Home / Malaysia Bankruptcy Law / Business & Consumer Bankruptcy Law After Discharged by Court After Discharged by Court

After Discharged by Court (modified 0 times) Retiree I was a bankrupt since 1982 and LHDN was one of my creditors list. I applied and got discharged by Order of Court at year 2001. I am at retirement age but I do helping on my relative’s business since year 2006 to fill in my spare time and get pay for my cost of living. Recently, I received a letter form LHDN informing that they will proceed with Law Seksyen 104 ACP 1967 if I do not clear the outstanding debt. The debt still carries on though I had discharged and amount of payments had been contributed for the benefit of my creditors? Please advise what should I do now. 26 Aug, 2010 18:54:28

RE:After Discharged by Court (modified 0 times) vkpc Meet LHDN and inform them of your bankruptcy by showing them the bankruptcy documents. 26 Aug, 2010 19:17:42

RE: After Discharged by Court (modified 0 times) Retiree Thanks for your reply, vkpc. Before meeting them, i wonder the debts will resume though I had discharged? What if they insist me to pay the balance? Do i need to pay? Their letter informing that i will be prohibited from going overseas if I do not clear the balance. 26 Aug, 2010 21:08:51

RE: After Discharged by Court (modified 0 times) Retiree Can anyone please help me on this matter? 27 Aug, 2010 19:43:28

RE:After Discharged by Court (modified 0 times) lostboy Based on the law, they can't charge you again on the same debt which they owe you in 1982, you can challenge that in court. 30 Aug, 2010 09:36:54

RE:After Discharged by Court (modified 0 times) vkpc LHDN can't claim the old tax owing before you were declared bankrupt. But for new taxes, you still have to pay. Meet them and get a new corrected statement. 30 Aug, 2010 10:52:12

RE:After Discharged by Court (modified 0 times) Retiree I had met LHDN this morning. They insisted that I have to pay the old tax amounts. According to them, the debt is recovered automatically once I had discharged from bankruptcy. They have their says and resist listening as they are right. They keep saying that they have the legal provision (unit undang-undang) and no such law that the old tax amount would be cancelled after discharged. They want me to prepare copy of related documents included those payments that contributed earlier. I'm really speechless and helpless when they threaten us by their legal provision. How truth and correct are them? While i'm just an old guy and know nothing about law. 21 Sep, 2010 13:29:02

RE:After Discharged by Court (modified 0 times) vkpc It doesn't make sense. For example, let's say you owe 10 million in taxes to LHDN. So you declare bankrupt. After you got discharged, LHDN make you bankrupt again because you still can't pay the 10 million owed last time? This means it will go round and round (bankrupt-discharge-bankrupt-discharge) nonstop. Does it make sense? So stupid. The purpose of becoming a bankrupt and being discharged is to get a fresh start. Not going round and round. Call up LHDN again and ask for the specific Law (Act) and Section number they are referring to. I will check it out for you. If LHDN sue you for old taxes, your perfect defence would be "declared bankrupt on DD/MM/YYYY". 21 Sep, 2010 17:23:28

RE:After Discharged by Court (modified 0 times) lostboy Agreed with vkpc. Ask for specific section of Akta Cukai Pendapatan or Rules. Better still ask them to bring to whole matter to court if they still insist. Who know if they discharge you with cost you could make some money also.. 21 Sep, 2010 21:37:54

RE: After Discharged by Court (modified 0 times) Peter Law It depends on what kind of taxes. Cetain taxes are still payable upon bankruptcy. In US laws, certain taxes are payable for the bankrupt. Best to check with relevant law. 22 Sep, 2010 09:28:30

RE:After Discharged by Court (modified 0 times) Retiree I had went to JIM this morning for the same matter today. I am glad that i met JIM who is much more helpful than anyone else at LHDN. I really wish to ask for the specific Law Act or Section Number that the LHDN refering to. But I do not think they will helpful enough to tell us. According to the JIM, there is 2 kind of debts that we must clear fully. They are LHDN and KWSP. They do have right to sue us into bankrupt again though we had discharged. JIM advised that it is better to discuss with LHDN for an instalment schedule. I wonder if there is law saying LHDN debts must clear fully, then JIM should had assigned the amount of my payment to LHDN first before other creditors. But LHDN told me that they will never get priority in getting payment. Now is like never ending, round and round, bankrupt-discharge-bankrupt-discharge......... 23 Sep, 2010 00:37:26

Debts Not Written Off By Bankruptcy (modified 0 times) UK Resident BELOW INFO IS APPLICABLE TO THE BANKRUPTCY LAW IN UNITED KINGDOM(UK). It differs from country to country. This gives us an understanding that NOT all debts are discharged when a person is bankrupted. Read below to understand the law in UK! Which Types Of Debts Are Dischargeable Within Bankruptcy ? Debt Advice for UK residents explaining which types of debt are normally written off in a bankruptcy or IVA, and which type of debts must normally be paid back. Debts Not Written Off By Bankruptcy Bankruptcy does not clear all debts in all circumstances. You may still be liable for some debts, even after discharge from bankruptcy. This includes debts incurred during bankruptcy. Secured Debts The debt is enforceable only if it remains secured on that asset. If the asset was sold to provide funds towards the bankruptcy, but did not cover the amount owed, then that debt is no longer secured and therefore not enforceable. Benefit and Tax Credit overpayments. Where overpayments are made before the bankruptcy order, but a decision is made to recover them after the bankruptcy order, then the debt remains after bankruptcy discharge. In the case where the overpayment is made and recovery sort before the bankruptcy order then debt is included in the bankruptcy. The exception to this is overpayment due to fraud, in which case recovery can by enforced despite bankruptcy, whenever the overpayments were made. Council Tax You are liable for council tax for the remainder of the current year if not served with a liability order or final demand. Child Maintenance Liabilities from an order made in a family or domestic court, such CSA claims for child support. Student Loans Most educational loans cannot be discharged as they fall outside of the Insolvency Act 1986. Court Fines Court Fines imposed for an offence and Liabilities from a confiscation order made under S.1 of the Drug Trafficking Act 1986 0r S.71 of the Criminal Justice Act 1988 Personal Injury Claims. Debts from personal injury claims made against you. Fraud Debts arising from your fraudulent conduct are outside of bankruptcy. Any credit obtained just before bankruptcy Last-minute credit obtained with little intention of respecting the credit agreement can be excluded and/or result in a Bankruptcy Restriction Order. Interest You may be liable for an interest payable on any of the above debts. 23 Sep, 2010 21:05:46

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