Guidelines for EPF withdrawals for bankrupts and those under bankruptcy proceedings

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asked on Oct 3, 2014 at 21:12
edited on May 12, 2016 at 09:05

Your posting would start or add additional issues to new forumers and to those hoping to withdraw EPF @50  @55.

Jane withdrew under the old EPF format which has got 3 accounts. Since 5 or 6 years ago it has merged into Account (1) (70%) and Account (2) (30%) for current contributions.

Old Format
@50  Can withdrawal (1/3) of total amount.(i.e. 33.33%)
@55  Can withdraw ALL.

New Format
@50  Can withdraw ALL in Account (2) only. (In theory 30% of total Amount for those not who has not withdrawn before)
@55  Can withdrawal ALL.

Withdrawals are allowed BEFORE @50 at Account (2) ONLY for housing loans installments, buy new house (1st house), settle partial housing loans, education, medical. For more details PLEASE go to the EPF (KWSP) website. So, for current withdrawals at Account (2) may not be exactly 30% of the total amount in EPF.


Notes ONLY:-
If you leave your money in EPF, Jabatan Insolvensi Malaysia (JIM) cannot take your money to pay your creditors. The moment you withdraw, by right, EPF has to make the cheque out to JIM. JIM may withhold a portion of it to pay your creditors, sometimes a big chunk if your withdrawal also a big chunk, say RM1M. The balance give you back. In the event if you decide to leave this horrible world, all the monies goes to your nominees. Zero $$$$ to JIM for creditors. So, PLEASE UPDATE YOUR NOMINEES LIST now!

If you still forget, and or the nominees is also not around anymore.. Say goodbye to all your hard earned monies. All goes to Bank Negara Malaysia (BNM) then to JIM then to your creditors. If you don't have any nominees in mind, you can nominate me. Thank you very much!


There may be some breathing space for you. READ THROUGH ALL THE SEPTEMBER 2014 POSTINGS.

Please be more specific when doing your posting enquiries. A BANKRUPT is a confirmed bankrupt. A person under BANKRUPTCY PROCEEDINGS is not a bankrupt.
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answered on Oct 4, 2014 at 05:59
edited May 14, 2016 at 05:41

After reading thru the posts, is it right that EPF can still be withdrawn by cash cheque if you are a bankrupt so you can keep the cash to yourself, need not pay Jabatan Insolvensi Malaysia (JIM)?
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answered on Oct 4, 2014 at 06:56
edited May 14, 2016 at 05:49
8 years ago, I was given a bank cashier cheque. They may have been a change in current policies. I really dunno. If you can get a cash cheque, cash it out and 'lari' lo.. If you are not reporting to Jabatan Insolvensi Malaysia (JIM), who knows where you are. If you are reporting to JIM, 'buat bodoh' lo.. If they find out, "wang sudah habis bayar Ah Longs.."

If you are maintaining a joint savings account, cash out the monies and hid it. The main issue now is how to open the joint account as in the case of "sad woman". That is why there is only one chance to make a full withdrawal before JIM finds out. Spreading out the withdrawals has its own risks too.

What was written in law is that JIM would inform Bank Negara Malaysia (BNM), BNM will closed all bank accounts of the bankrupts. But nothing was written that it will close joint savings account, by right it should. And that with the permission from the Director General of Insolvency (DGI), you can open a account for the purpose of banking in salaries and they monitor that account. The trick now is to try to open a joint savings in foreign banks especially new ones so that the foreign bank has not updated the records and may not access info from "National Bank Pool" for bankrupts for verification purposes. By this way, any chequq from EPF or others can be banked in.
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answered on Oct 4, 2014 at 23:13
edited May 14, 2016 at 05:59
@roadrunner bro,

Kind "Traveller" has deliberately activated an old post for our reference. Go:

So, 'buat bodoh' to get our cashiers cheque.

For the same token, EPF would be getting smarter in their verification methods. So, if you are withdrawal first time @50, they may ask you to photostat your savings account (Refer to "sad woman" ..."did you know" ) if you keep insisting for cashier cheque. That is also why I hesitated in posting another "risky" method which I have not personally tried before. What we put in public forum is for ALL to see including those who may be working in EPF. So, if it works for me, I get pass it, the next guy gets jam up because of new controls set up.

Likewise there are other methods now once we ask and share our views and experiences. Recently you posted..

"being bankrupt will help debtor"
"I never knew there are so many ways for bankrupts to survive" wrote by our "yen yen". "She" has hinted to us ALL.
"You have let the cat out of the plastic bag" I wrote (stealing brakerunner ID).
We didn't expand on the topics. Even my "sifu" kept mum over those topics as those methods have not been proven and tested by any of us. Bro "bunker" replied "Warning" "Waarning".

By sharing and expanding our views, we may get unexpected results. The safe method is still try to get a joint savings account opened. Perhaps "sad woman" can try to write and ask "aurora" for advice as aurora is working in a commercial bank.

Have a great weekend.

