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How to release from bankruptcy

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asked on Nov 25, 2014 at 03:32
by   Cammie nv
Dear sir,

I would like to seek for your advice / confirmation that is the automatic discharge for bankruptcy will implement soon? How can I discharge from bankrupt?

I’m an OL who aged 30. I’m one of a guarantor to my ex-company for a bank facility at Yr 2006 / 2007, due to some circumstances my ex-company unable to pay for the loan. The debts were at my shoulder. The total amount charged is RM113k.

I have been adjudged a bankrupt. The hearing & action date is on Yr 2009 and I’ve left the company on the same year. The Insolvency freeze all my bank accounts, I have no choose by accepted and started the monthly payment since 2010.

Appreciate if you could advice me how to discharge myself from bankrupt.
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answered on Nov 25, 2014 at 05:59
by   Jenny
What is an "OL".. Office Lady?

There is no automatic discharge at this point of time. However, if you dutifully pay your monthly instalments to JIM for 5 years, you may try to apply to DGI or to High Court for discharge. It is also subject to any objections from the creditor banks. For the same debt, are there any others who were made bankrupted too.??

Personally I believe that the auto discharge would be based on certain conditions for guarantors. In some countries, if the loans were made by the falsifying of docs to get banks loans, that amounts to "fraud" and can mean a jail term. For guarantors of motor vehicles/housing loans (secured loans) the chances of earlier discharge may be possible in the near future but then when is the cut-off period..??
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answered on Nov 26, 2014 at 02:19
by   Cammie nv
Hi Jenny,
Yes, OL meant to office lady.

Sad to hear that there is no automatic discharge at this point of time. Yes, I did dutifully pay the monthly installment. Would you mind to share / guide me the method on how to apply to DGI or High Court for discharge?

I’m the only ‘lucky’ person was bankrupted for the debt whereby the directors and another guarantor are not. The facility that getting is for business trade due to insufficient funds for few big projects entered at same period not falsifying of documents to get bank loans.

Would you mind to elaborate more what you mean by  cut-off period?
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answered on Nov 26, 2014 at 03:18
by   Jenny
@Cammy

I have not been thru these stages. Your OA will be the best person to guide you.

Assuming our PM annouce in Jan2015 that there is an automatic discharge for certain categories of bankrupts say, in 3 years with certain condititions attached/fulfilled, say, for reporting to JIM and having paid monthly intstalemnt for the whole period, there may still something vague on whether it is for new bankrupts wef 2015 or for bankrupts 10,15,20 years ago. According to one unverified report, there are more 600,000 bankrupts, imagine the number of cases going to court just applications for dischage.....

In life, there are a lot of "bad luck". Just regard it as a "bad karma" from previous life and you will be freed forever from the afterlife effects. Just take it as a redistribution of assets and liabilities and the burden in our hearts would be freed easier.

You can apply by 2015, do go to release "pigeons/doves" on Wesak Day next year even if you are not a Buddhist. It is good for our karma in this life. Good Luck...
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answered on Nov 26, 2014 at 04:27
by   Cammie nv
Hi Jenny,

Thanks for your responsive and informative reply.

Let’s keep finger crossed… hopefully our PM will make the announcement earlier next year and the best bonus for my life. And I will go to release pigeons/doves on Wesak Day next year.

I would like to check with you, is this bankruptcy status will ‘follow’ me for the rest of my life even I’ve discharge? What is the impact to my future?

Do I really need to settle all the debts? When I can be discharge if the amount made for the monthly installment is only +/-5% (per annum) of the debts?
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answered on Nov 26, 2014 at 05:42
by   Jenny
Hi Cammie,

Read on " Confused " posting. He was a discharged bankrupt.

..  http://www.lawyerment.com.my/boards/article-Malaysia_Business_Consumer_Bankruptcy_Law-2864.htm

..  http://www.lawyerment.com.my/boards/article-Malaysia_Business_Consumer_Bankruptcy_Law-2881.htm

You are a guarantor in this case. If no other types of debts before, there should be no records in CCRIS. But with CTOS, there is a record. There are so many laduks/politicians/businessmen/women who went bankrupted, yet discharged, made bankrupted again, then discharged again and now still alive and kicking around and still in business today.

JIM is to help people to restructure their life and come clean. Your credit rating in the future is the key to your future undertakings. Except for the bank who "bankrupt" you, there should be no big issue from other banks if your credit worthiness is positive. By paying to JIM now is a plus sign...

The full debt is not the big issue, DGI can recommend discharge for adhering to its guidelines and it is up to the bank whether to discharge the debt since you are only a "Guarantor".
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answered on Nov 27, 2014 at 02:02
by   Cammie nv
Hi Jenny,

Thank you so much for your valuable and informative response.

