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My bank account was deactivated and I went to Jabatan Insolvensi Malaysia. I am scared what's ahead and need some guidance.

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asked on Nov 12, 2019 at 22:35
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edited on Mar 21, 2020 at 17:07
 
I would really appreciate any help I can get here..

Here's how my story goes:

Last Thursday, 7 November 2019 I noticed all my banks account have been deactivate when I want to withdraw money. I called the bank and the bank said they have sent letter on 6 November 2019 but I was no longer stay at that address. I googled and found some previous notes that I should report to Jabatan Insolvensi Malaysia immediately in which I did the next day on 8 November 2019. Got the assigned Official Assignee (OA) details and she emailed me the same day my meeting with her on 20 November 2019.

My concern:

1. I am working now and if I don't get my account activated on time by 27 November, I am afraid my employer will be curious. I can't afford to lose my job as I need it to pay these debts.

2. I don't know yet which banks filed for bankruptcy against me but I suspect a credit card debt with HLB which was long over due, may be more than RM50k. If I go to the HLB and discuss with them about my debts and if I can (again if I can) manage to ask my family if they can help loan me the amount, and make full settlement, can I then seek for discharge or annulment?

3. I still have other active loans such as:

House: due for 12 months now 
Car loan: no default
Personal loan: no default at the moment.

For my housing loan, I plan to take my Account 2 from EPF to make the payment which I have sufficient amount to do so.

Please please give some advice.

Thanks.
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answered on Nov 13, 2019 at 02:24
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edited Mar 21, 2020 at 17:07
 
1. I am working now and if I don't get my account activated on time by 27 November, I am afraid my employer will be curious. I can't afford to lose my job as I need it to pay these debts.
The newly account for salary may not necessary be your old account that has been deactivated. It will be the bank prerogative once you get your Official Assignee (OA) approval. 

Get help or beg the lady Official Assignee to speed up the approval.

Try to request the Official Assignee to allow you to open it with the same bank you normally get your salary. Then try influence the bank to use back the old account.

2. If I go to the HLB and discuss with them about my debts and if I can (again if I can) manage to ask my family if they can help loan me the amount, and make full settlement, can I then seek for discharge or annulment?
I am afraid its too late already. Once bankrupted you to have pay all the others creditors as well and not only the creditor that has bankrupted you.

3. I still have other active loans such as:

House: due for 12 months now
Car loan: no default
Personal loan: no default at the moment.

Eventually these 2 secured loans agreement will be terminated by the bank to abide by the Bankruptcy Act.

Consult your Official Assignee again if she could offer the best options to solve with minimum impact to you.
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answered on Nov 13, 2019 at 08:33
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edited Mar 21, 2020 at 17:07
 
Thanks @rara_.

I am afraid its too late already. Once bankrupted you to have pay all the others creditors as well and not only the creditor that has bankrupted you.

Refer to your answer, does it mean even if I want to make a full settlement with the bank that bankrupted me, I can't be discharged?
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answered on Nov 13, 2019 at 08:35
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edited Mar 21, 2020 at 17:09
 
Also, @rara_ for answer no 1. Even with the letter from Malaysia Department of Insolvency (MdI), the bank can still decide if they allow me to use same account or not?
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answered on Nov 13, 2019 at 14:59
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edited Mar 21, 2020 at 17:13
 
Refer to your answer, does it mean even if I want to make a full settlement with the bank that bankrupted me, I can't be discharged?

Yes, I am afraid it is, unless the bank that bankrupted you is the sole creditor registered with Jabatan Insolvensi Malaysia.

Even with the letter from Malaysia Department of Insolvency (MdI), the bank can still decide if they allow me to use same account or not?

Letter from MdI is only the approval for opening an  account with the bank. 
Whether you can use back the old account is very much in the hands of the bank.

I came across a bankrupt who managed to use back his old account.
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answered on Nov 13, 2019 at 19:49
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edited Mar 18, 2020 at 16:56
 
@rara_, what does it mean by sole creditor with Jabatan Insolvensi Malaysia? Can help explain further?
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answered on Nov 13, 2019 at 19:59
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In order to get a discharge and annulment at this point, you need to pay in full all debts to all creditors.
This means house loan, personal loan, car loan and credit card loans.

Even after you settle all debts in full, it will take a few more months paperwork, lawyer work and court work to get a discharge or annulment.
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answered on Nov 13, 2019 at 20:09
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edited Mar 18, 2020 at 16:56
 
@william chan,

What if I managed to talk to my other banks that I have active loan that I can continue to service my loan as usual because I can say now I have enough monthly income to serve all my loans. Just only a month ago after my spouse business has stabilizes and with my monthly expenses I can commit to serve all my loans with extra RM2k in hand to spend? Will Jabatan Insolvensi Malaysia take that into consideration later? My appointment only next week and I cant sleep well at night thinking if I can't work myself around it.
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answered on Nov 13, 2019 at 20:18
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If you read your loan agreement fine print, it says that you are automatically in "default" if you become a bankrupt.  It doesn't matter whether your payment is good or whether you are good at talking to them.

Don't withdraw from EPF at this point.  Save it for your retirement days.
Your house will be auctioned in a few months time, whether payment is good or not.

Unfortunately as current property market is very soft, your house may be sold at about half the price that you bought.
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answered on Nov 13, 2019 at 20:28
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edited Mar 18, 2020 at 16:45
 
I read somewhere that a bankrupt can negotiate to keep their house and continue paying their loan as usual? What about that kinda case @william chan? 
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answered on Nov 13, 2019 at 20:57
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edited Mar 18, 2020 at 16:45
 
If your house is fully paid up (not charged to a bank), then you can negotiate with Jabatan Insolvensi Malaysia (JIM) to keep the house.

However since your house is still under loan, JIM has no say. Loan Bank is in control.

The most the bank will do is to pretend to close one eye, for a few months to collect some installments but will eventually 'lelong' (auction) within 1 year. If you try to negotiate with the bank, it would mean that they can no longer close one eye for a few months, so they must reject all installment payments from you and lelong immediately.
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