:money_with_wings: BANKRUPTCY (:soccer: EIGHT (8) ACT OF BANKCRUPTCY ( A…
:poop::WHAT IS BANKRUPTCY?**
:question: It is governed by the Bankcruptcy : Act 1967
:question:Bankruptcy is a legal recognition of an individual debtor's inability to meet/ pay his debts when they become due.
:check:Winding up (for company)
:zap: A company may be wound up compulsorily ( under an order of the court) or voluntarily.
:check: Factors to initate or consider before initiating bankcruptcy proceeding :
:zap: Value of debt must be more than RM30,000.
:zap: Cost of legal proceeding. To decide whether the Bank can recover the amount due if they know that debtor has assets.
:zap: Moral and ethical consideration.Not encourage during recession.
:ice_cream: To protect the interest of the creditors and publics.
:ice_cream: To free the debtor from his debt so that can proceed again after discharge by the court.
:ice_cream: To secure the property of the debtors among his creditors.
:ice_cream: To investigate the reason for the debtors's insolvency so as to discourage or detect other people from incurring in debts they cannot pay.
:heavy_check_mark: STEP & PROCEDURE IN BANKRUPTCY
The court may dismiss it or make a Receiving Order (RO)
The Official Receiver will conduct a Public Examination or investigation as to the reason for his failure.
File Bankruptcy Petition by all creditors or debtor itself. List down debts by debtors.
:<3: The debt owing by the debtor to the petitioning creditor must be less than RM30,000
:<3: The debt is a liquidated sum payable either immediately or at some certain future time.
:strawberry: A bankcruptcy notice can be presented by the creditor if the following conditions :green_cross:
First Creditor's Meeting will be conducted between creditors, debtor and official receiver.
An Adjustcation Order will be made and the debtor will be adjudicated as bankrupt.
EIGHT (8) ACT OF BANKCRUPTCY
A debtor failed to comply with a bankcruptcy Notice served by creditor.
Declaration by debtor himself or his inability to pay debts. Must filled with Official Assignee.
Departing or remaining outside of his country so as to defraud or delay paying the creditors.
Notice given by debtors of suspension of payment of debts either orally or in writing.
Makes to any two or more of his suspension and offer of composition with his creditors.
He/she makes fraudulent transafer of his property or of any part there to prevent distribution according to bankcrupty laws.
He/she a conveyance or assignment of his property to a trustee for the benefit of his creditors generally.
Fraudulent preference that is transfer of any of the debtor's properties to particular creditor with the intention of paying that creditor in full in preference to other creditor.
DOCTRINE OF RELATION BACK
:star: THE TRANSFER OF DEBTOR'S PROPERTY TOOK PLACE BEFORE THE DATE OF THE RECEIVING ORDER.
:star: THE PERSON DEALING WITH THE BANKRUPT HAD NO NOTICE OF ANY AVAILABLE ACT OF BANKRUPTCY COMMITED BY THE BANKCRUPTCY BEFORE THE TRANSACTION
RESTRICTIONS ON BANKCRUPT
a) Shall not be appointed as Sessions Court Judge
b) cannot be nominated for elections
c) cannot be nominated for the Exercising Office of Councillor of a Local Authority.
d) Cannot maintain any action except with Sanction of Director General Insolvency.
e) Cannot leave the country except with DGI's permission.
CIRCUMSTANCES THAT COURT CANNOT GRANT AN UNCONDITIONAL DISCHARGE TO THE BANKRUPT.
:bulb: The bankrupt has been convicted of any ofference in connection with the bankcruptcy.
:bulb: The bankrupt has little assets compared to his unsecured liabilities.
:bulb: The bankrupt has failed to keep proper records.
:bulb: The bankrupt has continued to do business despite being insolvent.
:bulb: The bankrupt has failed to account for any loss of assets.