I will get the OA to advice on the discharge next year and will take note on the news/announcement from PM.

Thank you so much with gratitude.
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answered on Nov 27, 2014 at 02:20
by   jeff005
@ Cammie

RM 113K Bankruptcy amount. What was the court awarded interest rate? Is it 18% p.a. or less.? If you are pay +/-5% per annum, the total amount would be just get larger and larger. Even if you pay till 99years old, still the debt cannot settled.

Q.1 Why did you agreed to pay that amount when it cannot be settled in your lifetime unless you increase the monthly payments.

Q.2 why report in to JIM in the very first instance?

Q.3 At this very point of time, do you think that it is useless of JIM not being able to help you?

Hope to hear your reply.. Thks
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answered on Nov 27, 2014 at 04:15
by   Cammie nv
Dear Bladirunner,

Refer to your questions, please find my replies as below:-

RM 113K Bankruptcy amount. What was the court awarded interest rate? Is it 18% p.a. or less.?
[I’ve no idea that the interest rate that the court awarded. To be frankly, I never attend any court, 99% of the documentations are not with me, all with my ex-company. I trusted them will resolve this matter. When I 1st receive the letter from the lawyer, I was told by my ex-boss (one of the guarantor also for the debts) to just ignore. Nothing will happen to me. I listened, followed and trusted, when I’m in my young age. Never encounter this kind of situation, no one I can seek for advice. End up, I trapped in this trouble]
If you are pay +/-5% per annum, the total amount would be just get larger and larger. Even if you pay till 99 years old, still the debt cannot settled.
[I’m away on this, that’s why I’m seeking for advice on how to discharge myself from this situation.]

Q.1 Why did you agreed to pay that amount when it cannot be settled in your lifetime unless you increase the monthly payments.

Q.2 why report in to JIM in the very first instance?

[Ans to Q1 & Q2 - Again, I listened and trusted my ex-boss, the way was told is simple. Just go to the Insolvency office, then will have officer helps out. That time is because all my bank accounts were freeze and I’m still don’t know what happened until one of the bank office told to call Insolvency to find out more.
At that point of time, in order for me to have a bank account on my monthly salary transactions, I have to go JIM. And I didn't know that, that day is actually to take this burden under me. I was thinking to declare that I've leave the company and no longer the staff of my ex-company, during my 1st visit one of the director was accompanied me to JIM ]

Q.3 At this very point of time, do you think that it is useless of JIM not being able to help you?
[ I didn't know that actually JIM suppose to help me. There is no one explain to me etc even during my 1st visit to the JIM. I only remembered that the officer gave me a lot of documents to sign and they also give an instruction letter to the bank that I wish to open account for the monthly installment]

I’m really wanted to get discharge, with my age I’m still not even can own a car & house. What gonna happen to my old age.

I’m sincerely look for your valuable advice.
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answered on Nov 27, 2014 at 06:35
by   jeff005
Dont worry and sleep better now. PM may announce any positive decisions before next elections. I hope you can be discharged even before the anmesty is tabled. Let me try to get another info from a frenz before i reply you. YOU DO NOT HAVE A BLEAK FUTURE.
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answered on Nov 28, 2014 at 00:04
by   PreviousConfused
@cammie nv
Sorry need to change my nickname as there are a couple of runners with the same nickname "confused".
Jenny just shared my previous posting with you. And I m that "confused" person who shared that posting.
For your info, there is no automatic discharge. I was discharged after 20 years.
Mine was a very old case. I still need to go through the process to pay up before I get my discharge despite that both of the banks is now owned by another banks.
Just like many of us here, we didn't have the proper guidance or knowledge to handle it at earlier stage.
When I was served the summon back in the 90s, I turned to a lawyer friend for help. He assigned a chambering lawyer to accompany me to see the officer at JIM. In actual fact, I wanted to submit an appeal. But with a chambering lawyer who is not very knowledgeable ( sorry for stating that point ) and an officer who doesn't utter a word except passed me lots of forms to fill up. Didn't know who else to turn to then and ended up bearing the many years of damage.
Anyway, damage was done and after the many years, I went to JIM again.
Fortunately for me, the officer at JIM who took over my file is friendly and guided me through the process.
I did my own affidavit. Paid both the banks off. Got them to acknowledge the settlement of the payment.
Then went to commissioner of oath to get the documents chopped and signed. Got the court hearing for annulment fixed but on the day of hearing, the officer went on emergency leave. Thus, I waited for another 1 1/5 months to attend the annulment. Finally, I got it done. Then took the document back to JIM officer and a week later back to JIM to obtain my letter of release.
Even after 5 years, one may not necessary get the release. From my experience, we need to settle the amount stated then only can we get our release. We still need to go to court etc., But it is a short 10 mins proving with all the documents that the debt been settled and no objection from creditors.
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