Three Conditions For Bankruptcy Status To Be Lifted Says Azalina


 
PETALING JAYA: Individuals who fulfil three conditions can apply to the Insolvency Department to be lifted from their bankruptcy status, says Datuk Seri Azalina Othman Said.
According to the Minister in the Prime Minister's Department (Law and Institutional Reform), the first condition required that the declaration of bankruptcy had passed the five-year period from the date of the acceptance order and the judgment order or bankruptcy order.
Secondly, the total debt or outstanding debt involved did not exceed RM50,000.
Third, there were no court orders, court proceedings or investigative proceedings conducted on the bankrupt under Act 360.
"Individuals who fulfilled these conditions can go to the department’s branches or email them to check on their bankruptcy cases,” said Azalina in a statement on Monday (Feb 27).
More information can be obtained from the department’s website at www.mdi.gov.my.
Prime Minister Datuk Seri Anwar Ibrahim had announced on Friday (Feb 24) that the bankruptcy status for 120,000 insolvents would be automatically lifted on March 1.
Anwar, who is also the Finance Minister, said the government planned to table amendments to the Insolvency Act to make it easier to lift the bankruptcy status of individuals.
"As of January, there are more than 260,000 bankruptcy cases recorded, the majority involving young Malays who have the potential to contribute to the economy.
"The government will amend the Insolvency Act 1967 so that bankruptcy cases can be automatically released.
"While waiting for the amendments, there are small cases with debts of less than RM50,000. If conditions are fulfilled, these cases will be immediately lifted from bankruptcy on March 1," he said when tabling Budget 2023.
He said that the move would benefit some 130,000 individuals who had been declared bankrupt. - Star


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