Malaysia - Bankruptcy Act Amendments Now In Force.

Legal News & Analysis - Asia Pacific - Malaysia - Insolvency & Restructuring

Asia Pacific Legal Updates

 

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:

 

For further information, please contact:

 

Donovan Cheah, Partner, Donovan & Ho

donovan@dnh.com.my