Unknown Notice of Bankruptcy

I have recently came back from UK after 3 years of pursuing my education there, and have just got a job today. However, when I went to the bank to open an account; I was unable to do so because there is a notice of bankruptcy placed against me.

Scenario: I was assisting my father in running his business in Sabah, and I was his partner but had withdrawn from the company more than 3 years ago before my departure in September '97. Without my knowledge, a loan was drawn in May to purchase a lorry registered under a company, but there was some problem in the repayment. Therefore the vehicle was taken back by the Finance company. However, the finance company filed charges some time during October '97 to get back the areas that fell due.

The question is, since I have withdrawn from a company more than 3 years ago, why am I still liable?  Perhaps the loan will fall under one financial year, but I have no recollection of signing any contract to either be a guarantor or the borrower. Can this be a fraudulant act? Or perhaps the finace company is trying to minimise its lose on bad debt by putting the blame on innocent people?

I would appreciate some one out there would provide some advice, or perhaps guide me to a lawyer specialised in bankruptcy law.Thank you

Before I proceed further.

What was the framework of the company - sole proprietorshio, parnertship or limited compay (sdn. Bhd.) ?

You have withdrawn from the company. Was it actually being done - officially ? Any proof or evidence ? You can check with the company registrar.

Is it correct that you withdrawn in 1994 and the loan was disburse in May 1997 ? When did they actually apply for the loan ?

How do you know that the company file in charges during October 97 ? You have met with the bank officer which file in the Bankruptcy ? Have you told them this incident ? What was their reply ?

If is only a "Bankruptcy Notice", you are not adjudged a bankrupt yet. But is the company still in operation ?

Are you certain that you was being served a Bankruptcy Notice because of the incident ? Could it be because of other reasons - perhaps Credit Card or other loans ?

The company is a partnership with my father.

As for withdrawal, I believe it is official; as I took my father's word for it. However, I will check it myself, if need to. I withdrew from the company in 1997, if I am not mistake it is before May 97 when the loan was disburse.

The loan is a hire purchase loan for a vehicle; a lorry.

I found out from Maybank in KL when I tried to open a savings account. Shocked to hear such a news, the finance company (Asian Commercial Finance, Lahad Datu Branch) was from Sabah. I did not meet with the bank officer who filed charges, but I spoke to them when I found out from Maybank. I told them (Asian Commercial Finance) of this incident, and they said there was a letter of authority from me to empower my father, who is also the partner, to taken action on my behalf. When I requested of a copy of the authorisation letter to be faxed to me, the officer said the can't release a copy and it would have to be authorise by his superior. They said that I am the gurantor of the loan, but I do not remember signing any contract or even the authorisation letter!

As for the company, it has now ceased operation about a year ago. However, I have yet to be clarified by my father when he returns. There are no other reasons or loans except this incident. Under my name, there is only a study loan from Maybank which has no problem and currently is being paid through a normal repayment schedule. I didn't even apply for any credit card before I left Malaysia.

I spoke to a loan officer in Maybank, and he said that there is a possibility of some serious error. If this is true, I am not going to let this finance company to get away! This negligent has caused a serious inconvenience and psychological distress on me. However, he said I should seek a lawyer's advice. What would you suggest? Should I go to Lahad Datu to see it myself, or shall I first appoint a lawyer now to represent me? In terms of location, where should I appoint the lawyer from; Sabah or KL?

I sincerely thank you Jimmy for shedding some light. I hope to hear from you soon.

Hi There,

If this is the case, my opinion would be -

1) MUST Get the copy of the authorisation letter or any relevant document you have signed with ACF. (a) You should write a letter to the Bank Manager regarding this case - stress on the seriousness of this error - you will receive a reply and action faster. Get a reply from them - Black and White. (b) It's better if it's not too troublesome for you to see them personally. You can obtain a photocopy of all documents and see for it yourself agreements you have signed.
2) It would not be advisable to appoint a lawyer before this case is clarified. If you are afraid of getting into any further trouble, when you meet with the bank staff don't agree on anything or sign any document with the bank. A letter from you should be sufice to get a copy of all the documents.
3) If it is proven that you are the guarantor for the loan which you might have forgotten and you've appointed a lawyer, you'll end up paying the lawyer and the outstanding loan. Agree ?
4) If it's kind of fraud case and that you did not make the authorisation, then with all the documents and evidence, you should appoint a lawyer to deal with these case.
5)Finally, was the loan being applied (not disburse) before you left the company ? You could be liable as you are still the partner at that time. A loan sometimes takes up to months before it it disbursed.

Anywhere I still believe you should clarify the case first.

All the best.

Hi

Did Malaysia immigration take away your passport?

migrant