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Bankruptcy and Statute Of Limitations

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asked on Jul 2, 2019 at 17:30
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edited on Jul 22, 2019 at 02:22
 
@Jeff005,

I was doing some reading on Agensi Kaunselling dan Pengurusan Kredit (AKPK) and saw one of your replies, which read as follows:

Do note that there is a Statute of Limitation of 6 years to sue you in a court of law. If the banks have not start a lawsuit from the date of default of repayments to the bank for a 6 year period, you can use this Limitation to set aside any lawsuit.
I have 2 questions regarding this, if I may:

1. How exactly do we use it to set aside any lawsuit? By writing to the bank/bank's lawyer and stating this Statute? Or do we do it at the courts?

2. If 6 years is the limit, I am wondering how the bank that bankrupted me (https://www.lawyerment.com/answers/questions/12140/misinformed-about-date-for-creditor-s-petition) was able to do so for a debt that (if I remember correctly) was inherited from the defunct MBf, which I had not been paying even when it was still in existence? Or it could have been another card, but even then I stopped paying a long, long time ago (not sure about the exact years, but it sure as heck is longer than 6 years)

After that, I did a further search and found your post on the 6 year limitation clause (https://www.lawyerment.com/answers/questions/9873/6-years-limitation-clause), about which I have one question, if I may.

...but there are circumstances where the limitation period itself is renewable, such as the instance where debt is acknowledged or part payment is made in respect thereof under section 26 of the Act.

Section 27 further qualifies this however; by stating that such acknowledgment must be in writing. The claimant is required to specifically plead this acknowledgment or else it would struck out.
Here's the thing: my wife had stopped making repayments on her credit cards at least 10 years ago (whose amount has ballooned to ridiculous levels),  but 6 months ago, due to having been truly frightened by what happened in my case, she wrote a letter to her credit card companies regarding her intention to seek AKPK assistance for her credit card payments. The letter states:

Re: (Credit Card Number)

The above subject-matter refers. I'd like to inform you that I will be seeking the assistance of the AKPK to help manage and repay the related debt.

In the meantime, I'd be much obliged if you could acknowledge receipt of this letter.
Does this constitute "acknowledgment of the debt" in writing? (We haven't made any actual payments at all)

We also went to one of the banks to request for the latest statements (It had not been sending any statements for some time) Does that affect anything?

Then, a couple of weeks ago, we received the standard bank letter stating they have appointed an external collection agency, etc., etc., and we also received a letter from the collector which states, among other things:

"Your account is seriously overdue; please settle the full outstanding amount or revert to us with a settlement proposal within 14 days. Otherwise we shall take all necessary steps including but not limited to legal action to recover the total debt from you.

Legal action may include:

1) Write of Seizure And Sale
To seize and action all moveable assets in the place where the cardholder is staying now

2) Bankruptcy
To freeze all assets, bank accounts and prevent any departure from Malaysia
I am aged 56 and retired from active employment, and on top of that am a bankrupt; my missus is still working but her employment is specifically contingent on her NOT being a bankrupt. Our children are still young and she is the only active breadwinner, and we are afraid, very afraid, that if things take a turn for the worse, we might lose our house, our income, everything.

Any light you -- and other knowledgeable members of this forum -- can shed is truly, truly appreciated.

Thank you.
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1 Answers

answered on Jul 4, 2019 at 12:43
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edited Jul 22, 2019 at 02:24
 
@kennylee299

I believe you have already replied to your own query by the providence of letter of admission and existence of the debt and the offer to repay the debt via AKPK.

Your wife's case, get the following latest confirmations on
1.  CCRIS
2.  CTOS (and/or others)
3.  The house, under Joint Names? What is the balance of bank debt vs market value? Any shortfall? Take note if under lelong (auction) the value can be as low as 50% of market value depending on circumstances and location.
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