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Using third party bank account to receive money due to a bankrupt?

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asked on Dec 7, 2017 at 13:43
by   kennylee299
edited on Dec 11, 2017 at 10:02
 
It's been a while since my last question (https://www.lawyerment.com/answers/questions/12140/misinformed-about-date-for-creditor-s-petition-hearing).

I have been adjudicated a bankrupt since then. And am feeling really tired. But I'm committed to working it out the best I can, even though I'm already in my 50s. In meantime, if I may, a question, or two, please.

Prior to my bankruptcy, I had some small amount of monies owed to me. Hypothetically, would it be an offence (on my part and also on the part of the "helper") to use someone else's bank account to receive those monies (by cheque or transfer)?

Would the helper be subject to legal action? What kind of action would that be? Freezing of bank account? Fine? Jail? Please, I'm not planning to do anything illegal. Just trying to clarify a point.

My second question is also hypothetical: what if a bankrupt is the beneficiary of insurance proceeds from death of a loved one, disablement or policy maturity?

Thank you, all of you, for being here. Even though faceless, it's a comfort to have you all as a community of help and support.
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7 Answers

answered on Dec 7, 2017 at 13:52
by   vkpc
would it be an offence (on my part and also on the part of the "helper") to use someone else's bank account to receive those monies (by cheque or transfer)?
No offence.

Would the helper be subject to legal action?
No.

what if a bankrupt is the beneficiary of insurance proceeds from death of a loved one, disablement or policy maturity?
No problems.
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answered on Dec 7, 2017 at 14:56
by   AskNonLegalDotCom
 some small amount of monies 
 (on my part and also on the part of the "helper")
How would others know? You two only.

Would the helper be subject to legal action? 
Unless that helper is caught in Anti Money Laundering issues.

what if a bankrupt is the beneficiary of insurance proceeds from death of a loved one, disablement or policy maturity? 
There are 2 definations
Beneficiary
Nominee
Very old policies  is Beneficiary
New policies is nominee
Both have different legal aspects. Nominations can change names, beneficiary - cannot.
If there is a proceed from one (for death), the cheque is written to the bankrupt's name (so, better have a banking account. In order to have a banking account, report in to JIM)
This proceeds have to be declared in the half yearly I&E to JIM. JIM may take around 30% to pay to POD Creditors, i.e. into your estet.

For sizeable amounts, the Insurance Companies (by Insurance Laws) have to check with JIM to see if the beneficiary is a current bankrupt or not. If he/she is, the Insurance Company will send the cheque under the bankrupt's name direct to JIM. Case closed.

"disablement" - Cheque to the insured
"maturity" - ditto
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answered on Dec 7, 2017 at 17:58
by   vkpc
Actually there can be 4 types of beneficiaries in an insurance policy.

1.  Nominee
2.  Trust Nominee
3.  Conditional Assignee
4.  Absolute Assignee
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answered on Dec 7, 2017 at 20:15
by   kennylee299
Thank you, all, for your helpful answers.

*How would others know? You two only*

What if the "payer" required me to give them a written letter to authorise payment to the third party's name? There would be a written record, would there not? Could this be used as "evidence" of my trying to circumvent the JIM?

Thank you, once again. 
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answered on Dec 7, 2017 at 22:16
by   mike
What if the "payer" required me to give them a written letter to authorise payment to the third party's name?

Only individual 'payer' would ask for this authorise letter for safekeeping worrying you may say the opposite in the future. So, its quite safe actually.

Registered institution or organization may not even consider the idea.
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answered on Dec 7, 2017 at 23:12
by   jeff005
edited Dec 11, 2017 at 10:09
 
Why complicate a simple issue?
If your debtors know you are a bankrupt, they would not pay you unless you use debts collectors. Even then they would issue cheques under your name.

If you are a young man, just report in to Jabatan Insolvensi Malaysia (JIM) and open a savings account.

Just inform those debtors that if they do not want to pay, you will get permission from Director General of Insolvency (DGI) and sue them. The proceeds goes your your bankrupt estate in JIM to pay your Proof of Debt creditors.

Take note that those debts especially business ones are your "tangible assets". JIM can act "free of charge" to sue on behalf of your estate..!!

Just offer a discount to get back some cash moneys...
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answered on Dec 8, 2017 at 12:16
by   kennylee299
Thank you, all, for your help. Am much obliged.
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