Bankruptcy Act Amendments Now In Force

The Bankruptcy (Amendment) Act 2017 comes into force today (6 October 2017) (“Act“). The Act represents an overhaul of Malaysia’s bankruptcy legislation. Key changes to note include, among others:

• The Bankruptcy Act 1967 will now be referred to as the Insolvency Act 1967.
• Debtors can now participate in a voluntary scheme of arrangement to settle their debts, in order to avoid bankruptcy.
• Social guarantors are granted “immunity” from bankrutpcy.
• Other guarantors may still be subject to bankruptcy proceeedings, but permission of the Court is first required.
• Automatic discharge for bankrupts in certain situations.
• Minimum debt to commence bankruptcy proceedings has been raised to RM50,000.00 (previously RM30,000.00)

Read our other articles about the changes to our insolvency regime:

• Changes to Bankruptcy Act – easier to get out of bankruptcy?
• Bankrupty Act amendments to reduce debtors’ burden
• Donovan & Ho in Asian Property Review – Amendments to Bankruptcy Act and Stamp Act
• Parliament Passes Bankruptcy (Amendment) Act 2017

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