Malaysia – Bankruptcy Act Amendments Now In Force.

 

11 October, 2017

 

 

The Bankruptcy (Amendment) Act 2017 comes into force on 6 October 2017. The Act represents an overhaul of Malaysia’s bankruptcy legislation. Key changes to note include, among others:

 

• The Bankruptcy Act 1967 will now be referred to as the Insolvency Act 1967.
• Debtors can now participate in a voluntary scheme of arrangement to settle their debts, in order to avoid bankruptcy.
• Social guarantors are granted “immunity” from bankrutpcy.
• Other guarantors may still be subject to bankruptcy proceeedings, but permission of the Court is first required.
• Automatic discharge for bankrupts in certain situations.
• Minimum debt to commence bankruptcy proceedings has been raised to RM50,000.00 (previously RM30,000.00)

 

Read these other articles about the changes to our insolvency regime:

 

• Changes to Bankruptcy Act – easier to get out of bankruptcy?
• Bankrupty Act amendments to reduce debtors’ burden
• Donovan & Ho in Asian Property Review – Amendments to Bankruptcy Act and Stamp Act
• Parliament Passes Bankruptcy (Amendment) Act 2017

For further information, please contact:

 

Donovan Cheah, Partner, Donovan & Ho

donovan@dnh.com.my