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Order for sale & Bankruptcy (modified 0 times) Richard _Teh Profile | Email My friend borrowed a loan from Bank with his house charged as security. He defaulted the repayment and Bank is pursuing for an Order for Sales, but at the same time he was informed Bank also initiate Bankruptcy proceeding. Can Bank do that? Anyone please assist? 20 Jan, 2009 13:36:00

RE:Order for sale & Bankruptcy (modified 0 times) Richard_Teh Isn'r it pose a "double" punishment? After his property is auctioned, now he may loose all his right if adjudicated a bankrupt....... please help... his total outstanding is around RM54k... 20 Jan, 2009 14:09:22

RE:Order for sale & Bankruptcy (modified 0 times) Anon Bank cannot pursue Bankruptcy without first obtaining Civil Judgnent against your friend. Have they done so and served this to your friend? Bank would normally pursue Bankruptcy if they find that the Auction monies from the Order for Sale does not cover the amount that yor friend owes. 06 Apr, 2009 11:36:07

RE:Order for sale & Bankruptcy (modified 0 times) ex-banker if your bank already get the sivil judgement and if they proceed with the Receiving order for the bankruptcy, it is better for you since no more interest will be accumulated in the account if the bank cannot auctions the property within 6 months from the date of the Receiving order. (please make sure that the bank auctions the property with proper market price ) Get Insolvency department to involve if you already a bankrupt meanwhile check all your statement of account for improper debited of expenses in order to challenge them later. Please read section 8 & 8(2A) of the bankruptcy act. 20 Feb, 2010 11:17:00

RE:Order for sale & Bankruptcy (modified 0 times) notalawyer He should have contested the bank's lawsuit earlier. Now he has to apply for a Stay of Execution of the judgment the bank obtained earlier pending the sale of the house. Tell the judge that if the house is sold at a high price, the bank will owe your fren money. There is always a possibility that the house can be sold at a high price. So, it would be draconian ( amat kejam ) to make your fren bankrupt at this stage while we still don't know who will owe who after the auction. 28 Feb, 2010 20:04:48

RE:Order for sale & Bankruptcy (modified 0 times) ex-banker If the bank already obtained the civil judgment and proceeding with the bankruptcy while your property have yet to be auction, you might challenge the bankruptcy notice if you can show that the property value is more than outstanding balance they have no right to make you an bankrupt person. If your property is under land office, the land office must conduct and inquiry before granting the order for sale, if you have been made a bankrupt then you must informed the Pentadbir Tanah and file your case with the insolvency department, this is to avoid of bank taking advantage of charging you with unnecessary charges and auction the property under the market value ( which normally done by unscrupulous officer of the bank together with the auctioneers by valuing the property below the MV) Get lawyers or try to sell the property by your own, this way you still can salvage something out of nothing if you leave it to the bank and their agent's. another thing is that, you might take a look at the account and try to reconcile it properly get help some bankers friend which familiar with housing loan account. you will be surprise of certain transactions which can lead you to challenge the whole procedures. 15 May, 2010 10:13:09

RE:Order for sale & Bankruptcy (modified 0 times) Boring He defaulted the repayment and Bank is pursuing for an Order for Sales, but at the same time he was informed Bank also initiate Bankruptcy proceeding. Yes...it is the bank standard legal action. The bank will initiate both procedure to Non Performing Loan Customer. However the bank will not go further if the auction or any 1st recovery, cover all debts. 13 Jul, 2010 04:50:53

RE:Order for sale & Bankruptcy (modified 0 times) Redhat How can the bank pursue with BN proceedings unless it knows the amount of the sum the bank wants to demand in the BN? The bank will only know the amount that it needs to recover from the Debtor upon auctioning the property..so if the property has not been auctioned then how is bn possible? Correct me if i am wrong. 25 Jul, 2010 13:44:16

RE:Order for sale & Bankruptcy (modified 0 times) ex-banker On the issue of BN, normally what the bank do is that outstanding balance of the loan less the estimate market value of the property will normally demanded from the debtor through civil / bankruptcy actions. sometime through eagerness of the bank and it lawyer's the fail to deduct the estimate value especially in the Creditor Petition instead they filed the full amount of outstanding. If that is the case you may challenge the BN and the CP and you might win the case and stop the proceeding. please get advise from lawyers also. 16 Dec, 2010 17:08:26

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