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|Legal Subjects > Bankruptcy Law
HOW AM I MADE A BANKRUPT ?
In bankruptcy proceedings, your total judgment debt must be more than RM50,000. Bankruptcy notice will be issued and served on you. If you did not response within the time limit for full settlement or negotiation of settlement proposal, you have committed an act of bankruptcy.
The court will makes a Receiving and Adjudication order after the bankruptcy petition has been presented. There are two types of Bankruptcy petition - Debtor's petition where you present the petition and Creditors' petition which will be presented by your creditors.
Even if you refuse to acknowledge or agree to the order, a Receiving and Adjudication order can still be made. Thus you are advise to cooperate fully once bankruptcy proceedings have begun.
If you dispute the creditors' claims, make sure you try and reach a settlement before the Receiving and Adjudication Order. The Receiving and Adjudication Order is made if not contested on the bankruptcy petition hearing.
You are being declared a bankrupt once the Receiving and Adjudication Order is made.
AS A BANKRUPT, WHAT ARE MY DUTIES ?
When the Receiving and Adjudication Order has been made you must go to the offices of the Official Assignee or Jabatan Pemegang Harta and provide information relating to your financial affairs and hand over your assets to the them including all your books, bank statements relating to your property and financial affairs.
You must stop using your bank and similar account immediately. You also must not obtain any credit either alone or with other people.
It is an offence for you to conduct any business be it directly or indirectly in a different name from that in which you were made bankrupt.
The court will take a small percentage of your monthly income within your means to pay to the Official Assignee. If you have extra money in your account, the Official Assignee can also claim the amounts which is more than you need for your normal living expenses to pay your creditors.