PETALING JAYA: The insolvency department is formulating amendments to the Insolvency Act 1967, which includes shortening the period for a person’s bankruptcy status to be lifted.
Law and institutional reform minister Azalina Othman Said said Putrajaya was also looking into other amendments to the Act to improve the administration of bankruptcies.
These suggestions include setting a deadline for creditors to file their proofs of debt to avoid late filing which can hinder a bankrupt from being discharged, and streamlining the threshold for small bankruptcies in view of the new minimum wage and economic situation.
Another proposed amendment involves allowing bankruptcy cases to be managed remotely.
The government is also looking to allow mentally ill bankrupts and those above the age of 70 to be eligible for discharge from bankruptcies without objection from creditors.
Azalina said engagement sessions will be held with stakeholders on Feb 7 to discuss the suggested amendments, adding that Putrajaya will welcome any constructive feedback and proposals.
“The government takes note of the challenges faced by those who are bankrupt and the stigma of bankruptcies within the community,” she added in a statement today.
Last year, then prime minister Ismail Sabri Yaakob said the government will review bankruptcy laws in light of the rise in cases, particularly among youths.
As of March last year, there were 287,411 bankrupts in the country.
