Can creditor file bankruptcy charges against me while I am overseas?

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asked on Mar 7, 2020 at 07:19
edited on Aug 17, 2020 at 15:56
I have unpaid debt amounting to RM39k with Sabah Credit corporation. Lately they SMS or Whatsapp me that they will file bankruptcy charges against me if I don't settle a minimum of RM17k immediately which I could not afford.

Can they file bankruptcy charges against me without my presence in court since I am oversea?
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1 Answers

answered on Mar 7, 2020 at 07:51
edited Aug 18, 2020 at 09:24
1. A Judgement Creditor can file Bankruptcy Notice and/or initiate Bankruptcy Proceedings without the need for you to be in Malaysia or to attend Court, once the debt exceeds RM50K.

2. But it is not easy to bankrupt a Judgement Debtor if he/she is not residing inside Malaysia during the last 12 months.

You have to appoint a lawyer to attend your case and make such declarations.

But, in order to do so, if one is working illegally overseas, the creditor's lawyer would submit that there is wilful abscondment to the debt by going overseas to work. The other reaction from the creditor lawyer will then notify Immigration Malaysia that a judgement debtor is working illegally overseas and that is another Immigration Infringement of which can be levied against the passport holder and severe repercussion from Malaysia Immigration. The Immigration can BAN 3-5 years of issuing a New Passport once the old passport expires.

If you are in a position to negotiate, negotiate a workable repayment schedule acceptable to the Creditor. There is actually no point (Costs wise) in trying to bankrupt a debtor of your age who is overseas.

Another point to note is that the Whatsapp message that is send to you could be from Bill Collection Agents appointed by the lender.
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