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How to be released from bankruptcy? CGC requesting for a lump sum payment.

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asked on Jun 26, 2019 at 11:40
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edited on Jul 7, 2019 at 00:57
 
Really need help as this is affecting my daily life. Asking to help my mother-in-law to lift up the bankruptcy status on her.

My mother-in-law is a 68 year old, diagnosed with renal cancer stage 4 and the cancer has spread to her brain with 2 lesions. She is currently not working and only depending on her children to manage herself. She owns a house in Melaka, which my husband is paying for it RM1,850/month. My husband is currently under Agensi Kaunseling dan Pengurusan Kredit (AKPK) as to help to pay for the house. Original monthly installment for the house was RM2,850/month before joining AKPK. They are trying to sell the house but unfortunately the bankruptcy status of his mother is not allowing them to do so. She has received a letter from CGC requesting for a lump sum payment of RM60,000 in order to remove her bankruptcy status.

Here I am, asking for help, if you kind souls have any ways to suggest, or letter formats you can share for me to help them expedite this.

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8 Answers

answered on Jun 27, 2019 at 16:00
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edited Jul 7, 2019 at 00:58
 
Asking to help my mother in law to lift up the bankruptcy status on her. 
As a bankrupt, did your mother report herself to Jabatan Insolvensi Malaysia (JIM) for her case management?
 
She owns a house in Melaka which my husand is paying for it RM1,850/month. 
If really she owns the house then her creditor would have terminate the loan and auction the house. 

What was the cause of her bankruptcy and when?
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answered on Jun 29, 2019 at 01:13
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edited Jul 8, 2019 at 02:12
 
@Hanskacak

letter formats you can share for me to help them expedite this
What format do you want?
Just reply to CGC whether you can pay the RM60K or not.

And you better do things fast from now. I have too many relatives and friends who can move on within months of having stage 4 cancer of any type.

You have tendered too little details on the bankruptcy.
First, when was she bankrupted?
Second, has she reported in to Jabatan Insolvensi Malaysia (JIM)?
Third, has she got other debts?
Fourth, have you got RM60K to settle first.
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answered on Jul 5, 2019 at 11:09
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edited Jul 17, 2019 at 15:21
 
@rara_

Thanks for your response. To answer your questions:

As a bankrupt did your mother report herself to Jabatan Insolvensi Malaysia (JIM) for her case management? 
Yes, she has been paying to JIM for nearly 5 years now. She is expected to reach her 5th year mark on this coming November.

If really she owns the house then her creditor would have terminate the loan and auction the house. 
The house is under 4 names. My late father-in-law, my husband, his sister & my mother-in-law.

What was the cause of her bankruptcy and when?
I was told that she was a guarantor of a business loan some time back.
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answered on Jul 5, 2019 at 11:14
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edited Jul 17, 2019 at 15:38
 
@jeff005,

Thanks for your response. To answer your questions:

What format do you want? Just reply to CGC whether you can pay the RM60K or not.
I have drafted a letter on the inability for her to pay back the RM60K. Now awaiting Institut Kanser Negara to revert back on the medical report requested. It will take a month for the report to be out.

First, when was she bankrupted?
2013

Second, has she reported in to Jabatan Insolvensi Malaysia (JIM)? 
Yes. She has been paying to Jabatan Insolvensi for nearly 5 years now. Reaching her 5th year mark this coming November.

Third, has she got other debts? 
Yes. She got a loan with Tekun. (as I was told)

Fourth, have you got RM60K to settle first. 
Unfortunately we don't.
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answered on Jul 7, 2019 at 22:31
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edited Jul 17, 2019 at 15:44
 
@Hanskacak

Sorry to know your mother-in-law bad prognosis.

I am not very clear about your mother-in-law situation as I do not own a house before (ever). But I have the followings concerns by reading past postings with house problems under this forum.

Below are my concerns.

1.  If your father-in-law died "intestate" (without leaving a WILL), your mother-in-law's share will still be locked under the bankrupt's estate. Being discharged under Medical Grounds may not wipe out the bankrupt's estate.

