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Debt Recovery Companies Winding Up Legal Firm

Debt Recovery

The Secrets About Debt Recovery & Collection In Kuala Lumpur Malaysia

If  you want to  get your money back quick, read on.

The first half is recovery against a Company and the other part is when your debtor is NOT a Company.



File a companies winding up petition WITHOUT getting a judgment (going the long process of trial).

Winding Up Without a Judgment Petition Malaysia

Filing a Companies Winding Up Petition against your debtors (who are a company, in Malaysia they are BERHAD, BHD, or a Private Limited Company, SENDIRIAN BERHAD, Sdn Bhd),  is the fastest method of recovery.

What is the Alternative

The alternative will be a filing of a Writ of Summons to get a judgment then file a winding up petition AFTER getting a judgment.



From our experience it takes about 6 months from the time we issue a letter of demand till the recovery of the debts.



In this debt recovery game the sooner you start your recovery process the sooner you will be paid. The reason is simple, we have experienced a matter where there are about 60 creditors taking legal actions at the same time, only less than 5 received payment.


Get a FREE NO OBLIGATION Quotation for your matter...



Once we have filed a companies winding up petition against the debtors, we will usually proceed to take legal action to freeze the assets of the company, all these will take place within two months of filing the action in court, once that is achieved, when the winding up order is finally made, the monies in their bank accounts and the assets are intact for the Liquidator to collect and distribute to the creditors.







In Malaysia, once a matter is filed in Court, generally it takes about a year for the matter to be concluded.  For the various procedures in the Malaysian Court, click here.  After the hearing, the Court may grant you a Judgment,
after getting a judgment, you need to execute the judgment.

To understand how to recover your debts you must understand the entire procedure in order to effectively collect your outstanding debts from the beginning till the time your debt is collected.



After you have gone through the lengthy process of completing the entire proceedings (at times including a trial) and then getting a judgment against your debtors, it does not automatically means that the debtors will automatically pay the debts automatically.

You will have to commence execution proceedings such as a companies winding up petition (after judgment), Bankruptcy Petition or a Writ of Seizure and Sale.

There is faster way of obtaining a judgment rather than going for a trial, the process is called summary judgment and we have written an article please click on the article below.

Fastest Way to Get a Judgment in Debt Recovery Summary Judgment


Send in the SEAL Team To Extract Your Lost Funds

Frequently Asked Question: How can an unsecured creditor recover their debts?

The perception on this is that only bankers and secured creditors may recover their debts.  This is generally true.

Can unsecured Creditors get paid ahead of the Bankers?

The short answer is YES, click here to read more.  See the Reviews from our clients




How Do I Submit My Debt Recovery Query

Please click here for the guideline or  checklist  OR  If you would like to submit a Debt Recovery Query Form directly to us.



WHO MOVED MY MONEY? Your debtors…

In one the following cases you will find that in FW V Suitech the Provisional Liquidator was appointed in November 2007 and the Company was wound up in January 2008 (see also Pay up or Wind Up) the whole process took about 3 months:

These are the brand new cases published in 2008 (reported Back to Back):

FW Industries v Suitech (the Original grounds written by the learned Judge Hishamudin, who was later elevated to the Court of Appeal and retired in the year 2015, Get a FREE NO OBLIGATION Quotation for your matter...
published in the Current Law Journal: [2008] 3 CLJ 210

PECD V FREEHOLD (the original grounds written by the learned Judge, now Judge of the Court of Appeal Dato Vincent Ng, published  in the Current Law Journal:
[2008] 3 CLJ 215

Visit Current Law Journal to download a copy of the actual report.  See the Reviews from our clients

Inquire About This Service


66 Responses to Debt Recovery Collection Best Legal Procedures In Malaysia

  • My friend’s (one of the director) in a company that has been wound up by the creditor, he asked me to settle the company’s using cheque under my name and he will pay me cash, will I incur any liability by doing this?

    • Dear Sir/ Madam
      Thank you for submitting your question.

      If you have received the CASH before issuing the cheque, the risk is very low so long as you state clearly that you are only making a payment on behalf of the debtor.

      The “best” way is to ask him to go to the bank and buy a banker’s cheque and need not get your involved.

      Please also seek advice from your own solicitors as we did not receive your information in full.

