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Heading towards bankruptcy and house ownership transfer

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asked on Jul 28, 2017 at 14:51
by   mizs74
edited on Aug 18, 2017 at 04:04
 
I am heading towards bankruptcy and no way of avoiding it. I owe multiple banks via credit cards and have struggled to cope with payments. I have decided to throw in the towel and face bankruptcy.  I stopped paying my credit cards back in June 2002. So far only 2 banks have begun legal proceedings in which both I did not attend.

I do have a questions that has been bugging me.

I just received a "Notis Kebankrapan" today.  I purchased a house back in 2002 under a joint ownership with my wife. I sold my share of the house to my wife in July 2016 via sub sale. The property has been assigned from the Developer to my wife’s name. My name was only on the Sales and Purchase and housing loan. The property was never transferred from the Developer till the sale of my portion. Geran Tanah is now under my wife’s name. My wife has refinanced the house recently in January 2017 with a new bank under as a sole ownership.

Questions:

1. Will the house be effected with my bankruptcy?

2. Is Jabatan Insolvensi Malaysia (JIM) able to revert the sale and auction off the house which was initially dual ownership?

3. I do not have other assets to my name, will my personal belongings be confiscated? Nothing much of value and certainly nothing above RM 5,000 individually.  

I do hope some of you are able to shed some light on the matter.
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7 Answers

answered on Jul 28, 2017 at 15:09
by   vkpc
edited Aug 18, 2017 at 04:07
 
I just received a "Notis Kebankrapan" today.
Did you sign receipt of it?

1. Will the house be effected with my bankruptcy?
2. Is Jabatan Insolvensi Malaysia (JIM) able to revert the sale and auction off the house which was initially dual ownership?

By law, yes.

According to Bankruptcy Law,
If ownership changes hands within 2 years of bankruptcy, Jabatan Insolvensi Malaysia (JIM) can take half the house and nobody can oppose it.
If ownership changes hands within 5 years of bankruptcy, Jabatan Insolvensi Malaysia (JIM) can take half the house but your wife can try oppose it in Court.

In reality, if none of the Creditors tip off Jabatan Insolvensi Malaysia (JIM) that there was half a house transferred, your wife might get away with it.

So the best thing to do now is to attend Court, oppose to delay the bankruptcy for as long as possible.
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answered on Jul 28, 2017 at 15:17
by   mizs74
edited Aug 18, 2017 at 04:08
 
Thanks vkpc,

I did not sign for anything but they did mention in the letter for scheduled date to delivery the letter. 

How will half of the house be dealt with? Can they sell off half a house? The house was sold to my wife and was not as a "gift" had lawyer do up the sale of the house. 

What rights has my wife to the house in this predicament? She has refinanced the house with another bank. 
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answered on Jul 28, 2017 at 16:27
by   jeff005
edited Aug 18, 2017 at 04:11
 
If there is a shortfall on the disposal of the property (your half share), Jabatan Insolvensi Malaysia (JIM) will not take the trouble to initiate any action.

If Jabatan Insolvensi Malaysia (JIM) takes your belongings to 'lelong', who wants it? Taboo... where to store all bankrupts belongings? Putrajaya HQ? In reality they do not bother about it. Except for items with registration numbers like your hifi home theatre set.
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answered on Jul 28, 2017 at 20:25
by   kunta_kinti
edited Aug 18, 2017 at 04:20
 
@mizs74,

Best way to delay bankruptcy is to fight properly. Do it today before it is too late.

To share my experience, the bank take legal action on me on 2010. I fought back. It is 2017 now and I still have significant chance to avoid bankruptcy. I am fighting up to appeal court today.

If you fight and delay like my case, you do not need to worry about your house (more than 5 years)
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answered on Jul 28, 2017 at 21:34
by   mizs74
@kunta_kinti,

No point fighting or delaying cause my debt is way off the scale. Even not doing anything it's been 5 years since they decide to take legal action. Anyway I am glad to put it all behind, if they decide to take my house maybe I will lose half of it but again my wife owns the house now and it's been refinanced. Basically secured the cash and will see what's in stored. 
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answered on Jul 29, 2017 at 01:25
by   kiki
edited Aug 18, 2017 at 04:23
 
..my wife owns the house now and it's been refinanced. Basically secured the cash..

If Jabatan Insolvensi Malaysia (JIM) confiscate the house, then the bank to whom your wife has refinanced it will most likely file a claim in court for full payment against your wife.

Assuming it is more than RM50,000 then the scenario will then be, either your wife face bankruptcy or surrender back the secured cash to pay the bank.
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answered on Jul 29, 2017 at 03:34
by   jeff005
edited Aug 18, 2017 at 04:24
 
@ kiki

He has hidden the cash that's why secured. He is a rich bankrupt (if bankrupted).

My personal view is that Jabatan Insolvensi Malaysia (JIM) will not confiscate this property if his name was never in the Property Grant before. He is merely a co-borrower of the housing loan.
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