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|Legal Subjects > Bankruptcy Law|
WHAT IS BANKRUPTCY ?
Bankruptcy is a way to deal with debts that you are unable to settle as and when they fall due. The bankruptcy proceedings free you from excessive debts allowing you to make a fresh start subject to some restrictions and ensure that your assets are shared out to repay creditors.
A person who has been judged by a law-court to be unable to pay his debts as they fall due is a bankrupt.
Anybody can go bankrupt, including members of a partnership.
WHY THE BANKRUPTCY LAW ?
Bankruptcy law provides for the development of a plan that allows a debtor, who is unable to settle his debts and to pay through the division of his assets among his creditors. Under the supervised division, the interests of all creditors will be treated with some measure of equality.
The courts have had to take account of the existence of companies operating within the jurisdiction that have subsequently become insolvent.
Malaysia's bankruptcy law is based on English law.
IF LOTS OF PEOPLE AND BUSINESSES GO INTO BANKRUPTCY, WHY SHOULDN'T I ?
Take bankruptcy seriously. You do not have to become bankrupt because you are in debt.
Bankruptcy involve the closing down of your business, giving up any possessions of value and your interest in your property and the inability to obtain new credit. You will be subject to certain restrictions. Bankruptcy damages your standing in the community.
Get advice from your lawyer, if bankruptcy proceedings are taken against you or you are thinking of making yourself bankrupt.
If being a bankrupt will not be better off then you were before, why do it ?
Consider alternative to bankruptcy that may produce better result than going into it.