, just hang in there, pay JIM regularly and keep the faith. There is light at the end of the tunnel!

Have a good day folks!
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