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Can I Be Bankrupted?

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asked on May 1, 2017 at 21:52
by   sallysm
Hi,
I have some issues I need help to clarify. Hope you guys can help shed some light.

This morning I received a call from "someone" saying that he is at my house to give me a "Notis Bankrup". I was not at home (Labour Day holiday).
I dont even know that this is possible until I google and read a few forums here.

My question is if they managed to "serve" me, should I attend court? I was away overseas last year (2015 - 2016) but I still pay my PL but maybe sometimes a bit late payment but I still pay. I received calls/ whatsapp from bank/debt collector while I was oversea, sometimes I replied, sometimes I ignored because they are simply rude. But I still pay my installments via online banking.
Since July 2016, my payments are late and I have 3 months in arrears. I am still paying the installments and I have another 3K only to make my account current with no outstanding. I plan to pay the default months by end of May. Then I will be on track again.
THEN, I got this call.
Should I ignore or should I let him "serve my notice"? I can afford to pay my installments because I have a good job offer now and I just came back to Malaysia last month to start working again.

Can someone help/advise me what should I do? Should I attend court and tell judge to dismiss my case and I continue to pay my installments as usual? Is it possible to dismiss case? or any other suggestions? I don't want to be bankrupt. 

PL : 132K  (without interest etc) total after interest etc 215K

What should I do next? Pls help. Thanks.
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answered on May 1, 2017 at 23:17
by   jeff005
edited May 1, 2017 at 23:24
by   jeff005
1. How old are you?
2. What is the balance of loan?
3. Have you been receiving your monthly statements of acs? .i.e. is your address updated with the bank?

In yr case, anything is possible as you were overseas for the whole year.
However, for yr case, the calls is likely from a Bill Collection Agency.

Read on the past few months and understand what is
4. Judgement Debtor
5. J.I.D. (Judgement in Default)
6. Bankruptcy Notice and how it is supposed to be served to the Judgement Debtor.

Should I attend court and tell judge to dismiss my case and I continue to pay my installments as usual.
Waaah.. u so big? U tell the judge or the judge order u pay full amount or else be bankrupted (if any) on that day?
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answered on May 1, 2017 at 23:28
by   kiki
My question is if they managed to "serve" me, should I attend court?
If they managed to serve you personally then you should attend court to contest it. You don't need to attend if you are not contesting it and are ready to be bankrupted.

If they don't managed to serve the Notis Kebankrapan personally to you then they will need the court permission to serve it to you via a substitute service ..ie by advertising in the newspaper. 

{Excerpts (copy n paste) below is the new amendment to the Bankrupcy Act. with regard to serving the Notis. Parliament has passed but the king is yet to sign it so that it will become effective.. don't know when..}

(3) Stricter Requirements for Service of Bankruptcy Papers
The bankruptcy notice must be personally served. Further, substituted service is possible but there are now stricter requirements. The creditor must prove to the satisfaction of the court that the debtor has:
The intention to defeat, delay or evade personal service; and
Leaves or stays away from Malaysia, or absents himself from his home or place of business.
Should I attend court and tell judge to dismiss my case and I continue to pay my installments as usual?
The pkp (judge) cannot dismiss the case or tell you to continue your installment but  will allow you sometimes (maybe 2~ 3 weeks) to negotiate with the bank. 
This is what he/she will tell you when you attend court for the 1st day of your case management.

Is it possible to dismiss case?
Only made possible if the creditor (bank) agrees. They are the one who drags you to court.

I don't want to be bankrupt.  
Many do..

Excerpts (copy n paste) below is the new amendment to the Bankrupcy Act.  The Parliament has passed it unanimously (2nd reading by the Dewan Negara a week ago)  but the king is yet to sign it so that it will become effective.. not sure when he will though..

(2) Introduction of the Rescue Mechanism: Voluntary Arrangement
There is a new pre-bankruptcy rescue mechanism called the voluntary arrangement. The salient elements are:
The individual, ie. the debtor, will appoint a nominee. The nominee is meant to act as independent professional to oversee and supervise the voluntary arrangement.

The nominee can be a chartered accountant, an advocate and solicitor, or such other person to be determined by the Minister.

The debtor then files a court application for an interim order for voluntary arrangement. The interim order will only last for 90 days and cannot be extended.

The interim order will grant protection: no bankruptcy petition and no legal proceedings against the debtor except with permission from the court.

Within the 90-day interim order period, the nominee will hold a meeting of the creditors to try to secure their approval for the voluntary arrangement. The voluntary arrangement is essentially where the creditors agree to compromise or discount the debts owing to them.
The nominee needs to secure more than 50% in number and at least 75% in value of the creditors’ agreement. However, the secured creditors’ rights cannot be affected without their consent. If the approval is obtained, it will then be binding on all the creditors.
Many have been said about the new 'borrower friendly' amendment but i notice most of it is still subject to the creditors consent.. 
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answered on May 2, 2017 at 06:05
by   bbuddy
it was not a bankruptcy proceeding.
just bill collector scaring you. 
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answered on May 2, 2017 at 07:31
by   sallysm
Hi @jeff005 @kiki @bbuddy
Thank you for your prompt response.

