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Trading company owing customer RM70000. Will I be declared a bankrupt before I can afford to pay back?

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asked on May 4, 2013 at 00:13
by   eric_ocw
edited on May 16, 2016 at 06:08
 
My company is a trading enterprise company own by myself only. I have a trading deal with my customer and the sum is RM140,000. He has paid me half of the sum money as deposit which is RM70,000 in January this year and I should deliver the item within 6 weeks after the deposit has been made.

The problem starts when I failed to deliver the product to my customer. My company's business failed because of my money management problem. Now he keeps chasing for the money back, and I know I am wrong on this situation. I have try to negotiate with him and suggest to him that I willing to pay back the deposit in installment and interest. But he refused to accept the idea and told me that he will make a police report and I will receive a summon from his company. I am so headache, I cannot sleep well, scare and worry on the future legal action taken by him.

For your information, I have closed my business after that. I am jobless and only have around RM10,000 with me now. I plan to work at oversea like Singapore for 2-3 years to save money and come back to repay the amount. I have few questions on legal issues. Any good suggestion/solution is highly appreciated.

1) In case the Court orders me to pay him, will my saving account be frozen by bank if I open an account in Singapore?
2) In worst case before I can pay him back, will I being declared bankrupt by the Court and need go for jail for this business failure?
3) Can the Court order police to arrest me at overseas country like Singapore if I fail to attend to the summons filed by him?
4) Any other solution?

I really hope any fast response from your side. This problem causes me to suffer from depression.
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3 Answers

answered on May 8, 2013 at 14:31
by   superzcool
edited May 16, 2016 at 06:11
 
I am not an expert in this but here is my opinion.

First is your company a sdn. bhd. or sole proprietor?
If its sdn. bhd., then you are safe. If sole proprietor then, you are liable. They can file for for bankruptcy against you.

If they file bankruptcy, means the court can auction or 'lelong' your property to pay them back. All this will take time. As long you are not yet declared a bankrupt you can travel.

This is a commercial case and they can't get you if you are in another country.
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answered on May 2, 2016 at 18:38
by   Wilson
edited May 16, 2016 at 06:12
 
If sdn. bhd. is it totally no need to be responsible? The director name is him how come he is safe?
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answered on May 3, 2016 at 02:14
by   vkpc
edited May 16, 2016 at 06:12
 
If sdn. bhd. is it totally no need to be responsible? The director name is him how come he is safe?

Under company law, a company is a separate entity from the directors.
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