      Thanks again.
      Best Regards

      Alex Chang
      Alex CHANG & Co
      Cell/ Whatsapp/ Viber +60122273289
      HK: +852-8170-3389


  • Recently, I received a letter of demand. Can I ignore it because what the letter say is not true.

  • Dear Mr.Alex,

    I am Leong and I intent to recover about xxxk from my ex-sales as she has cheated the company
    from her sales based on invoice issue by the company.

    Is there any way to recover this debt and what is the procedure.

    Thank you

  • Someone personally owed me rm10k. I only have the prove of bank in slip to his bank account. Is there any legal action I can take towards?

  • Hi Alex,

    We have a deal with a client in Australia and have received approx 50% of goods. They have signed our terms of order but it seems really difficult to collect the balance from them despite being nice.

    The amount pending for now for goods already shipped amounts to RM300k +. We still hold the balance goods they ordered and they amount to around RM200k and they have told us to ceased production.

    Any advise on what we can do as this client is a foreign one. Thank you.

  • Hi a friend owes me RMxxxxx. Only have whatsapp conversation as evidence.
    Possible to take legal action to recover? If yes, pls send quotation.

  • Hi Alex,

    I have a problem recovering the capital (RM 150,000) invested in a Project since Sept 2014.

    This was done through a business acquaintance, who offered us a 100% gain within 6 months, while giving her personal guarantee on the capital investment, if anything went wrong. The actual Project was to be executed via her contact i.e. a 3rd party unknown to us. The terms and conversations with our acquaintance are recorded in WhatsApp messages only.

    Payments via cheques were made to the bank account of the acquaintance and there are records of this. Note that the acquaintance has been involved in various investment schemes.

    Over the last 3 years, we were informed of the delayed/failed Project and numerous attempts/excuses about trying to secure funds to make good on the investment/capital return.

    We have made 2 personal demands via letter to the acquaintance for a return of the capital in Oct/Nov 2017, since she had personally guaranteed the capital. She has disregarded the demands and maintains that the 3rd party is trying to source for funds to repay us.

    Would appreciate some advice on the process and costs involved in recovering the money, if possible.

    Thank you.

  • Dear Alex,

    A renovation company like to collect balance fee after completed the roject from me. But the quality and final delivered date is not acceptable. They insist to collect and no discussion. They engage lawyer and legal debt collector to approach me.
    1. Can I go to consumer tribunal or small claim court for this dispute while not paying them?
    2. Do I need to pay the fee incur by thier lawyer and debt collector?

    • Dear Reader
      Thank you for submitting your question.

      1. Can I go to consumer tribunal: probably…
      small claim court is only for matters below RM5,000.00

      2. Do I need to pay the fee incur by their lawyer and debt collector?
      If the creditor sues you, you will have to bear part of the legal fees,
      debt collector’s fees we have no comments.

      You may need legal representation to assist you in this.
      We will be happy to recommend a legal firm to handle this matter.
      Please whatsapp us at the number below.
      We will not be able to give names of solicitors we recommend in a public forum like this.

      Thanks again.
      Best Regards

      Alex Chang
      Alex CHANG & Co
      Cell/ Whatsapp/ Viber +60122273289
      HK: +852-8170-3389

  • Hi Alex,

    My partner and I running a private limited company. There are 3 private limited companies, 2 of them under the same management and all companies operated by the same CEO. The pending payments are start from tax invoices in May 2017 without any reason. The agreed credit term is 30 days and normally payment will be received after 90 days. We are thinking suppose to receive payments in August but it is not. We start to check with finance department in September about the payments. The person in charge keep telling us payment not yet ready and unable to confirm the date to pay. In November 2017, we sent out notice and statement to request payment proceed and on hold delivery of outstanding order through email to finance department, purchasing, operation manager, and head of production. There is nobody reply us. When we call to person in charge of finance department, they informed that they understand the on hold delivery due to pending payment and payment not yet ready. Kindly advise us the best way to secure payments from debtor and recover the debt as soon as possible.

    Thanks in advance.

  • A sole trader without a fixed address except the fish farm(joint venture business) and very hard to find him in person. Contact him by mobile phone or whatsapp. He is owing me more than RM10,000 now and the agreement is still going on. He promised to pay this & that day but always never pay except on three occasions. The agreement is still in force for another two years, by which time he would owe me about RM30,000. I suspect he has closed this sole trader company and set up another Sdn Bhd because he used this company’s cheque to pay but the cheque was returned. May I know what action can be taken; how long & how much will be the charges?

