Kota Kinabalu: Malaysia’s 15 million Employees Provident Fund (EPF) members are not allowed to withdraw their savings to clear bankruptcy cases.
Although there were some efforts by some MPs in the past to try to advocate amending the law to enable creditors to garnishee bankrupts’ EPF savings to repay their debts, such moves were not successful.
Bankruptcy offers protection to individuals from further pursuit from creditors and buys time to sort out one’s finances.
A person can then apply for a discharge of bankruptcy after five years, once the individual can prove to the director-general of insolvency that his or her assets are well administered.
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