Bankruptcy

After an act of bankruptcy, a creditor may present a bankruptcy petition to the court. The Insolvency Act 1967 sets the conditions. The debt must be a liquidated sum, payable immediately or at a certain future date, and it must meet the statutory minimum. The act of bankruptcy must have occurred within the statutory period before the petition.

At the hearing, the court requires proof of the debt, the act of bankruptcy, and service of the petition if the debtor is absent. The court may dismiss the petition if it is satisfied that the debtor is able to pay the debts, or that for another sufficient cause no order ought to be made. A debtor who is properly advised can raise legal and technical objections at each stage of the proceedings.

Who can be made a bankrupt in Malaysia

An individual who:

• Was personally present in Malaysia, or
• Ordinarily resided or had a place of residence in Malaysia, or
• Was carrying on business in Malaysia, personally or by an agent, or
• Was a member of a firm or partnership carrying on business in Malaysia.