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Bankruptcy: True or false about EPF money in bank account being frozen

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asked on Dec 16, 2017 at 22:58
by   JT123
edited on Dec 19, 2017 at 23:58
 
I've googled and learn that some people have their EPF fund frozen once it was transferred into BSN.

My husband has withdrawn EPF for 50 year old via BSN 5 years back and had then quickly transferred out the money. Is was because he did not turn himself in to Jabatan Insolvensi Malaysia (JIM)? He thought JIM will eventually catch up but never did.

Now he wants to withdraw at 55. Is it still safe to withdraw? Now he only left CIMB bank.
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6 Answers

answered on Dec 16, 2017 at 23:09
by   kiki
Is he a bankrupt? What happen to the BSN account?
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answered on Dec 17, 2017 at 01:35
by   jeff005
edited Dec 20, 2017 at 00:01
 
Once adjudged a bankrupt, Bank Negara Malaysia (BNM) will send notices to all banks that the bankrupt has accounts to freeze all monies to be transferred to JIM into the bankrupt's estate. By right if he has been bankrupted before the EPF withdrawal, the money should have been returned into EPF joint account with the bankrupt.

He thought JIM will eventually catch up but never did.
Jabatan Insolvensi Malaysia (JIM) will not hunt the bankrupt down but will send notices to the last registered address.

If CIMB account has been opened before bankruptcy, it would be the same.
In any case EPF would by now have his bankruptcy status recorded.
When did he last utilized the CIMB account?
It would be still very very dangerous to make any withdrawal. If the balance is huge, utilize the @55 monthly withdrawal.

I've googled and learn that some people have their EPF fund frozen once it was transferred into BSN.
You read this in this Lawyerment Website? Can give me this link? I do not recall having read or notice it. Thanks.
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answered on Dec 21, 2017 at 17:10
by   JT123
edited Jan 5, 2018 at 07:16
 
@ kiki
Assume BSN is still there but dormant by now, as never received any letter saying it's been deactivated or freeze.
Once adjudged a bankrupt, Bank Negara Malaysia (BNM) will send notices to all banks.....

1. Problem is, not sure if he is technically considered bankrupt, or "still in the the process" because he has not gone thru the final process with JIM yet. What is your opinion?

2. Remember receiving only 1 letter from Maybank to freeze his account. BSN and CIMB are untouched. (We think it is because both bank accounts have been cleared out, leaving the min. requirement of RM10 or so....so to close for freeze needs admin fee? so who is going to pay ? JIM? BSN ? Bank to absorb ? I don't think so) Although NOT knowing the true reason, but that's how we see it anyway, as Maybank has a couple of hundred in it that time. Just sharing in case it's a little grey area or loop hole that may help others.

By right if he has been bankrupted before the EPF withdrawal, the money should have been returned into EPF joint account with the bankrupt.
When he got his @50 EPF, he was still in the process of attending court, so no restriction yet, at that time of status (I think!). Did it via BSN that time.
What do you mean EPF "joint account" with the bankrupt. Joint account of bankrupt and JIM? So what happens to the money?

Jabatan Insolvensi Malaysia (JIM) will not hunt the bankrupt down but will send notices to the last registered address.
Only got the initial letter to ask to report himself in. It has been years now and not another single letter. Should he report now? Any serious consequences to consider?
 
CIMB
This was not touched since day 1. He is using for many years until today. But always monitoring closely to withdraw all out once money come in.

In any case EPF would by now have his bankruptcy status recorded
Obviously not, because manage to get a small portion from his @55 EPF. Took a small amount to see if work and it did !! (again so is he technically considered bankrupt?seeing EPF have no records?)

Agree with you that it is still very very dangerous to withdraw. It worked this time but doesn't mean the next one will too. Am I right to say so? You suggested utilize the @55 monthly withdrawal, I translate what you meant by withdrawing in small portion? Is that what you trying to tell me?

I've googled and learn that some people have their EPF fund frozen once it was transferred into BSN.
May have read this on another forum. Sorry I can't remember which one, was reading from so many webpages.....

Please feel free to provide any other advice that I haven't touched on. These are Desperate Times. Thanks to all.
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answered on Dec 24, 2017 at 11:12
by   JT123
@jeff005
Was wondering about your reply and just realize I forgot to address my question to you . Sorry !
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answered on Dec 24, 2017 at 11:41
by   jeff005
edited Jan 5, 2018 at 07:20
 
@ JT123

It is difficult to figure out your situation.

You have posted:
Only got the initial letter to ask to report himself in. It has been years now and not another single letter. Should he report now? Any serious consequences to consider ? 
Technically have been adjudged a bankrupt

First you wrote
Now he wants to withdraw at 55. Is it still safe to withdraw?

Now you write
Obviously not, because manage to get a small portion from his @55 EPF. Took a small amount to see if works and it did !!

Which is which?

Check his overseas travel status and revert.
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answered on Dec 25, 2017 at 18:11
by   jeff005
@ JT123

The answers you seek may be found here (today's postings).

https://www.lawyerment.com/answers/questions/9887/bankruptcy-can-t-withdraw-epf-age-55?g=4#tab-top
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