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What are the possibilities and procedures for my bankruptcy discharge?

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asked on Sep 11, 2017 at 05:20
by   kenji66
edited on Oct 10, 2017 at 10:59
 
I have been sued bankrupt by a bank in 2008 due to being a guarantor for a loan which I signed as the director for a Sdn Bhd. I am so lucky to be a silent reader in this forum since 2009 gaining knowledge along the way and understanding that it was not the end of the world. Thus, I made myself reported to Jabatan Insolvensi Malaysia (JIM) in 2009 after reading a lot of Q&A in this forum. Thanks for that. 

From 2009 until now I have been making prompt monthly payment to JIM but have not submit any 6 months of financial status to them. I am hoping so much to ask for discharge. 

I have contacted JIM Official Assignee last week and made an appointment with them to discuss the procedure and any possibility that I be discharged with the permission of the Director General of Insolvency (DGI). With that total amount of debts, I think I can't settle in full with the bank and even asked for discount. 

Would like to ask what should I do if the DGI rejects my application? Actually I am so depressed that I have bleak future due to my current bankrupt status. I have lost lots of opportunities when I was between 31 and 38 years old. I start to feel like a failure without success again. It ruins my life. I know auto discharge is not going to happen for my case. 

Any advise from all 'sifus' here or steps I should prepare are really very, very much appreciated. 
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answered on Sep 20, 2017 at 19:27
by   jeff005
How did your meeting with JIM goes?
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answered on Sep 21, 2017 at 00:15
by   kiki
How can a bankrupt be released from his bankruptcy status?
There are three main ways as to how a bankrupt can have his bankruptcy terminated:

(a) Making an application in court at any time for the bankruptcy order to be annulled on grounds
ie debt has been paid in full or that he ought not to be made a bankrupt on some technical
grounds;

(b) Making an application in court at any time for a court discharge. This is subject to a stringent
requirement and the Insolvency Department has to put a report emphasizing among others the
conduct and cooperation of the bankrupt with the department.

(c) Making an application to the DGI for a discharge under section 33A of Bankruptcy Act 1967. 

Such application can only be made only if 5 years has lapsed from the date order was made upon
satisfying some criteria imposed by the DGI for the exercise of his discretion. 

Among the factors that the DGI will take into consideration are the conduct of the bankrupt, the extent of his
cooperation with us, the cause for bankruptcy, old age and infirmities etc.

Another reference from Lindane Case
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answered on Sep 21, 2017 at 02:41
by   kiki
1. '' With that amount of debts, I think I can't settle full with the bank currently even ask for discount. '' 

How many percent of the total debt, do you think you have paid for the almost 7 years (since 2009)?

2. '' I have contacting JIM OA last week and hope to appointment with them to discuss any possibility that I ask for DGI permission to discharge me and procedure. ''

For the factor of item 1.,  you are approaching DGI on the basis that :


DGI has discretion to discharge a bankrupt based on certain specific factors but must also be accompanied with factor of good conduct. The factors are:
· health problem/prolong illness (supported by medical report);

· too old (70 years old and above); and

· case administration exceed 5 years.
and you will solely rely very much on the fact that the case administration has exceeded 5 years and good conduct.

3. pay promptly for my monthly payment to JIM but have not submit any 6 months of financial status to them.

Pay promptly is good conduct but not Submitting every 6 months  financial status to DGI is not a good conduct.

Good conduct to DGI means the following :
(a) Good co-operation as and when required by any officer of MdI;

(b) Upon being adjudged a bankrupt, he will attend to the MdI's office immediately when required to do so;

(c) Have submitted a complete Statement of Affairs within a stipulated time given by MdI;

(d) Regularity in making payments or monthly contribution;

(e) Compliance with the DGI's and Court order;

(f) Compliance with all the restrictions under section 38 of Bankruptcy Act 1967;

(g) Submitting an Income and Expenditure Statements every six months;

(h) Informing the Department of any changes of address and income;

(i) Did not make any direct payment to the creditors; and

(j) Declaration of dividend
4. Would like to ask what should I do if the DGI reject my applications?
Before you approach the DGI try to ponder or prepare some lawful excuses over the item that you may not have done a good conduct. 

If your point of good conduct is about 8/10, then the 2/10, insist or beg the DGI to apply his prerogative.

Good luck on your meeting with DGI.
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answered on Sep 21, 2017 at 03:42
by   kenji66
edited Sep 21, 2017 at 03:46
by   kenji66
Thank you very much for all the reply.

Just back from JIM from my hometown. Firstly the OA is very helpful. She have gave me several suggestion. 

1. She was asking me to appeal to have half of my debts to settle with the bank. But like I said, due to the amount of the debts even half discount I also can't afford to pay haha. The debts is about 2million. 

