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What happen to money in bank after being declared bankrupt?

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asked on Dec 13, 2016 at 04:41
by   Matthew
edited on Dec 24, 2016 at 05:47
 
If I am declared a bankrupt, what would happen to my money in bank accounts? If no bank account, I can't withdraw my salary.
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4 Answers

answered on Dec 13, 2016 at 05:34
by   Bankrupt2b
edited Dec 24, 2016 at 05:52
 
If I am declared a bankrupt, what would happen to my money in bank accounts?
Belongs to Jabatan Insolvensi Malaysia (JIM) to pay your creditors.

If no bank account, I can't withdraw my salary.
1. Talk to your boss to pay cash
2. If no, change job
3. Report in to Jabatan Insolvensi Malaysia (JIM) and get permission to open bank salary account.

Read thru the past one year of postings in this forum to understand bankruptcy better.
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answered on Jan 14, 2017 at 06:29
by   Employer
Under the Employment Law of Malaysia, salary must be paid through bank (Section 25 of Employment Act 1955) with a provision of allowing employee to submit a written request to employer to pay by cash or cheque.

Payment through bank provides more transparency in the system for both employee and employer. No more manually maintaining a register. Employee will not be exploited by employer. Employer will not have to worry about dispute of non-payment of salary by employee since there are genuine payment records.

You are recommended to obtain permission from JIM to open a bank account.
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answered on Jan 14, 2017 at 06:41
by   aida
No more manually maintaining a register

A REGISTER OF EMPLOYEES is still required by Labour Laws

Labour Laws requires employers to pay by Cash.
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answered on Jan 16, 2017 at 21:05
by   Employer
It's salary payment by cash thus I am referring to the register where employees are required to sign to confirm the amount of cash paid every month. Of course, the human resources department can't even function properly without a register of employees.

Are you referring to the Sabah and Sarawak Labour Ordinances? Section 25 of the Employment Act 265  which is applicable to West Malaysia was amended in 2012 where "Wages to be paid in legal tender" was replaced with "Wages to be paid through bank".
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