  • Hi Sir, my husband’s customer (sole proprietor) has been owing him for near to RM80k and it was not settled for the past 4 years. Every now and then, we are asking him to settle the debt, but he is dragging and dragging it with excuses, and we can’t do much. Can you advise how to proceed? Should we proceed with issuing legal letter to him?

  • Dear Alex

    I have Done a business agreement with A Sdn Bhd company.

    once the supplier couldn’t fulfill his promises by delivering the goods of RM 1xxk, i requested a full refund but he kept delaying and avoiding till I pressured him to write me a cheque.

    However, he told me he doesn’t have balance and i should wait till he inform me when to deposit it.

    What shall i do?

  • Hi Alex,

    I recently realized the company (sole proprietary type) that owned me money has been closed (since June 2017). Although there is a separate payment arrangement (via installment) between us but it worried me because the company is no longer operating.

    Should I take legal action against the person? is it still possible? Any advice?

    The is about debt is (RMxxx k) and since about half year ago.


  • Hi, I am a Singaporean who rented my condo in K.L. to a tenant – a provider of Home Stay outfit, apparently a sole proprietorship business in Malaysia. Unfortunately the tenant stopped paying the monthly rental for about a year citing poor business cashflow and promising to pay the following week/month with all kinds of excuses like new partner injecting funds etc … This went on for about a year before I terminated the Tenancy last Sept16 and got my real estate agent in KL to get tenant to hand over possession of the apartment. I negotiated with the Tenant to partially offset the total outstanding rental against the Net Residual Value of the existing furniture/appliances in the apartment taken over from Tenant. The net amount owing was then RM13,650 which he signed off on a written Agreement promising to pay this amount by end Oct16. But up till now he still has not paid up even after numerous phone calls and emails to him and the real estate agent who acted as the “go-between”. Since late last year, he totally avoided my phone calls and I only got feedback from my real estate agent who is quite familiar with Tenant as the Tenant had many other tenancies of apartment units in this Condo through this agent.

    I did checked on tenant before initiating the tenancy in Jan2014 . He provided the business registration documents which showed the Home Stay Biz registration was in another person’s name which the agent informed me was Tenant’s wife’s.

    What’s the best cost effective and efficient action that I can take ? or your firm will be able to help ? Thanks.

  • Hi a friend owes me RM xxxxxx. Only have whatsapp conversation as evidence.

    Possible to take legal action to recover? If yes, pls send quotation.

  • I recently lent money to a friend from another country, it’s more than RM5,000. Is a way to get back my money? I tried being nice but it didn’t work.

  • Advanced a sum of money i.e RMxx k to a friend via his company (I suspect it’s a RM2 company). This was documented in an agreement and stamped accordingly. The repayment has been overdue for a year – what is the best way to recover my advances?

  • Hi,
    I’m in a bit of a pickle. I can’t find anything that clearly defines our situation in employment law so I think we have to go the debt recover route. An ex employee was legally dismissed in May but continued to receive 2 months salary (over xxxx k) after dismissal due to lack of communication to our payroll provider. We have tried to contact the ex employee to make arrangements to return the funds on several occasions but they have ignored our requests.
    Can we issue legal action against the ex employee? If so what course can we take?
    Thanks in advance.

  • Dear Mr Alex Chang
    I am exporter of Agri Commodity in India.I have export cumin Seed in Malaysia. Total Value of Payment is around US$35,000/- but this company did not send the payment in last week.
    They have given TT copy but the TT copy is not aunthicated so it cannot be cashed.
    so i am what type of Legal action taken for This help for recovery of payment and next week i am going to malaysia.

    Company Information :
    Axxxxxxxxx Trading SDN BHD
    Peatling Jaya Selangor, Malaysia.
    Mr azan- +6014 xxxxxxxx (senior manager)
    Mr danny- +6014 xxxxxxxx (import manager)
    Mr Bharat -+6011 xxxxxxxx (Boss)

    so please suggest what type of legal action can be taken for this company and how much will be the charges for debt recovery.

  • My husband is a third party agent for Company A.

