3 categories of bankrupts can apply for early discharge

3 categories of bankrupts can apply for early discharge

The insolvency department will implement the bankruptcy discharges from March 1, says law and institutional reform minister Azalina Othman Said.

Staff of the insolvency department attending to enquiries at a public counter in Shah Alam last week. (MDI pic)
PETALING JAYA:
Three categories of bankrupts can now apply to the insolvency department to have their bankruptcy status lifted, said law and institutional reform minister Azalina Othman Said.

In a statement, she said the department will consider bankrupts with total debts of less than RM50,000.

The department will also consider cases where the declaration of bankruptcy had passed the five-year period from the date of the adjudication and receiving orders.

The third category is for bankrupts who have no court orders, court proceedings or investigative proceedings being conducted against them under the Insolvency Act.

“Those who fulfil these conditions can apply at the department’s branches or by email to check on their cases,” she said.

The changes to help people to be released from bankruptcy were announced by Prime Minister Anwar Ibrahim when tabling the 2023 budget on Friday. He said those with debts under RM50,000 could be released from March 1 subject to conditions.

He said some 130,000 people would benefit.

Anwar said more than 260,000 people had been declared bankrupt, most of whom were young Malays with the potential to contribute to the economy.

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