Bankruptcy Action
We provide bankruptcy service by enforcing the Court Judgment against an Individual debtor. The thresholder is RM100,000 owed for the Creditor to bankrupt the individual.
Section 3(1)(e) of the Insolvency Act 1967 states that the debtor owes RM100,000.00 and after his property has been seized, then only an act of bankruptcy can be carried out on him.
The application is to be done via an application the Court for a Bankruptcy Petition.
Effect of bankruptcy
If you are bankrupt, you cannot:
* holding the office of a MP/State Legislative Assembly;
* holding public office;
* holding certain positions in statutory bodies;
* acting as director of a company without approval of DGI or leave from Court;
* practicing in certain professions (lawyer, accountant, liquidator, quantity surveyor etc.);
* carrying on business without the permission of DGI or leave of court;
* working in the business of a relative, spouse, or children without the permission of DGI or leave of court;
* commencing or maintaining any court action without sanction of DGI;
* leaving Malaysia without permission of DGI/court;
* enforcing certain rights
* using his existing credit card for an amount more than RM1,000 without notifying the issuing bank or finance company (offence under Insolvency Act 1967)How to discharge from Bankrupt:
There are 3 ways to be discharge from bankrupt:
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apply to Director General of Insolvency (DGI), but most likely it will be objected by the creditor (such as bank) - section 33A
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apply to DGI, but on condition that you falls under specialized group under section 33B such as OKU, mental health illness, with serious illness disease (cancer), above 70 years old, social guarantor and being a deceased.
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Automatic Discharge - this is a more practical method, however, you need to be consistent in making the payment and to file a statement of affair (Penyata Hal Ehwal Kewangan). You need to state your total income, expenses and any property/assets you hold that can be realised to settle the creditor’s debts.
Kindly contact us if you would like to apply for automatic discharge.
Winding Up Action
We also provide service to wind up a company and the threshold to wind up a company is RM50,000.00 after the lapsed of the service of a notice of demand for 21 days.
Any action of recovery can be used for tax deduction for bad debt. You may consult our lawyer for further advice.
Kindly contact us for issuance of legal letter of demand.
The above article is for general information only and does not constitute legal advice. For advice on your specific circumstances, speak to us.
