29. How can a bankrupt be released from his bankruptcy status?

There are 4 methods for a bankrupt to be discharged from his bankruptcy which are:

(a) Annulment Order under section 105 of Insolvency Act 1967;

This application is filed by the bankrupt once all debt owed debt has been paid in full by the bankrupt through DGI to all creditors that has proven their debt in bankruptcy together with the fees and cost of case administration. The court will annul a bankruptcy order once the court is satisfied that the bankrupt’s debt are paid in full.

(b) Discharge by Court Order under section 33(3) of Insolvency Act 1967;

This application is filed by the bankrupt anytime to the court at any time after a bankruptcy order has been made. The Court will scrutinize the report by DGI on the conduct of the bankrupt during the administration of the bankruptcy period. The Court will also decide whether to grant absolute discharge, conditional discharge or to reject such application for discharge.

(c) Discharge by DGI under section 33A of Bankruptcy Act 1967; and

A bankrupt may apply for discharge by DGI only if 5 years has lapsed from the date of bankruptcy order was made and upon satisfying some criterias imposed by the DGI for the exercise of his discretion. Among other factors that the DGI will take into consideration are the reason of the application, percentage of dividends that can be paid, the cooperation and the conduct of the bankrupt throughout the administration of the case and the interest of the creditors.

However, the DG may discharge four (4) categories of bankrupys without any objection from the creditors under section 33A to be read together with subsecion 33B(2A) of Act 360. The four (4) categories are-
(a) a bankrupt who was adjudged bankrupt by reason of him being a social guarantor;
(b) a bankrupt who was registered as a person with disability under the Persons with Disabilities Act 2008 [Act 685];
(c) a deceased bankrupt; and
(d) a bankrupt suffering from a serious illness certified by Government Medical Officer.


(d) Automatic Discharge under section 33C of Bankruptcy Act 1967.

This new provision has been enforced on 6.10.2017 whereby a bankrupt may apply for an automatic discharge on the expiration of three years from the date of submission of the Statement of Affairs with certain conditions imposed.