1. Can a bankrupt continue using his existing credit card?
A bankrupt can only use his existing credit card up to the amount of RM1000.00. If wish more than RM1000.00, he must notify the issuing bank or finance company as to the status of his bankruptcy. If fails, he will be deemed to have committed an offence under the Bankruptcy Act 1967.
2. Can a bankrupt make an application to DGI to reduce the amount of debt?
NO, he should write in or meet the officer at the particular Bank stating his intention to do so.
3. Can a bankrupt make direct payment to the creditor to settle his debt?
NO, all payment has to be made through the DGI. The payment will be credited into the estate account and distributed to the creditors who have filed in Proof of Debt.
4. Can a bankrupt open a bank account or continue using his existing account?
May open a bank account or continue using his existing account for reasons such as crediting his salary or any profit gained provided he obtains the permission of the DGI.
5. Can a bankrupt transfer his property?
NO his property shall be automatically vested upon the DGI.
6. Can a bankrupt travel overseas?
YES. an application by stating his intention, reasons and duration of travelling.
– Haji/umrah / keagamaan
– Ahli Keluarga yang sakit/meninggal duni
– Lawatan sosial iaitu berkahwin / menghadiri majlis perkahwinan / konvokesyen / menziarahi keluarga / menjaga anak / menemani suami
7. Can I remain as director of a company if I have been made a bankrupt?
NO. a bankrupt is not allowed to:
(a) work in the business of a spouse, children or relative;
(b) enter or carry on any business, either alone or in partnership.
8. Do my creditors have a right to seize my properties after I have been made a bankrupt?
NO your assets vest in the DGI.
9. How can a bankrupt be released from his bankruptcy status?
There are three main ways as to how a bankrupt can have his bankruptcy terminated:
(a) Making an application in court at any time for the bankruptcy order to be annulled on grounds
ie debt has been paid in full or that he ought not to be made a bankrupt on some technical
(b) Making an application in court at any time for a court discharge. This is subject to a stringent
requirement and the Insolvency Department has to put a report emphasizing among others the
conduct and cooperation of the bankrupt with the department.
(c) Making an application to the DGI for a discharge under section 33A of Bankruptcy Act 1967. Such
application can only be made only if 5 years has lapsed from the date order was made upon
satisfying some criteria imposed by the DGI for the exercise of his discretion. Among the factors
that the DGI will take into consideration are the conduct of the bankrupt, the extent of his
cooperation with us, the cause for bankruptcy, old age and infirmities etc.
10. How do I conduct bankruptcy search?
You may conduct an online search at our website www.insolvensi.gov.my under the ‘Services’ link. A fee of RM12.00 will be charged to your credit card. Please note that payment must be done via credit card only. Another method is via counter in our Headquarters Putrajaya. A fee of RM10.00 is payable via cash. You will receive the bankruptcy search result within 15 minutes.
11. Is there a possibility a person can be declared bankrupt without his knowledge?
Yes, -sent to his old address; he does not update his address; does not reach him, doesn’t read newspaper if the document is served by a substituted service procedure, he did not turn up in court, he doesn’t bother to accept or open any legal document sent to him at his address.
12. Is there an automatic discharge for a bankrupt?
There is no automatic discharge of a bankrupt in Malaysia laws, irrespective of age.
Only bankrupt with a good conduct can be considered for a discharge.
Good conduct means:
(a) Good co-operation as and when required by any officer of MdI;
(b) Upon being adjudged a bankrupt, he will attend to the MdI’s office immediately when required to do so;
(c) Have submitted a complete Statement of Affairs within a stipulated time given by MdI;
(d) Regularity in making payments or monthly contribution;
(e) Compliance with the DGI’s and Court order;
(f) Compliance with all the restrictions under section 38 of Bankruptcy Act 1967;
(g) Submitting an Income and Expenditure Statements every six months;
(h) Informing the Department of any changes of address and income;
(i) Did not make any direct payment to the creditors; and
(j) Declaration of dividend
· health problem/prolong illness (supported by medical report);
· too old (70 years old and above); and
· case administration exceed 5 years.
13. What are the disqualifications of a bankrupt?
Upon the adjudication, the bankrupt is disqualified from:
(a) holding the office of a Member of Parliament;
(b) holding public office;
(c) holding certain positions in statutory bodies, registered societies or organizations;
(d) practising in certain professions;
(e) carrying on business alone or in partnership or by way of a company;
(f) working in the business of a relative;
(g) maintaining any action without the sanction of DGI other than an action for damages in respet of an injury to his person;
(h) leaving Malaysia without the previous permission of DGI or court;
(i) receiving pension or other gratuity; and
(j) enforcing his rights under certain legislation.
14. What are the responsibilities of a bankrupt?
Bankrupt’s responsibilities include:
Attending at the DGI’s office as soon as possible upon the making of the Receiving Order and Adjudication Order and other subsequent meetings with the DGI whenever notified;
Handing over all assets to the DGI;
Submitting a completed Statement of Affairs;
Submitting an Income and Expenditure Statements every six (6) months;
Attending all meetings of creditors;
Making contribution / payments towards bankruptcy estate out of personal income;
Refrain from obtaining further credit;
Shall not to obtain a credit of RM1,000.00 or more from any person without informing the creditor his status as a bankrupt;
Not to make payments direct to the creditors;
Informing the DGI immediately of all changes of name, address, telephone number, income, property and other relevant information;
Responding to the DGI’s inquiries within a stipulated time; and
Complying with DGI’s, Court orders and provisions in the Bankruptcy Act 1967
SOURCE FROM : Department of Insolvency (MdI)