2. She said will try to propose my case to DGI in view of im havING a good conduct with the prompt payment and not breach any of the insolvency law. I did honestly tell her that, I'm not aware about the 6 months of financial status has to be declare. But she said is not so important. Then she was asking me to write in a letter to JIM seek for their assistant to help melangsaikan the debts. And suggested to write due to my case has been filing 8 years with good repayment, the time be a guarantor when I'm young to just help my family business, then in my current income really no chance to settle it all. My career can't go further because of this status. So would like to seek for the unit budi bicara help me to find the way of discharge. And need to submit my previous company Ssm search to prove the company has been close down with no profit. The debts actually is for machinery and was burn out when my factory Cought in fire. Then submit the prove of insurance payment has been pull to pay to the bank. She said will try to help me but afraid the bank will be object. 

For this, anyone good enough to have something like this kind of sample letter which I can refer to? Really appreciate for those willing to help. 

3. If DGI application objected by the bank, she suggest look for 1 lawyer to represent in the court to explain and tell the he judge that give me another chance in view of my case was in my young age guarantor for family business with not matured enough. And the status do will distract my future career and my life. But I tell her I can't afford to have a lawyer to represent me. Any how also need to wait for her help on 2ND option. 

Again is very appreciate if someone have the said similar letter for me to refer and any advice of all the sifu here what is my next step?

Thank you very much for helping me and given me all the information. 
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answered on Sep 21, 2017 at 12:14
by   notalawyer
Are you staying in Kedah?
................................
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answered on Sep 21, 2017 at 12:34
by   kenji66
I'm working in KL. JIM and hometown at Ipoh. 
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answered on Sep 21, 2017 at 18:31
by   kiki
I have contacting JIM OA last week and hope to appointment with them to discuss any possibility that I ask for DGI permission to discharge me and procedure. 

When you make the appointment with JIM, did you write letter to them or just by phone call? 
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answered on Sep 21, 2017 at 19:09
by   kenji66
When you make the appointment with JIM, did you write letter to them or just by phone call? 

Just appointment and meeting them yesterday. Is walk in. No letter writing yet. They ask me to submit in the letter of
2. She said will try to propose my case to DGI in view of im havING a good conduct with the prompt payment and not breach any of the insolvency law. I did honestly tell her that, I'm not aware about the 6 months of financial status has to be declare. But she said is not so important. Then she was asking me to write in a letter to JIM seek for their assistant to help melangsaikan the debts. And suggested to write due to my case has been filing 8 years with good repayment, the time be a guarantor when I'm young to just help my family business, then in my current income really no chance to settle it all. My career can't go further because of this status. So would like to seek for the unit budi bicara help me to find the way of discharge. And need to submit my previous company Ssm search to prove the company has been close down with no profit. The debts actually is for machinery and was burn out when my factory Cought in fire. Then submit the prove of insurance payment has been pull to pay to the bank. She said will try to help me but afraid the bank will be object.  

For this, anyone good enough to have something like this kind of sample letter which I can refer to? Really appreciate for those willing to help
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answered on Sep 21, 2017 at 20:27
by   kiki
Then she was asking me to write in a letter to JIM seek for their assistant to help melangsaikan the debts.

See if you can use this draft..

Kepada:
Ketua Pengarah,
Jabatan insolvensi Cawangan Ipoh.
Aras 2, Bangunan KWSP
Jalan Greentown
30450 Ipoh
Perak Darul Ridzuan

Per: RAYUAN DILEPASKAN DARI STATUS KEBANKRAPAN.

1 Bahawa saya yang bernama Kenji 66 (No.K/P: xxxxxxxxxxxx) adalah  seorang bankrap yang telah melapor diri kepada Jabatan ini sejak tahun 2009.

2. Saya menulis rayuan ini atas tujuan dilepaskan dari status kebankrapan atas budibicara Ketua Pengarah Insolvensi mengikut  Seksyen 33A Akta Kebankrapan 1967.

3. Adalah dalam pengetahuan saya  bahawa hutang kepada kreditor masih belum dilangsaikan sepenuhnya namun status kebankrapan ini  telah benar benar menghukum saya sepenuhnya. Saya tidak mungkin dapat memulihkan penghidupan saya seumur hidup jika status kebankrapan ini tidak dilepaskan.

4. Perlu di sampaikan kepada pengetahuan Tuan bahawa  saya menjadi  bankrap kerana menjadi seorang penjamin kepada perniagaan keluarga. Ketika itu saya masih tidak matang dan berpengetahuan dan terpaksa atas obligasi sebagai ahli keluarga.

5. Perniagaan keluarga itu juga telah lama di tutup. Hutang hutang itu adalah kerana pembelian mesin dan mesin mesin itu juga telah musnah dalam satu kebakaran kilang. Pampasan dari pihak insuran juga telah di tarik oleh pihak bank.    

6. Saya telah melalui Pentadbiran Kes dengan Jabatan Insolvensi ini selama 8 tahun dengan rekod pembayaran semula yang menepati masa serta berkelakuan baik.

7. Dengan ini saya dengan rasa rendah diri merayu kepada pihak pihak Tuan untuk melepaskan saya dari status kebankrapan ini.  

Yang Benar

…………………
Nama dan alamat
No. Tel:.......
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answered on Sep 21, 2017 at 21:12
by   kenji66
Dear Kiki,

I don't know how much I can say my thanks to you. Other then that it already fully drafted what I need. I'm here to thanks again for your help. And I will update here if any status coming out. May all the good luck and health for you all. 
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