1. How old are you? 40 y.o
2. What is the balance of loan? About 213K as at Feb 2017
3. Have you been receiving your monthly statements of acs? .i.e. is your address updated with the bank? 
I received a 1 year statement for 2016. I used my hometown address which is still valid. I need to find the statement, I may have misplaced it.

Read on the past few months and understand what is 
4. Judgement Debtor 
5. J.I.D. (Judgement in Default) 
6. Bankruptcy Notice and how it is supposed to be served to the Judgement Debtor. 

Yes, I read some old posts here. The caller said it is BN and he needed to give it to me directly. I said I'm on holiday.

Waaah.. u so big? U tell the judge or the judge order u pay full amount or else be bankrupted (if any) on that day?
My mind went blank for a while this morning. Overwhelmed by too much info from Google search. 
What is your advise for me to stop this process?

If they managed to serve you personally then you should attend court to contest it. 
Is there a way to get the bank to cancel the BN? Based on your experience managing this forum, have you encountered any case where the bank cancel the BN after the debtor paid the outstanding? 
I received the automated text message on my phone "RM0.00 Sila jelaskan akaun PERIBADI-i anda yang tertunggak RM1593.05 dengan segera. Abaikan jika bayaran telah dibuat" This text is on 22 April. A bank officer also called me last week to inform me that I have the outstanding installment of 3K. She did not say anything about BN.
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answered on May 2, 2017 at 07:44
by   sallysm
Another question, 
The fact that the bank accepts my part payment of the arrears (via my online banking payment), does it mean that they accept and agreed to the payment plan proposed by me? and also they may not update their lawyer on the matter?
Can this be the basis of my argument to contest the BN?
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answered on May 2, 2017 at 17:08
by   notalawyer
The fact that the bank accepts my part payment of the arrears (via my online banking payment), does it mean that they accept and agreed to the payment plan proposed by me? and also they may not update their lawyer on the matter?  Can this be the basis of my argument to contest the BN?
Possible.

1. Which bank is trying to bankrupt you?

Make a payment of RM 500 or RM 1,000.
Then call up the person and set an appointment with him to take the Notice of Bankruptcy.
This strategy is so that the bank will not advertise the Notis Kebankrapan.

After you have been served with the Notis Kebankrapan, file an affidavit to say that the amount claimed is wrong because it did not take into account the your payment of RM 500.
This is the strategy to kill the Notis Kebankrapan and to buy time to pay the remaining outstanding.
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answered on May 2, 2017 at 17:36
by   sallysm
 Hi @notalawyer

It is Bank Rakyat.
I will follow your suggestions. Thanks. Will update again soon. 
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answered on May 2, 2017 at 17:49
by   Nora
The fact that the bank accepts my part payment of the arrears (via my online banking payment), does it mean that they accept and agreed to the payment plan proposed by me?
You force people to accept to your terms and conditions?

The call is from a debt collection agency
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answered on May 2, 2017 at 23:31
by   sallysm
Hi @Nora
Sorry, I don't understand your question. Do you mean bank force their terms? 

Latest update today:
I called bank officer to clarify, and yes they have issued out the BN and yet to be served to me.
I asked for a letter from bank to state that they will stop the legal process. 
Received the letter via email a few hours after that, which has my "ansuran tertunggak" value plus "bil guaman".
This is the main content of the letter---"Tindakan guaman hanya akan dihentikan setelah semua tunggakan diselesaikan sepenuhnya dengan kadar segera. Pengemaskinian maklumat pelanggan di dalam sistem CTOS/CCRIS hanya akan diuruskan setelah baki pembiayaan dijelaskan sepenuhnya"

I also went to Bank Negara, just to double confirm on my CCRIS report. The legal status column in the report is 'Bankruptcy" dated in January. I was still oversea at that time. 

Question:
Can the bank put the status in CCRIS report as bankruptcy although in my case is not bankrupt yet?
Based on their letter, Bank don't want to update CCRIS until full loan amount is paid ($200K) which is another 8 years tenure. If I read correctly, this is almost like bankrupt too? 
Is there any laws about creditors 'wrongful penalisations' to debtors or "wrongful accused before judgement" thing?
Can I fight this with some legal Acts if any?
Can I fight for them to update the CCRIS and put it together with the affidavit suggested by @notalawyer?

Anyone has a sample of affidavit? I will also browse old posts but if you guys have it already, I would appreciate very much if you share the sample copy with me.
Thank you.
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answered on May 3, 2017 at 00:57
by   kiki
Can the bank put the status in CCRIS report as bankruptcy although in my case is not bankrupt yet? 

Read FAQ on CCRIS by the BNM.. here

Can I fight for them to update the CCRIS and put it together with the affidavit suggested by @notalawyer? 

notalawyer suggested an affidavit to only set aside the BN if or when you have been served. 

Based on the letter by the bank they are willing to retract the BN if you pay the outstanding installments plus the lawyer's fees. Can you manage to take this option?

Fighting to get your record off the CCRIS is like fighting the whole financial system in the country and is best you do it in a seperate case.
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