The Bankruptcy (Amendment) Bill 2016 was passed in the Dewan Rakyat yesterday (29 March 2017). The law will be effective once it is passed by the Dewan Negara, receives Royal Assent, and is gazetted.
The new law is an overhaul of the existing Bankruptcy Act 1967. Major changes include:
- raising the minimum debt threshold for commencement of bankruptcy proceedings from RM30,000 to RM50,000
- providing for automatic discharge of bankrupts
- granting immunity to social guarantors from bankruptcy proceedings
- replacing the term “bankruptcy” with “insolvency”
The proposed amendments are said to be more “borrower friendly” and are aimed at reducing the number of bankrupts in the country.
Please read our other articles about the proposed changes to Malaysian bankruptcy law:
