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ANNOUNCEMENT ON THE ENFORCEMENT DATE OF INSOLVENCY ACT 1967

Malaysia Department of Insolvency (MdI) hereby notified that The Insolvency Act 1967 has been enforced on 6th October 2017. With the enforcement of the Act, Bankruptcy Act 1967 is now known as Insolvency Act 1967.

Significant changes in the amendment include —

1. a social guarantor can no longer be made bankrupt;

2. stricter requirement for personal service for bankruptcy notice and petition;

3. introduction of the voluntary arrangement as an alternative to bankruptcy;

4. a higher bankruptcy threshold from RM30,000 to RM50,000;

5. introduction of the automatic discharge of bankruptcy;

6. no objection to four (4) categories of bankrupt for applying a discharge under section 33A (discharge of bankrupt by Certificate of Director General of Insolvency);

7. introduction of single bankruptcy order as a result of the abolishment of the current two-tier order system, i.e. receiving and adjudication orders;

8. Insolvency Assistance fund

Announcement

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