Significant Changes to the Bankruptcy Act 1967 & Business Opportunities for Professionals

Master Trainer: Wai Chong Khuan

Total Duration of Webinar: 1 hour 24 mins

Training Outline
1. Introduction of Bankruptcy Act 2017
– Came into force on 6.10.2017
– Bankruptcy Act 1967 renamed to Insolvency Act 1967
– Some terminologies changed

2. Key Amendments
• Increase in bankruptcy threshold
 From RM30k to RM50k

• Single bankruptcy order
 From Adjudication Order and Receiving Order to Bankruptcy Order

• Absolute protection for social guarantors
 No bankruptcy action against social guarantors

• Additional protection for other guarantors
 Bankruptcy action can only be filed against other guarantors after all other modes of execution and enforcement to recover the debts have already been exhausted
 Must obtain prior leave from Court

• Service of bankruptcy cause papers
 Before substituted service can be made, creditor must prove that the debtor, with intent to defeat, delay or evade personal service :
(a) departs out of Malaysia or being out of Malaysia remains out of Malaysia; or
(b) departs from his dwelling house or otherwise absents himself, or secludes
himself in his house or closes his place of business.

• Voluntary arrangement
 Before a debtor is adjudged a bankrupt, he may propose a composition with his
 The debtor may apply to Court for a restraining order.

• Automatic discharge after 3 years from submission of statement of affairs
 A debtor must achieve the target contribution determined by DGI and render an account of money and property to DGI

• Establishment of Insolvency Assistance Fund
 To streamline the administration of a bankrupt’s estate in terms of payment of fees and costs

3. Conclusion
– Increased protection for individual debtors
– Lender may review the traditional lender-guarantor arrangment

Master Trainer: Wai Chong Khuan

Wai Chong Khuan graduated from University of Malaya with a Bachelor of Laws (hons) degree in 2008 and was called to the Malaysian Bar in 2009. He was previously a partner of the litigation division in a leading legal firm. In 2017, he joined Messrs. Low and Partners as a litigation partner in the firm.
Having passion for civil litigation, his principal area of practice include banking and insolvency matters, corporate litigation, debt recovery, employment, commercial disputes, probate and administration, land and torts. He is active both in and out of Courts. He is also experienced in conveyancing, corporate and commercial works.
He currently acts as legal adviser in relation to the relocation of a Chinese school and advises on matters related thereto.

Total Duration of Webinar: 1 hour 24 mins

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