How To Get Out Of Bankruptcy?
Under the Bankruptcy Act 1967, there are three (3) ways in which you can get out of bankruptcy. Please note that there is no automatic discharge in Malaysia.
1. Annulment
Annulment is the cancellation of a bankruptcy.
There are three (3) circumstances in which the court may annul the adjudication order:
Under the Bankruptcy Act 1967, there are three (3) ways in which you can get out of bankruptcy. Please note that there is no automatic discharge in Malaysia.
1. Annulment
Annulment is the cancellation of a bankruptcy.
There are three (3) circumstances in which the court may annul the adjudication order:
Where the court is of opinion that the debtor ought not to have been adjudged bankrupt;
Where the court is satisfied that the debts of the bankrupt have been paid in full;
Where it appears to the court that proceedings are pending in Singapore for the distribution of the bankrupt’s estate and effects among his creditors under the bankruptcy or insolvency laws of Singapore and that the distribution ought to take place in that country.
The effect of annulment is to wipe out the bankruptcy as if the debtor has never been made a bankrupt.
2. Discharge by Order of Court
Discharge means freed from bankruptcy.
How do I apply for discharge?
You may apply to the High Court to grant you an Order of Discharge.
The Court will hear the DGI and your creditors before deciding whether to discharge you or not. The Court will consider such facts as your age, earning capacity and your assets before deciding whether to discharge you. In addition, the Court will also consider the amount of payments you have contributed for the benefit of your creditors, whether any bankruptcy or other offences were committed, and generally, whether you have co-operated fully with the DGI in the administration of your estate.
3. Discharge by Director General of Insolvency’s Certificate
The DGI may, in his discretion, discharge a bankrupt after a period of 5 years in bankruptcy. In deciding whether to discharge a bankrupt, the DGI will take into consideration such factors as:
2. Discharge by Order of Court
Discharge means freed from bankruptcy.
How do I apply for discharge?
You may apply to the High Court to grant you an Order of Discharge.
The Court will hear the DGI and your creditors before deciding whether to discharge you or not. The Court will consider such facts as your age, earning capacity and your assets before deciding whether to discharge you. In addition, the Court will also consider the amount of payments you have contributed for the benefit of your creditors, whether any bankruptcy or other offences were committed, and generally, whether you have co-operated fully with the DGI in the administration of your estate.
3. Discharge by Director General of Insolvency’s Certificate
The DGI may, in his discretion, discharge a bankrupt after a period of 5 years in bankruptcy. In deciding whether to discharge a bankrupt, the DGI will take into consideration such factors as:
the cause of bankruptcy;
the period of bankruptcy;
the bankrupt’s assets and payments to his bankruptcy estate for the benefit of his creditors;
the age or the health of the bankrupt;
the bankrupt’s conduct; and
the level of his co-operative given to the DGI in the administration of his affairs.
Therefore, it is advisable for you to give your fullest cooperation with the DGI so that he may exercise his discretion on your favour.
