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Full and final settlement of bankruptcy debts made. How long does the Insolvency Department take to pay the bank?

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asked on May 6, 2016 at 18:42
by   swooi
edited on May 23, 2016 at 07:52
 
How long does the Department of Insolvency (Jabatan Insolvensi Malaysia) take to pay the bank if I have done all my part?
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answered on May 7, 2016 at 05:06
by   Lindane
Hi @swooi, 

Once you have made full payment to Insolvency, you may proceed to file for discharge immediately. The bank(s) will receive the notice to attend the hearing and they know then that you have paid. The time when Insolvency actually sends the funds to the bank is not our concern anymore. That is a matter between the bank and Insolvency.
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answered on May 7, 2016 at 11:59
by   swooi
How do I get back the remaining sum from the Insolvency that they took (freeze and transfer to Insolvency Department ) from my bank account?
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answered on May 7, 2016 at 13:03
by   Lindane
If you have any balance after making the full settlement determined by Insolvency, you have to bring the surat perintah from the high court which says you are successful in your discharge, back to Insolvency and claim the extra portion. I do not know how long Insolvency takes to return the money though, because I have not done this part yet, so I do not have the answer. I will update here once I go back to Insolvency to claim my extra funds.
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answered on May 7, 2016 at 20:35
by   swooi
edited May 23, 2016 at 07:56
 
After my negotiation with the bank (my debtor), they agreed with a sum, which is 1/4 of the sum held by the Insolvency Department, for the full settlement, and the written letter has been given to the Insolvency Department by me personally five month ago. And I found out that the bank have not received the full settlement yet!

And I have written a letter to the Insolvency Department to claim the remaining sum held by them, and was rejected! What should I do next to get my money back as soon as possible? Do they still have the right to hold my money?

How much does the Insolvency Department charge me for that?
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answered on May 7, 2016 at 22:19
by   Lindane
edited May 23, 2016 at 08:03
 
Dear Swooi,

I am not sure what actions you have been advised to take, but here are mine:
1. obtain full settlement offer letter(s) from bank(s) who had submitted Proof of Debt (POD).
2. submit letter(s) to Insolvency Department.
3. Insolvency Department will produce a letter for full settlement which consists of bank(s) amount + Insolvency fees (I think it was about 12% of bank(s) settlement amount)
4. pay the amount to Insolvency Department, get receipt.
5. with all letters + receipt, file case in high court for discharge.
6. get "Surat Perintah" from court when successfully discharged.

As at this time, I have completed all the steps above. I still need to do a few more, which is listed below.
7. use "Surat Perintah" + other necessary documents back to Insolvency Department to claim balance of funds (if any).
8. get release letter from Insolvency Department to change status in CCRIS and CTOS.

If you have done all of the above, you should get the rest of your money by now. 

- Maybe you have missed a step? 
- Have you asked your officer at Insolvency about it?
- Are there other banks who have submitted their pod? You have to settle all, not only the bankrupting bank.
- Did you complete all the paperwork with Insolvency?
- Have you obtained an official discharge judgement from high court?

It is very odd that it takes that long for you. I don't think it is important when the bank gets their money. The banks I was dealing with told me that once I made full settlement with Insolvency and showed them the receipt, their claim on me is over and they produced letters of No Contest for my discharge hearing. It is equivalent to them being paid already though I think Insolvency have not sent the money yet then.
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answered on May 7, 2016 at 23:42
by   swooi
edited May 23, 2016 at 07:58
 
I have check that no other Proof of Debt (POD), and I have submit my full settlement offer letter from bank to Insolvency Department five or six month ago...

This is obviously the officer incharge of my case did not do the job!
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answered on May 8, 2016 at 01:18
by   Lindane
You keep saying you submitted the letter to Insolvency but did not mention anything about going to the court for a discharge. Have you received your discharge judgement from the high court?
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answered on May 8, 2016 at 13:42
by   swooi
edited May 23, 2016 at 08:05
 
No, my lawyer did not do this, he just only go found out that I'm only have one debtor (Proof of Debt POD), may be the lawyer don't even know how to handle Bankruptcy case. I'm going to see my lawyer by Monday to discuss about file for discharge immediately.

How much the lawyer will charge me for discharge of bankruptcy?
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answered on May 9, 2016 at 11:06
by   Lindane
You will have to ask your lawyer that when you see him/her on Monday. Fees vary from lawyer to lawyer. I don't think the charges are fixed.
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answered on May 9, 2016 at 16:18
by   swooi
edited May 23, 2016 at 08:08
 
Thank you very much for all your help. Very much appreciated!
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