Eight policy changes in amended Bankruptcy Act
Published on: Wednesday, September 20, 2017
Kota Kinabalu: There will be eight key policy changes in the existing Bankruptcy Act 1967 [Act 360] including increasing the threshold minimum for declaring a person bankrupt from RM30,000 to RM50,000 under the Bankruptcy Bill (Amendment) 2016 (RUUK 2016) .According to Malaysian Department of Insolvency (MDI) Kota Kinabalu Branch Director Monica Linsua (pic), the RUUK 2016 briefing highlighted the eight (8) policy changes that have been made on the existing Bankruptcy Act 1967 [Act 360] where information on the changes is provided to government agencies and stakeholders as well as related NGOs. "The briefings held in conjunction with the 60th Anniversary of the National Independence Month will see MDI also having similar briefings at all branches which will take place between August 16 2017 to September 30, 2017."
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The Bankruptcy Act 1967 [Act 360] was amended through RUUK 2016 which was approved by the Dewan Rakyat on March 29 2017 and by the Dewan Negara on April 26, 2017. The RUUK 2016 is now awaiting final approval by Minister in the Prime Minister's Department cum Minister in charge of law Datuk Seri Azalina Othman. It is not retrospective.Briefing on the matter for government agencies, NGO's and stakeholders at a hotel in Kota Kinabalu on Tuesday, she said as noted by Prime Minister of Malaysia, Dato Sri Najib Razak in his blog, the RUUK 2016 is important and close to his heart. The approved RUUK 2016 is also in line with the concept of "People First."She said therefore, the RUUK 2016 will be a solid foundation for maintaining the momentum of MDI as a Department which is committed to providing excellent and excellent presentation and service of power to the people in the country in meeting the challenges of the current economic development and in line with the government's call of "People First, Performance Now '.
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Eight (8) policy changes were made to the existing Act namely:i. With this RUUK 2016, Guarantors cannot be made a bankrupt.
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ii. the notice of petition for bankruptcy is delivered by themselves (bankrupt) where with this amendment, the debtor will have knowledge of the bankruptcy action to be taken on them and will give the debtor the opportunity to enter the rescue mechanism.iii. Rescue Mechanism is where the negotiation will be conducted when the Debtor voluntarily fills an application to the Courts to be given a chance to negotiate to prevent the Bankruptcy Order being recorded. iv. The minimum value of the bankruptcy (threshold) is increased from RM30,000 to RM50,000.v. Automatic Discharges where the bankrupt qualifies for release after three (3) years after meeting the target contribution.vi. Creditors cannot protest if bankrupt is released if a bankrupt has died, is a guarantor, a chronic patient or a disabled person.Stay up-to-date by following Daily Express’s Telegram channel.
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