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:

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