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Anyone got discharged from bankruptcy without making settlement to bank?

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asked on May 10, 2019 at 15:17
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edited on May 24, 2019 at 14:59
 
Has anyone ever successfully applied for bankruptcy discharge even without making full settlement to the banks? Possible to get application approved?
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answered on May 10, 2019 at 18:02
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edited May 24, 2019 at 19:04
 
Has anyone ever successfully applied for bankruptcy discharge even without making full settlement to the banks?

Yes...
1. Discharged on medical grounds and old age
2. Presentation of death certificate
3. By going thru the Case Management period (restriction applies).
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answered on May 10, 2019 at 19:51
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edited May 24, 2019 at 22:20
 
@jeff005, I'm still young and healthy so I guess the first two options are not possible for me. The amount I am owing is RM180k. I paying Jabatan Insolvensi RM300 per month. If I continue paying like that, it will be like a life sentence to me... but... how I can find RM180k to pay back the bank...
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answered on May 10, 2019 at 20:45
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edited May 24, 2019 at 22:37
 
@Icebaby

I am quite surprised that although you have posted here in this forum before and have indicated that you have reported in to Jabatan Insolvensi Malaysia and you're now paying RM300 monthly..  you have not read properly on what is "Bankruptcy".

Continue with your RM300 for 3 years (October 2017 - Bankruptcy Act 2017 - Amended).
For these 3 years, with effect from the date you reported in for the case management to Jabatan Insolvensi Malaysia, make sure you follow strictly the terms and conditions.. and pay promptly..!!!

For the terms and conditions read here:-

https://www.lawyerment.com/library/kb/Insolvency/Bankruptcy/1010.htm

One of the critical condition is that, in order to make an application for bankruptcy discharge, for that matter, an earlier discharge (before the 3 years), one has to fulfill the "target contributions" of more than 50% of the TOTAL DEBTS,  in short, the total Proof of Debts based on your bankruptcy amounts (Not only the bank or creditor that has bankrupted you).

Correspondingly, if you have paid more than RM90,000 (based on one debt) on your total monthly contributions, you can apply for a Discharge from Bankruptcy.

However, do not be in despair, personally I believe that if a bankrupt will to be punctual in monthly payments and adhere to all the terms and conditions of the bankruptcy, one can apply for a discharge after 5-6 years, even if the target contribution of >50% is not met. Bankruptcy is not to punish a person for life.. how many lives have a human got? We are not cats with 9 lives..

(Caveat : The above article is written by a Q&A registered User. It represents a personal point of view and is in no way associated with others in this forum nor be regarded as legal advice.)
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answered on May 10, 2019 at 21:48
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edited May 24, 2019 at 22:39
 
Well, I've been paying them for almost 4 years... I guess I will just continue to pay for 1 or 2 more years then only try to ask if I can be discharged without making settlement to the bank.
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answered on May 11, 2019 at 00:21
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edited May 24, 2019 at 23:32
 
@Icebaby

4 years ago? So you were under the old bankruptcy rules and regulations. The period is 5 years case management.

The good news is that, there is no "target contribution" for those who were made bankrupted before October 2017.

If that is the case, make an application after the 6 years, in the 7th year.

The new bankruptcy rules and regulations have pros and cons. Those with high debts amounts have a slimmer chance to be discharged earlier due to the 50% target contributions.

Just keep this knowledge at the back of your mind when the time is ripe for you to make an application.

And... to be clearer with the terms
1. Full Settlement
2. Negotiated Settlement (ask for discounts)
3. Application to the High Court (Direct) even if Jabatan Insolvensi Malaysia refuses to allow you to discharge. If you have abide to all the terms and conditions, the High Court Judge may rule in your favor.

A important point and condition, is .. YOU MUST HAVE SUBMITTED THE INCOME AND EXPENDITURE (I&E) EVERY 6 MONTHS .. this is in bankruptcy law.. DID YOU?

Good Luck to you dear..
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answered on May 13, 2019 at 14:56
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edited May 24, 2019 at 23:34
 
Well, I've been paying them for almost 4 years... I guess I will just continue to pay for 1 or 2 more years then only try to ask if I can be discharged without making settlement to the bank.

The ugly truth is, very few people got discharged after paying for 5, 6 or 7 years.
Take good care of yourself.
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answered on Jul 1, 2019 at 17:52
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edited Jul 18, 2019 at 02:41
 
@Icebaby

You can go and buy NST and the STAR newspaper on every Saturday. Last Saturday, many bankrupts were discharged under section 33(A) upon completion of their case management.
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