2.  Without a WILL (father-in-law-deceased), it will take a year to get a letter of administration order from the High Court.

3.  Even if can sell the house of which all survivors must be located and agreeable to dispose of this property. And as this is under a housing loan with a bank, it may have other issues.

4.  Another issue will, can be from "Tekun", must settle this creditor too. Please do not just of think of CGC only. Paying RM60K to CGC will not remove her bankruptcy status if there are any other Proof of Debts Creditors. It will only discharge her debt with CGC but NOT her bankruptcy status. Don't simply waste moneys, even single sen saved can be used to make her life more comfortable now.

5.  Another issue is very subjective which I had been involved in family matters. Noted that "cancer has spread to her brain with 2 lesions". It would be prudent that your mother-in-law make a WILL to pass her share to her son and by making an executable WILL, her mind must still be alert and not clouded by a disease. 

6.  My personal opinion is that your mother-in-law's case may have complications down the road, it would be prudent to seek accurate advises from real practicing lawyers.

Time is no longer a luxury for your mother-in-law..
Do some homework with the TEKUN issue (you may discuss with your mother-in-law's Official Assignee}.

(Caveat : The above comment is written by a Q&A registered User. It represents a personal point of view only and not be regarded as legal advice.)
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answered on Jan 22, 2021 at 12:16
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edited Jul 24, 2021 at 12:42
 
@HansKacak

Firstly.. I am sorry for the loss of your mother-in-law.
Nope, you did not update here. The current email is the first from you to me.

Secondly.. I wish to address some legal issues in your email to me.

Quote:  "But I hope you're up to the challenge of advising me the next steps."

My answer:  Nope, there were never any challenges from me. I'm never in the legal services, just an ordinary Q&A User in this forum. All my comments are personal in nature and is "non-legal". And I have always been expressed it in the form of a "caveat" as well as in my Profile too. If a Questioner wants a legal advise, please consult a Legal Attorney especially when it involves property.

Your husband case involves "Inheritances" and is associated with Property Distribution as in Shariah Laws of Al Farid which is beyond my scope of knowledge.
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answered on Jan 22, 2021 at 12:42
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edited Jul 24, 2021 at 12:50
 
@HansKacak

Below are just personal comments scratching the surface of your husband predicament.

1.  You have not replied on the inheritance from the Father, and now the Mother, everything becomes more complicated.

2.  A "pelepasan bankrapsi" on the death of a bankrupt, is a conditional discharged which does not wave away the liabilities of bankrupt (Civil Laws). I remember it was also stated in Shariah Laws.

3.  Regarding the case of your sister-in-law.. Quote:
But the buyer acted out harassing & black mailing my sister-in-law that they will saman, saman tribunal and finally black mailed to report police.

The slip signed by your sister-in-law is legal as several requirements as in contracts/agreements were present inside. But this agreement on the payment of the deposit is rendered defective as the buyer did not insist to view that the house grant which is registered in 4 persons. All 4 named co-owners must sign in order to be a valid agreement and a further legal S&P agreement to be effected for the transfer of the property to the new buyer. From the Consumers Tribunal, they can get back the deposit but cannot enforce to the sale of this house as it is both tied up with Insolvency plus pending settlement of the inheritance issue.

(Caveat: The above comment is written by a Q&A registered User. It represents a personal point of view only and not be regarded as legal advice.)
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answered on Jan 22, 2021 at 14:38
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edited Jul 24, 2021 at 12:51
 
@HansKacak

It would be advisable to get advises from a competent lawyer.
But, if your sister-in-law could not afford to repay the deposit now, she probably could not afford lawyer's consultation fees.

You have to do some detailed research with your husband.

1.  Get the actual loan agreement.
2.  Check and read carefully who are the borrowers and/or co-borrowers or even guarantors.
3.  It is quite unusual/rare that they have 4 co-borrowers to a single unit (but possible).
4.  Get me the market value during this pandemic time.
5.  Get me the balance of the housing loan and how many more MM/YY to go.

@Hans, consulting on lawyers will be asked the same questions.

Is your husband and you, sister-in-law staying in that house now?
Rented out the extra rooms?
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