Am still wondering whether "yen yen" would accept my date..
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answered on Oct 15, 2014 at 21:57
edited May 14, 2016 at 06:02


New development today. Just as I thought Employees Provident Fund (EPF) has set up new controls for withdrawals. For your info, go and download current EPF withdrawal application form.

"ARAHAN BAYARAN"..  You can get a CASH CHEQUE provided you go to get a letter from Jabatan Insolvensi Malaysia (JIM). I think under the new EPF/JIM arrangements, JIM will give a letter just stating "For the purpose of EPF only", this person is not a registered BANKRUPT with JIM now. With this letter, EPF will/can issue a CASH CHEQUE under the member's name.

So, if your bank creditors or even Bank Negara Malaysia (BNM) freezes all bank accounts, this is the solution for a lot of MALAYSIANS. If it is a confirmed bankrupt, of course the story will be different. If immigration has not "ban" your travelling stauts, means you are not being "Bankrupted", then go withdraw EPF as soon as possible when the age permits.
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answered on Oct 16, 2014 at 02:21
edited May 14, 2016 at 06:06

If I am not wrong, I believe this form is is for members who wish to change their method of payment or probably lost their banker's cheque or some other reasons and not for "arahan bayaran."

EPF will give you another document (looks something like this one) and it is a "arahan bayaran request form" in which you must state the reasons for your application,  like no bank or active bank account because....bankruptcy or whatsoever reasons and the higher authority will approve or disapprove. You also required to make out a letter supporting your application preferably with supporting documents as proofs.

They are really making it more difficult for all.
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answered on Oct 16, 2014 at 03:13
edited May 14, 2016 at 06:13
My dear Jeff, you are confuse once again.

A none bankruptcy EPF member without an active bank account or unable to open one locally are not required to prove their bankruptcy status. It only applies to those bankrupts who wish to withdraw under "arahan bayaran" (probably the only method of payment for bankrupts who do not have a bank saving account controlled by Jabatan Insolvensi Malaysia (JIM)), in which they need a written letter from JIM to uphold their status. The only way a none bankruptcy (but bank blacklisted person) is able to withdraw their Employees Provident Fund (EPF) savings is via foreign bank draft and the person need to travel abroad to get their cash via their foreign bank account, in which a bankruptcy would not be able to do so because his/her passport is with JIM or barred from living the country. JIM does allow bankrupts to travel abroad only on very strict justifiable conditions like some died or for medical reasons. Like Jeff said, something to explore.    

Just not too sure how this letter looks like and what sort of information are required from JIM, furthermore will JIM impose any restriction on a bankrupt EPF member when he/she requests for this letter.

This is the main issue which need to be addressed for bankrupts because it looks like JIM had taken over EPF policies and your EPF savings are no longer safe even under EPF hands.

Seems like EPF-JIM-BANKS are now working hand-in hand to collect their dues from your EPF's savings and don't "harap" for automatic bankruptcy release laws to be released soon. Don't you realise, that this is the banks' long-term plan and it is now the right time to pick their pickings (long-term investments).

Bankruptcy law in Malaysia is not to help the people to free themselves from debts and start a new life but to make your life a living hell, no work, no status, no bloody bank account, no travelling and so on.

EPF saving is no longer safe and for those who are bankrupts, its just to fight for your humanity rights before it is too late. In the close future we will see many bankruptcy old people wondering the streets homeless. The day will come, mark my word, unless you have good kids, hopefully.    

Hopefully someone out there have seen this said JIM letter, please share.
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answered on Oct 16, 2014 at 23:02
edited May 14, 2016 at 06:15

Have you come seen this Jabata Insolvensi Malaysia (JIM) letter required by Employees Provident Fund (EPF)? If yes, please share. Thanks
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answered on Oct 16, 2014 at 23:23
edited May 14, 2016 at 06:16

No, I have not been summon to report to Jabatan Insolvensi Malaysia (JIM) yet. This letter info is given from your post. Sorry, I just make assumptions again, when Employees Provident Fund (EPF) ask people to go JIM nowadays to get "letter", there must be reasons they are doing so. There are unverified reports of 60 new bankrupts being made every day, so they need to have new controls to curb withdrawals. Like you have written, the money they "rampas" have got banks hidden agenda. Your info is most helpful to some of us victims and we need to fight this injustice. It is the people hard earn savings. Thank you again.
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answered on Oct 17, 2014 at 07:21

I hope someone had requested this letter before from JIM. I am sure EPF do not have a standard copy specifically designed for bankrupt EPF members. Would be great if we get hold of this document and review and study it. If this letter is drafted and approved by the insolvency officer in charge, then for sure a bankrupt will have huge problem getting their EPF savings, unless a "keputusan carian online/counter" which is easy to be obtained either from myeg or from the insolvency department counter is only required (not necessary a letter) and sufficient for EPF, then bankrupts would be able to request for Arahan Bayaran and cash out the whole amount.

Anyone has any idea? Please share.
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answered on Oct 17, 2014 at 07:26
edited May 14, 2016 at 06:19
I hope no one is confused...when I write JIM I mean Jabatan Insolvensi Malaysia and not Jabatan Imigresen Malaysia. I just realise this, sorry.
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