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Settlement with Malaysia Department of Insolvency (MdI)

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asked on May 18, 2017 at 17:13
by   danny danny
edited on Jan 31, 2018 at 13:34
 
I've been declared bankruptcy since March 2016 (only knew it when my bank called me up to confiscate my saving), surrendered myself to Jabatan Insolvensi Malaysia (JIM) and have been consistent with my payment throughout.

It was a failed business whereby the main tenant sued me for rental of RM120k before interest, total final amount is RM140k after interest. With little knowledge on this matter, my appointed lawyer has been trying to get me out of it but ended up I paid X amount of lawyer fees to them and I'm still stuck with my bankruptcy status.

Now I'm interested with settlement with JIM to clear my bankruptcy as it is very stressing to run up and down to meet my lawyers and their legal fees. My proposed payment breakdown to JIM as below:

1) RM from my frozen bank account: RM17k (back in March 2016)
2) Monthly repayment to JIM: RM4.5k (to date)
3) Proposed settlement to JIM: RM50k (the max I could offer)

Total of RM71k (RM17k + RM4.5k + RM50K) to clear myself from bankruptcy from JIM. Do you think it is sufficient for JIM to accept my offer? I know I'm only declared bankrupt for 13 months but it is indeed affecting my daily activities.

Any kind suggestion will be deeply appreciated.

Thank you.
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answered on May 18, 2017 at 18:10
by   jeff005
edited Jan 31, 2018 at 13:37
 
my appointed lawyer have been trying to get me out of it but ended up I paid X amount of lawyer fees to them 
Another lawyer who can promise the Sky and the Moon.

Do you think it is sufficient for JIM to accept my offer?
Negotiate direct with the creditor only.
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answered on May 18, 2017 at 18:18
by   danny danny
edited Jan 31, 2018 at 15:17
 
Another lawyer who can promise The Sky and The Moon.
Exactly. Expensive lesson sigh

Negotiate direct with the creditor only.
The creditor is a big pain. To be honestly I don't see any them accepting anything below the sum they sued me for. Is there any possibility to negotiate with JIM instead & hope they will accept my offer?
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answered on May 18, 2017 at 18:23
by   jeff005
edited Jan 31, 2018 at 15:18
 
No way.

It is by Bankruptcy Law. But the payment must be made thru JIM. Have to pay early discharge fees to JIM too.

Exactly. Expensive lesson sigh 
How expensive? 6K?
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answered on May 18, 2017 at 18:25
by   vkpc
Is there any possibility to nego with JIM instead & hope they will accept my offer?
No.

In fact JIM will charge you extra about 12% to manage your insolvency.
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answered on May 18, 2017 at 18:36
by   danny danny
edited Jan 31, 2018 at 15:19
 
How expensive? 6K?
RM25k in total, Yes, I know I'm dumb, listen to advice from others.

Or is it better for me to stay as a bankrupt and continue paying my monthly repayment to Jabatan Insolvensi Malaysia (JIM) consistently for another 2 years to apply for discharge of bankruptcy? (total 3 years since March 2016)
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answered on May 18, 2017 at 21:16
by   jeff005
edited Jan 31, 2018 at 15:24
 
Or is it better for me to stay as a bankrupt and continue paying my monthly repayment to Jabatan Insolvensi Malaysia (JIM) consistently for another 2 years to apply for discharge of bankruptcy? (total 3 years since March 2016)
Sounds great idea to me personally. 
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answered on May 18, 2017 at 21:42
by   danny danny
edited Jan 31, 2018 at 15:37
 
Sounds great idea to me personally. 
Will there be any complication when I apply for automatic discharge of bankruptcy after 2 more years although I'm consistent with my monthly repayment? i.e creditor refuses to let me go, as mentioned the creditor is a pain, unethical businessman in other words.

Another question I have in mind, is the automatic discharge after three years only apply to new cases?

Thank you so much on your replies, its really helpful!
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answered on May 18, 2017 at 22:39
by   Jeff
edited Jan 31, 2018 at 15:38
 
There is NO AUTOMATIC DISCHARGE

Have to apply after the case management period. Subject to approval from creditors who filed Proofs of Debt.
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answered on May 19, 2017 at 00:02
by   danny danny
edited Jan 31, 2018 at 15:39
 
There is NO AUTOMATIC DISCHARGE

Have to apply after the case management period. Subject to approval from creditors who filed Proofs of Debt.


If after case management period, it is also subject approval from the creditor then it will be tough. What if the creditor doesn't want to accept my settlement forever?
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answered on May 19, 2017 at 01:40
by   kiki
edited Jan 31, 2018 at 15:39
 
What if the creditor doesn't want to accept my settlement forever?
After the case management period, discharging is entirely the prerogative of the Official Assignee (OA) even if the debt is not fully paid to the creditor. Normally with the creditors consent, their task will be made easier.
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