KUALA LUMPUR, July 4 (Bernama) - Minister in the Prime Minister's Department Nancy Shukri said the Bankruptcy Act 1967 is being amended to allow individuals declared bankrupt get release, the Dewan Rakyat heard today.
Several alternative provisions would be introduced so that creditors could get back debt based on the insolvency legal framework such as 'individual voluntary arrangement' and 'debt repayment scheme.'
"The draft act has been brought to the attention of the Attorney-General's Chamber. Among the provision proposed is automatic release after the case is administered over a certain period (timebased)," she said when replying to a question from Teresa Kok (DAP-Seputeh).
Based on records by the Insolvency Department, some 246,357 individuals were declared bankrupt automatically and blacklisted by the Immigration Department.
Sub section 38 (1) (c) Bankruptcy Act 1967 prohibits individuals declared bankrupt from leaving the country except with permission of the director-general of Insolvency Department.
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Nancy said under the present act, bankrupts could leave the status in three ways namely via court order, release certificate from the director-general and invalidation via court order.
"For release, a bankrupt may file an application in court after receiving judgement. A date will be set for the hearing and decision.
"Release via certificate is at the discretion of the director-general. However, the case must be administered after five years in addition to other criteria. It is also subject to rebuttal from the creditors."
For invalidation via court order, the application may be made when the claim has been paid fully or when the facts showed that the bankrupts should not have been given acceptance order and judgement order.
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