Advertisement

Bankruptcy Act Changes

1463 Views  ⚫  Asked 10 Months Ago
asked on Mar 29, 2017 at 21:05
by   Enquirer2017
edited on Apr 16, 2017 at 03:28
 
Azalina: Bankruptcy action against Malaysians ‘last choice’ in proposed law changeBankruptcy Act Changes

Wednesday March 29, 2017

KUALA LUMPUR, March 29 — Bankruptcy proceedings against Malaysians will become a last resort move if Parliament approves proposed changes to the Bankruptcy Act 1967, minister Datuk Seri Azalina Othman Said said today.

Azalina said the Bankruptcy (Amendment) Bill 2016, which was tabled for second reading at the Dewan Rakyat today, is aimed at reducing the bankruptcy rates in the country.

The proposed amendments will make bankruptcy proceedings the “last choice” instead of the first choice in any enforcement of court decisions, she said.

It will also “create an alternative method to bankruptcy proceedings before an individual is made bankrupt.”

“A bankrupt individual who fulfills the criteria for release has the potential to be released faster to stimulate the country's economic growth and development and at the same time creditors would benefit when reasonable contributions are made by debtors,” the de facto law minister said.

The proposed law changes will also simplify bankruptcy proceedings and the process of administering bankruptcy cases, she said.

The amendments will create a society that is wise in managing their finances and more responsible in paying debts owed, as well as ensure creditors are more prudent in providing facilities for loan repayment, she said.

Azalina had said the Malaysia Department of Insolvency is as of this February administering 293,086 active bankruptcy cases nationwide, with Selangor currently accounting for almost one-fifth of the country's bankrupt individuals.

“Out of the total number of bankruptcy cases, Selangor recorded the highest number of bankruptcy cases in the country with 70,817 cases,” she said when tabling amendments to the Bankruptcy Act for second reading.

Noting that 58.57 per cent of bankruptcy cases in Malaysia involve those in the 25 to 44 age group, Azalina said these figures were worrying.

Source: http://www.themalaymailonline.com/malaysia/article/azalina-bankruptcy-action-against-malaysians-last-choice-in-proposed-law-ch
Anyone knows what are the proposed changes mentioned by Minister?
0 had this question
Me Too
0 favorites
Favorite
[ share ]
24 Answers
 1   2   3   Next »  Last »

answered on Mar 30, 2017 at 00:03
by   jeff005
edited Apr 11, 2017 at 08:13
 
Please read backwards. I have posted about the proposed changes.
1 found this helpful
Helpful

answered on Mar 30, 2017 at 00:32
by   Enquirer2017
Found it already. Thanks Jeff.
0 found this helpful
Helpful

answered on Mar 30, 2017 at 01:21
by   jeff005
edited Apr 11, 2017 at 08:13
 
@ Enquirer 2017

Basically the propose amendments will not help a certain group of people.
0 found this helpful
Helpful

answered on Mar 30, 2017 at 02:10
by   Hassan
edited Apr 11, 2017 at 08:14
 
Basically the propose amendments will not help a certain group of people.

Which group of people?
0 found this helpful
Helpful

answered on Mar 31, 2017 at 07:02
by   new hope bankrupt
edited Apr 11, 2017 at 08:14
 
@jeff005,

I cannot find your writings about this new proposed amendment to bankruptcy act which was passed in parliament on 29 March '17.

Sorry for being ignorant but I had tried and cannot find your explanation. Can anyone point it to me? Thank you.
0 found this helpful
Helpful

answered on Apr 6, 2017 at 21:47
by   Enquirer2017
Listen to this.

http://www.bfm.my/rns-trevor-jason-mark-padasian-skrine-being-benign-to-bankrupts.html
1 found this helpful
Helpful

answered on Apr 6, 2017 at 23:37
by   jeff005
edited Apr 11, 2017 at 08:16
 
It is great of you to study what is bankruptcy is all about even when you have not receive your first Writ of Summons.

Wish there are more people like you. Syabas..

1. Basically increase threshold amount to RM50,000.
2. Social Guarantors are still vague. All these years the mechanism is already there..
3. You still have go thru the mandatory 3 years case management and follow strictly.
4. You can make an application for discharge, yet the creditors can reject.

Nothing much new.
1 found this helpful
Helpful

answered on Apr 7, 2017 at 03:04
by   jeff005
edited Apr 11, 2017 at 08:17
 
Q 1. A and B are siblings. A own a small piece of land and a  5 ton commercial lorry fully paidup. B bought a property but unable to qualify for full loan. A became the guarantor, the parents and A lives in the house. Due to other debts B was bankrupted. Both are unable to service the housing loan. Bankruptcy Notice was served to A. 

Does A qualify as a social guarantor? What are the consequences to A? Can he claim social guarantor status and escape being bankrupted?

Note. In the guarantor section, the relationship declaration was "siblings".
1 found this helpful
Helpful

answered on Apr 7, 2017 at 03:26
by   jeff005
edited Apr 11, 2017 at 08:19
 
Q 2. X and Y are lovers. X is a new graduate while Y is an average wage earner. Y bought a new MPV. X became the guarantor of the hire purchase loan. The loan tenure is 9 years, full financing. In the guarantor section, it was declared as fiancee to each other. Fireworks started before the one year period. Y took off with the MPV and disappears. Later Y was declared a bankrupt in absentia. Next X was served with a Bankruptcy Notice, traceable as she is a teacher in government school.

Can X claim social guarantor status?

Note. Both cases are real cases sent to my mailbox.

Let's start a new discussion with relation to newly proposed amended bankruptcy laws.
0 found this helpful
Helpful

answered on Apr 7, 2017 at 13:47
by   Enquirer2017
More on new bankruptcy bill, below link;

https://themalaysianlawyer.com/2016/11/22/the-new-bankruptcy-bill-malaysia/
0 found this helpful
Helpful


 1   2   3   Next »  Last »

Your Answer





By posting your answer, you agree to the privacy policy and terms of service.