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Discharge of Bankrupt Person under New Bankrupt Act Passed In Parliament 29 March'17

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asked on Apr 5, 2017 at 16:34
by   New Hope Bankrupt
New bankrupt act was passed in dewan rakyat parliament on 29 March'17

One of the interesting amendment was, the discharge of a bankrupt after 3 year.

Can anyone share your opinion or understanding in this clause here.

My question:

1. Does it mean that upon the full gazette of this new amendment act, all the existing current bankrupt who had been made a bankrupt for more than 3 year are "automatically" discharged?

2. Or its 3 year upon the gazette of this new act, that existing/old and new bankrupt will be discharge?

3. Can anyone define in more detail the procedure or process of the auto discharge after 3 year. The bankrupt who had served over 3 year have to write to Insolvency to apply for discharge?

4. Is there any hidden criteria to this auto discharge? Applicable for all bankrupt?

I aware that this new act still have to be table in Dewan Negara, then to DYMM Agong for final endorsement before it is gazette into practice. All in all, this new act should be in practice by end of year 2017.

This is a light at end of tunnel for all bankrupts and hope to hear interpretation, views and opinions for people who understand this new act.
Appreciate everyone's opinion sharing.

 
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4 Answers

answered on Apr 6, 2017 at 02:13
by   jeff005
edited Apr 16, 2017 at 10:28
 
Can you post in full what was proposed and where you read the article?

Even newspapers super writers can interpret it differently?

The first time it was suggested in Jabatan Insolvensi Malaysia (JIM) website, but I cant find it now. There are always pros and cons.

But again, there is no auto discharge indicated, as far as I interpret it. The initiate first proposal I remember is that a bankrupt have to have paid up 50 percent OF the total Proof of Debt (POD) filed in JIM. 

And the definition of social guarantors is ill defined and still have some gray areas.

Personal view is that it will only help a certain group of individuals.
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answered on Apr 6, 2017 at 03:31
by   New Hope Bankrupt
edited Apr 16, 2017 at 10:31
 
@jeff005

http://www.thestar.com.my/news/nation/2017/03/29/parliament-approves-amendments-to-bankruptcy-act/

Wednesday, 29 March 2017

Parliament approves amendments to Bankruptcy Act

KUALA LUMPUR: The Bankruptcy (Amendment) Bill 2016 was passed in the Dewan Rakyat on Wednesday.

The Bill, which was earlier tabled for its second reading by Minister in the Prime Minister's Department Datuk Seri Azalina Othman Said, was passed at the committee stage by a majority voice vote at 6.20pm.

Among the major changes to the Bankruptcy Act 1967 is substituting the term "bankruptcy" in all proceedings to "insolvency",  automatically releasing bankrupts after three years, and that social guarantors cannot be declared bankrupt.

Azalina said the changes to the bankruptcy policy was needed to address the unfair treatment of social guarantors, who previously ended up as bankrupts after principal borrowers failed to repay their loans.

Social guarantors are defined as those who do not profit and essentially provide a guarantee for an education loan, hire purchase transaction for personal or non-business use, or a housing loan for personal dwellings.

"There have been a lot of cases where social guarantors were made bankrupt. This is an improvement to the previous process and a system that is fairer to them," she said when wrapping up the debates on the Bill on Wednesday.

However, the Pengerang MP added that the amendments do not absolve social guarantors completely as they would still be subject to legal proceedings for debt recovery.

Azalina had earlier said when tabling the Bill that as of February this year, the Malaysian Insolvency Department was handling 293,086 active bankruptcy cases nationwide.

Selangor registered the highest number of bankrupt individuals, accounting for almost one-fifth of the nation's overall total.
Attached for your reading. It is on every news article. Automatic discharge after 3 year.

Jeff005, what you had quoted is from JIM guideline, which is still valid as at this moment but after this amendment to the act gazette, it will supersede the current JIM guideline an new lease of hope for bankrupts.
 
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answered on Apr 6, 2017 at 04:40
by   jeff005
edited Apr 16, 2017 at 10:36
 
Thank you very much.

But need to read exactly what is the exact wordings in the changes. Those are the critical contemptuous issues.

What is reported by the newspapers are possibly opinions written by non bankrupts who may not even what bankruptcy is all about.

I still maintain my stand that it is not Auto bankruptcy discharge. The mechanism is still not in place. Read what. Is bankruptcy discharge means from the perspective of the Aussie Bankruptcy discharge mechanism.

In Singapore, once bankrupted, one must report in within a time frame, or else, jail term. A bankrupt cannot drive even wife or children car, cannot take taxi even in heavy rain. Those are the mechanism in place.
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answered on Apr 6, 2017 at 05:00
by   jeff005
edited Apr 16, 2017 at 10:36
 
To understand what are the new changes, what it may help in your case, please state your issues. Nothing to be shy about. I do not know you, start with your case, then we can discuss. Are you a guarantor?
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