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 (In theory 30% of total Amount for those not who has not withdrawn before)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 17, 2014 at 07:51
edited May 14, 2016 at 06:22

If you have never seen an insolvency officer then probably you might not have an active file, you could probably had been removed from their records, possibly not even in their system (not discharged by the court but legally still a bankrupt), because probably they are unable to trace you from your last known address they have. Have you ever checked?

So another advise is don't change your NRIC or Driving License address to current if you wish to stay hidden.

Are you aware that there are tons of files with Jabatan Insolvensi Malaysia (JIM) and just like our local court, files do go missing or destroyed by rats, termites or whatsoever. JIM don't even have sufficient officers to monitor the amount of bankruptcy people nowadays. So if you are a small-timer bankrupt than probably JIM will ignore you until its time to take your Employees Provident Fund (EPF).
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answered on Oct 17, 2014 at 08:17
edited May 14, 2016 at 06:46
Found this write up in this forum about 3 years ago. Not too sure if its reliable, but if it's true than Employees Provident Fund (EPF) requires a letter from the Jabatan Insolvensi Malaysia (JIM) insolvency office and that's not good...

I am 50. Wanted help, to know my rights to withdraw my EPF. EPF told me to get a letter of declarations from Insolvency Department in order for them to get my EPF withdraw process.

My problem starts here... The Insolvency wants to "Interview", fill up the forms Q&A of my current living and wanted to take "PART" of my EPF to pay banks. The account 2 money can't even last for 2 years for me to reach 55! Do they have "EVERY RIGHTS" to decide for us, to take our EPF life age savings (protected by the Government and EPF) to pay banks " WITHOUT " our willingness or permission? If we don't agree....The Insolvency has any of its 'RIGHTS" not to issue the " DECLARATION LETTER" for us to apply our EPF? Then they are not allowing us our "ENTITLEMENT and RIGHTS of CITIZEN" to apply of our EPF. So what we can do? Who should we refer if so to happen? Can we inform our Government or Ministry for help as our EPF savings have not been protected as have been guaranteed. As Malaysian law does not allow any "CREDITORS" to claim our EPF... but the Insolvency claiming for them. Silently if we are forced to do so. Please HELP! YOUR VALUABLE ADVICE VERY MUCH APPRECIATED!
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answered on Oct 17, 2014 at 14:08
edited May 14, 2016 at 06:48

Thank you very much for your kind advice not to renew NRIC or kad pengenalan (KP) address. I had just renew my driving licence for 5 years in July 2014. I shall be more vigilant and careful from now onwards. Thanks again.
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answered on Mar 27, 2015 at 10:11
edited May 14, 2016 at 06:56
Just "buat bodoh". Go to the EPF counter and tell them you want to withdraw be it 50, 55... or any that enable you to do so.

Now, it is even easier. You just need to produce your identity card (IC) and the EPF will do the rest. At the end of the process, you'll get an acknowledgment of withdrawal. If you choose direct transfer to your account, you'll get your money within 3 working days. If you do not have a savings account (EPF will not direct transfer to joint account), within 5 working days, EPF will send you a notice to pick up the bankers cheque under your name from the EPF office. Deposit the cheque into your joint account and within 3 working days... your money is in.

If got problem... or required to go to Insolvency to get a letter or surat... just do as been asked to. "Boleh dapat duit...tapi kena potong Insolvensi. Berapa banyak, saya tak tahu."
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answered on Mar 27, 2015 at 19:48
edited May 14, 2016 at 07:00

Thank you very much for your updates and reconfirmation of the methods written in this forum contributed by various forumers .. DO WORK..

If you do not have a savings account, EPF will not direct transfer to joint account
That particular EPF officer has given wrong info. Can use joint account. I just done one on Monday afternoon and received the monies on Wednesday morning.

For the past 3 years I have made 5 small withdrawals. 3 times I have to argue with them about Joint Names Account. Monday also. Their IT systems down and I have to submit account number again. Problem solved when I ask to speak to their "supervisor".

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answered on Mar 27, 2015 at 23:22
edited May 14, 2016 at 07:05
Oh..itu officer sudah bagi wrong info lah! I tried to avoid arguments. When she suggested cheque, I quickly agreed. My objective is just to get my money. Ha..ha..!

Never mind, this forum is about experience sharing. So far..all suggestions and recommendation has been tried and successful.

I am glad that I came to this forum.

Don't panic.... stay cool & get info. Don't be threaten by bill collector... do not be afraid if you get letter from the lawyer...

If you are a bankrupt or blacklisted... its not the end of world yet!

Find alternatives to get resourceful income... just like Jeff a.k.a. Bladirunner did. Its no harm being a street hawker. You still have income to keep going. I do small scale home based catering. Business is good. Fast money and flexible working time.

I am not being bold... just trying to help lost, clueless soul. Don't worry! Be happy. There are bunch of people here to assist you.
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answered on Oct 18, 2018 at 18:55
edited Oct 19, 2018 at 00:42
I have a question... what will the impact be if you are declared a bankrupt and you are no longer a Malaysian citizen?
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answered on Apr 14, 2019 at 01:22
Would like to know what will happen if you no longer a Malaysian citizen and living abroad, what is the implications when you have bankrupted? Are you withdraw your EPF money? 
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