Bankruptcy is a legal proceeding that takes place when an individual is unable to pay off the debt judged by a court of law pursuant to Bankruptcy Act 1967.
A person may be made a bankrupt in the event where
- A creditor may commence bankruptcy proceedings against an individual by serving a bankruptcy notice. (Minimum debts of RM30,000)
- An individual may voluntarily seek a Court Order to be made a bankrupt. (No minimum of debt required)
Effect of Bankruptcy
- Ban from travelling overseas. However, it may be granted under special circumstances (medical)
- A person will be disqualified to act as a Director of a company and cannot engage in the management of any business or trade run by spouse, children or relatives.
- Banking account can only be opened with the approval of the Official Assignee for crediting the monthly income.
- The Insolvency Department will administer all assets. A bankrupt person is required to submit an account of income and expenditure every six months, and report all monies or properties exceeding RM500 that comes into possession.
- The court may order that wages or income be paid to Director General of Insolvency (DGI).
- Credit card can only be used up to a value to RM1,000
ACG understands the pains endured by a bankrupt person. We believe everyone should be treated equally with a second chance. Hence, we have a former bankers and lawyers who will assist the bankrupt person to ease his difficulties and to obtain discharge from the court. We also assist in
- Facility Letter to enable temporarily travel to overseas
- Withdrawal of Employees Provident Fund (EPF
- Negotiation with creditors for full and final settlement
- Discharge Order