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|Legal Subjects > Litigation > Civil Matters > Bankruptcy Proceedings|
WHEN SHOULD I INSTITUTE BANKRUPTCY PROCEEDINGS AGAINST A JUDGMENT DEBTOR ?
In monetary claims, judgment debtor is the person against whom the judgment or order is made or given. It is generally called the losing party.
Depending on the judgment debtor's assets situation, you may wish to consider if it is worth your time and money to commence a bankruptcy action.
In any bankruptcy proceedings, the total judgment debt must be more than RM30,000.00.
Where the judgment debtor has not complied with the judgment or order made, you may commence bankruptcy proceedings against the judgment debtor to recover the same.
You should be aware that your judgment debtor could be in debt to several other individuals or companies.
Once a debtor has been adjudged a bankrupt, other creditors will file in the Proof of Debt form and Proxy to be entitled to share in any distribution from the estate of the bankrupt.
However, the distribution of the estate is according to the priority of the creditors' claim.
You can determine whether your claim is secured by the debtor's assets. If you are a secured creditor, you will have a lien giving you specific rights to the property which is collateral for your claim. A secured creditor has the best chance of getting their share in the distribution of the bankrupt's estate.
Most unsecured claims such as personal loans, come low in priority scheme and may receive little or nothing.
HOW DO I START THE BANKRUPTCY PROCEEDINGS ?
Before you institute bankruptcy proceedings against a judgment debtor, you should conduct a bankruptcy search with the Official Assignee Office or Jabatan Pemegang Harta to determine the status of your judgment debtor.
A copy of the form can be obtained from the Official Assignee Office and the fee to conduct a bankruptcy search on an individual is RM$5.00.
Where your judgment debtor has been declared a bankrupt, you as a judgment creditor, need only to file in the Proof of Debt General Form and Proxy with the Assignee Office. It costs you extremely less if being compared to starting a bankruptcy proceeding.
Where your judgment debtor has not been adjudged a bankrupt, you may institute bankruptcy proceedings against him or her.
You start the bankruptcy proceedings by filing a Bankruptcy Notice in the Court.