The Bankruptcy (Amendment) Act 2017 comes into force today (6 October 2017) (“Act“). 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 our 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
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