Azalina: Insolvency Act amendments to be enforced tomorrow

 

The new amendments to the Insolvency Act 1967 aimed at giving those who are bankrupt a “second chance” will be enforced tomorrow, said Minister in Prime Minister’s Department (Law and Institutional Reform) Azalina Othman Said.

“In line with the objectives of the Second Chance Policy, amendments to Section 33C and Subsection 33B(2A) will be enforced retrospectively for bankruptcy cases administered before the commencement of the amendments.

“The Second Chance Policy aims to release up to 130,000 individuals who have declared bankruptcy, up to a period of one year after the amendments come into force.

“This amount is half of the total number of cases being administered by the Insolvency Department,” Azalina said in a statement today.

The main amendment coming into force is related to the improvement of bankruptcy relief provisions, she added.

Azalina pointed to Section 33C of the Act which has been amended to help automatically discharge bankruptcy within a period of three to five years from the date the individual submits their statement of affairs.

The amendments also state that one’s bankruptcy status can be discharged through the department’s director-general’s certification without going through the creditor’s objection procedure.

However, this is only if they are unable to handle their affairs due to mental illness or if they are 70 years old and above, who according to the director-general’s discretion, is unable to contribute to the bankruptcy administration.

Other improvements

Bankruptcy governance will also be improved with these amendments by using electronic communication for the handling of creditor meetings and the submission of notices and bankruptcy administration documents.

In addition to that, the director-general’s obligation to hold the first meeting with the creditors has been abolished to speed up the administration of bankruptcy procedures.

“The enforcement of the amendments reflects the government’s commitment to ensure that no group of people is left out of the process of national development.

“This also proves the government’s concern in giving a second chance to the bankrupt to continue living well and be able to come back and contribute to the economic development of the country together,” Azalina said. - Mkini