Voluntary Arrangement Avoids Bankruptcy

1972
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Minister in the Prime Minister’s Department Datuk Seri Azalina Othman Said told the Dewan Rakyat yesterday that a total of 296,712 cases of bankruptcy has been recorded nationwide until August this year.

The breakdown by state:

  • Selangor – 72,114
  • Johor – 50,255
  • Federal Territories – 46,377
  • Penang – 22,136
  • Perak – 19,733
  • Sarawak – 16,499
  • Kedah – 14,343
  • Sabah – 12,553
  • Pahang – 10,415
  • Malacca – 9,316
  • Negri Sembilan – 8,425
  • Kelantan – 8,187
  • Terengganu – 5,322
  • Perlis – 1,037

Azalina said the Insolvency Act 1967 has provided four methods to release a bankrupt person from his current state.

The amendments to the act were just enforced in October, and the Insolvency Department is in the midst of collecting data and disseminating information to those declared bankrupt.

Voluntary arrangement under the Insolvency Act 1967 gives an opportunity for one at risk of being declared a bankrupt, to settle his debt without bankruptcy proceedings.

The voluntary arrangement is a government rescue mechanism to prevent more individuals from being declared bankrupts.

“An individual who is aware of impending court action and may be declared a bankrupt should go to the Insolvency Department to make this voluntary arrangement.

“The voluntary arrangement will give the debtor the opportunity to settle his debt with the creditor based on the scheme agreed by both parties.

“If the debtor fails to follow the scheme, the creditor may proceed with the bankruptcy proceedings,” Azalina said.


Related reports:

Sept 18, 294,000 Malaysians Bankrupt

May 2, Now You Can Check If You Are a Bankrupt Online