You
can either make a formal application the Court any time after being made a
bankrupt but there are certain pre-conditions to be satisfied. These other
alternative is to apply to the Official Assignee for certificate of discharge
but is subjected to certain pre-conditions.
► Are bankrupts subjected to certain restrictions?
Upon
being adjudged a bankrupt, the person disqualified from holding certain
positions in business and may not leave Malaysiabecome Director of company
or directly or indirectly take part in the management of the company without
the previous permission of the Official Assignee or of the Court.
► What should the debtor do upon receiving the bankruptcy petition?
The
debtor should immediately seek legal advice and assistance.
► Can be a bankrupt be subjected to a further bankruptcy proceedings?
A bankrupt may be the subject of a
fresh bankruptcy proceeding in respect of debts incurred by him subsequent to
the making of the order in the first bankruptcy proceedings but the courts may
refuse to make a further receiving order if it is satisfied that there is no
probability of any assets available for administration by the Official
Assignee.
► What is the legal process involved before the debtor is adjudged bankrupt?
Initially,
a debtor is issued a formal demand notice of payment of debt (on which a court
judgment is obtained), issuance of a Bankruptcy Notice and thereafter a
Creditors Petition. Whereby a A.O & R.O is obtaining thereafter.
► What is my obligation to the Official Assignees?
The
Debtor is required a file an affidavit which contains the statement of affairs.
This statement sets out the debtors principal assets and liabilities.
► Q.What should I do after being declared a bankrupt?
After
an Adjudicating Order (A.O) and Receiving Order (R.O) has been obtaining
whereby a debtor is adjudge a bankrupt he has to report himself to the nearest
bankruptcy office (Insolvency Department).
► Must fill debts be settled before the debtor applies to be discharge from bankruptcy?
No,
but there are certain requirements and conditions to be satisfied in respect to
the application for discharge from bankruptcy.
► What are the main objective of the bankruptcy process?
The objective is that since the Debtor is unable to pay all his debt, his assets should be fairly adn equitably shared by his creditors and be relieved from further liabilities.
► How can a person be declared a bankrupt?
A person can be adjudged bankrupt only when he has committed an act of bankruptcy i.e. a ''debt'' of RM30,000 for which a judgment is obtained from the Courts.
