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Bankruptcy: Can't withdraw EPF age 55?

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asked on Sep 19, 2008 at 22:39
by   Miss Lau
edited on Dec 28, 2016 at 06:18
 
My father aged 54 now and facing bankruptcy soon. Since a bankrupt person can't have bank account, surely he will not able to draw his EPF after age 55. Can he put my name as beneficiary? Hoping that when he has passed away, I still manage to take over his fund in the future and take care of my mum. Will the bank or Bank Negara (BNM) seize his EPF contribution?

Really need some one advice...
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answered on Sep 30, 2008 at 22:59
by   Kalimantan
edited Dec 28, 2016 at 07:13
 
@Jeffery,

Thank you very much for all your contributions to this forum.

I am attending court this month as the bank has sued me for debt owing to them. The debt is RM20,000. What are the judgement possibilities that could happen to me? For example like what if I can and what if I cannot afford to pay? What is the best way to answer the judge?

In fact, I have to attend a few courts on different dates because of debts owing to different banks. What must I bring along to the court besides the summon letter from the prosecuting lawyer?
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answered on Oct 1, 2008 at 15:37
by   marry
edited Dec 28, 2016 at 07:14
 
@Kalimantan,

First of all I want to ask you some questions.

The bank has sued you due to owing the debts is RM20,000. Is it total amount from one bank or from different bank?

Because I also have debts from many bank.. but the total not much... Could you inform me the total is from one bank or total from other different bank?
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answered on Oct 15, 2008 at 18:05
by   Kalimantan
edited Dec 28, 2016 at 07:19
 
@Marry,

The debt RM20,000 is from one bank.
Note: Normally banks do not joint sue to bankrupt a person by jointly totaling the debts to RM30,000 due to complication of the recovery of debts.

If you are owing a bank much less than RM30,000, the bank cannot sue you bankruptcy
except obtaining a judgement from the court. Meaning to say, for a person to be sued
bankruptcy or declare bankruptcy, minimum amount is RM30,000 in Malaysia.

After the judgement is obtained, what type of judgement to be executed later would depend on the court's decision like possessing/seizing of properties or if it is a company, maybe a WSS (Writ of Seizure & Sales) is invoked.
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answered on Oct 17, 2008 at 17:03
by   Kalimantan
edited Dec 28, 2016 at 07:21
 
@Miss Lau,

Confirmed - EPF & pensions are NOT affected when a person is a bankrupt. The money belongs to the EPF retiree at age 55 and the pensioners.

Understand a bankrupt may not have a bank account. Never mind about it. Just give an authorized letter to EPF to deposit the money into another bank account belongings to your spouse or children. That is all.

Actually, by permission from Jabatan Insolvensi Malaysia, (JIM) a bankrupt still can open a bank account but not safe to deposit the EPF money into the bankrupt's bank account because if you are not careful, the bank may freeze the money if there is a court order. To be safe, use the method I recommended above. I got this advice from
a senior lawyer.
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answered on Sep 16, 2009 at 04:17
by   Vince
From the statement above, understand that bankruptcy person can withdraw in cash with bankruptcy declaration letter.

If on suing for bankrupt and now is blacklisted, can give authorize letter and transfer to his spouse bank account?
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answered on Apr 19, 2010 at 19:58
by   Margaret
edited Dec 28, 2016 at 07:22
 
@Jeffery,

My dad now is going to take his EPF. But he has few debts for credit card which he is worrying would this cause him cant take the fully amount of EPF?

In the past 5 years, the licence of his newspaper agency was not renewed. He did not pay the money for his income tax too. But now, when he is going to take the EPF, the accountant that he has hired before told him should close up your licence first so that she can arrange for him. Will it cost expensive for the income tax?

Nearly 7 months he haven't make the house payment yet.This house is belongs to my dad and mom. If the house being Lelong, will this affect his EPF ?

Kindly give some advise. Thanks
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answered on May 15, 2011 at 18:50
by   dievrukawa
edited Dec 28, 2016 at 07:24
 
@Margaret,

The debt will not effect your father EPF amount decrease. It's just that later when your father bank in the money to his account that time, make sure the account is not the account that same bank with his debt bank.

Same goes to the 'lelong', it is still won't effect your father EPF money. This is why, when you apply housing loan that time, you're allowed to take only account 2 rather than account 1. It is because account 1 money is the money for you to use when you pension.
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answered on Oct 29, 2011 at 16:02
by   Ms Vv
edited Dec 28, 2016 at 07:25
 
My husband is also a bankruptcy since 2005 due to default of car loan and credit card.  I got this confirmation via MyEG insolvency check, they send me a paper like certificate but the cert didn't state how much is the debt. 

If my husband would to withdraw his EPF, can this cert be use?  Or he still have to get the confirmation from insolvency dept?

It has being a difficult time for my husband since he bankrupt and he couldn't even find a stable work due to this bankruptcy status and the pressure.  He has being thru a depression.  So he didn't go to insolvency or have any official assignee as he can't even support himself.  He never made any payment to creditor/official assignee before. 

Thank god, since last year, he managed to get a taxi license and started to get a minimum income (around RM100 to RM150 per day gross) which can barely support himself.  And he also has to pay a taxi rental of RM55 per day.  Life seems getting slightly better but problem comes again.

Here is the problem, my mom in law just passed away and leaving a will to my husband(she didn't know he is bankrupt and we didn't know she got a will, it was told by relative after her death).  My mom in law is a single mother, all her sibling already passed away, and my husband is her only son. 

She left around RM90k to 100k in FD & saving account in few banks and no property.  My understanding is if my husband would to execute this will, the money will be use to pay to the creditor 1st(correct me if i am wrong).  But the debt is nearly RM200k, this mean he will get nothing yet the money has to goes to the creditor.  If this is the case, my husband will rather leave the will "unexecute" and give to me or our children after he pass away. 

If the will is left unexecuted, what will happen if my husband pass away?  are we(the next of kin) have to apply letter of administration from court?

I was told by friend i can try to open a join name account with my husband in a bank(the bank must not be the creditor's bank), then get my mom in law's will execute and bank in the money to our join name account, then take out the money and put into my personal account.  Can bankruptcy still open bank account?  Is this risky or the bank will eventually find out and freeze the money even they are not the creditor's bank?

We are really bother by this issue and often have argument.  Hoping that anyone of you can give us some advise how to go about this and sort it out.  Appreciate it!!
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answered on Oct 30, 2011 at 23:53
by   Leroy
Hi Ms Vv,

If this is the case, my husband will rather leave the will "unexecute" and give to me or our children after he pass away. Looks like this is your best option.

Regarding the letter of administration issue, to get an accurate answer, you should consult a lawyer, if your income is low enough, you could qualify for the RM2 legal advice from Jabatan Bantuan Guaman, google them to find a branch near you. Just walk in, no appointment required. If they are willing to see you, the wait is usually about 30 minutes or less.

Hope the above helps.
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answered on Nov 3, 2011 at 21:05
by   Dun Worry
edited Dec 28, 2016 at 07:27
 
Please be informed that you are not allowed to open an account under your children's name or any beneficiary -- EPF will not allowed you to give any letter of authorization to issue the cheque under your children 's name etc.  Either get a letter from Insolvency dept -- then submit your application to EPF, EPF will then issue you a cash warrant (arahan pembayaran) from there, you can cash the money out at RHB branch, (just get your children or trusted person either yr wife or husband) to open a RHB bank account, when you cash out the money straight way deposit the money into the trusted account!!  Very simple, l have done that and enjoying my money now.

See, don't worry being declared as a bankrupt -- no one can take you money away.
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