What You Should Do Once You Had Been Declared As Bankrupt?

What You Should Do Once You Had Been Declared As Bankrupt

Once a person being declared as bankrupt, all his or her properties shall vest on the Director General of Insolvency (DGI). However there are exception for properties listed under section 48(1)(a)(ii) of the Bankruptcy Act 1967, which includes the tools of trade and the necessary wearing apparel as well as bedding and other like necessaries of the bankrupt, their spouse and children to a value not exceeding RM5,000.00 in the whole. The properties that are vested on the DGI will be sold and the proceeds will be distributed among creditors.

Besides that, a bankrupt may need to attend to Malaysia Department of Insolvency (MDI) branch that handle their case immediately. They are also required to give full cooperation towards MDI by providing information pertaining to their income, assets, liabilities and other financial transactions. Other responsibilities that need to be carried out by a bankrupt are as follows:

1. to furnished to MDI their Statement of Income and Expenses every 6 month;
2.  to attend all creditors meeting;
3.  not making contribution/payments towards bankruptcy estate out of personal income;
4. refrain from obtaining a credit of RM1,000.00 or more from any person without informing the creditor pertaining to their status as a bankrupt;
5. updating the DGI of all changes of name, address, telephone number, income, property and other relevant information immediately;
6.  responding to the DGI's inquiries within a stipulated time; and
7. complying with DGI's, court orders and provisions in the Bankruptcy Act 1967.

Reference:
www.insolvensi.gov.my