    In 2013, a logistic company B engaged his services to ship some products.

    In March 2014, there was a dispute whereby Company A claimed one of the batches was spoiled (after being stored in the warehouse for several months) due to my husband’s negligence — he did not use a cold truck to ship from airport to warehouse.

    Therefore, Company A refused to pay the subsequent bills that had incurred after that particular batch of shipment.

    My husband is now unable to pay Company B and is being sued for bankruptcy.

    Is he able to recover the debt from Company A?

    • Dear Tracy
      There are two separate questions here:
      1. His transport charges for Company A, that we feel that he is able to collect;

      2. His debts owing to Company B, that would depend on whether B is able to prove the negligence of your Husband. There will be many issues to be considered such as whether the services of a ‘cold truck’ (or a reefer) was engaged and when was the ‘defects’ discovered.

      From what you said it seems that the ‘discovery’ was after a considerable amount of time which may present some difficulties for Company B, you must seek the advice of your lawyers to defend your matter otherwise your Husband may be made a bankrupt and recovery from Company A may be a challenge.

      Hope it helps.

      Usually we do not disclose details of the clients’ matter online.

      Feel free to use: Live chat Whatsapp/ Viber +6012-2273289 if you have further queries.

      Best Regards

      Please visit this page for some reviews of our services by our clients:

      For some information and a short forum on Bankruptcy please click the link below:

  • Hi, Alex, I can see that your advice for debts of less than RM5,000 is to file with Small Claims Court. But what if the creditor (me) lives in another country and the debtor is in KL? I get to KL occasionally, so I suppose I could do a filing, but I’d also have to appear personally in court, correct?

    This system sounds similar to that of the US (small claims court w/o a lawyer)… but problems arise when the the parties are in different states far apart. The usual solution, I think, is to turn the debt over to a collection agency in the debtors state: the collection agency then takes 1/3 of the debt. Is that how it works in Malaysia?

    Then there’s another alternative. My lawyer father used to send warning letters on behalf of clients that were owed money; sometimes that was sufficient to scare the debtor into paying. Sometimes not.

    BTW, there is no dispute that this man/company owes me the sum for work I did. I can show you several emails in which he promises to pay me “this Friday” or “next Friday.” This has gone on for 6 months.

  • This website is really cool. I have bookmarked it.

  • You’ve made some really good points there.

    I checked on the net for additional information about the issue and found most people will go along with your views on this website.

  • We were given cheques to cover the debt that a customer owes us. Lately he asked not to bank in as his company is winding up. But he has yet to sell his property to pay bank bank loan and the balance to clear the other creditors.

    What can we do to recover the debt?

  • Hello There. I discovered your blog using msn.

    That is a very neatly written article. I’ll make sure to bookmark it
    and return to learn extra of your useful information. Thanks for the post.
    I’ll definitely come back.

  • Dear Alex,

    Would you be able to advice or point me to some salient resources on debt recovery and statute of limitation effect?

  • Dear Mr Alex Chang

    we have few clients have taken my company’s GPS products for their business purposes for more than a year. However they have not paid us nor did they affix their signatures or company stamps on our tax invoices, I hope that can hear any advice from you on this issue.

    • Dear Miss Grace Lee
      Do your company issue delivery orders, if you have we can assist you by filing an action in court to recover the outstanding debts.

      please feel free to contact us.

  • Say A has a banking facility from the Bank. The Bank will issue a monthly statement notifying A as to the amount that need to be repaid every month with interest. Now, A has defaulted on the loan. Will the Bank continue to issue the monthly statement?

    • Dear Mr Yap
      It all depends on the internal policy of each bank.
      From one of my banks the response was:
      “Usually we will still issue statement on yearly basis, to notify the clients how much is the accrued interest.”

  • I am unable to recover the money back to a person who defrauded me by telling that he will provide us a maid for house work.
    The sum involved is RM4,500/- Can you please advise me how to proceed.

    • Dear Mr Paul

      Our suggestion for you is to proceed with your matter in the small claims court. If you need further assistance we will be happy to render.

  • We are a company work under S********. However, we are not dealing directly with the company as we are only one of the sub-contractors of the principal/ owner of the project. S******** claimed that they have made the payment to the company (principal) but the principal owed us up to RM 100,000 (around 3 months payment) and now we are still unable to recover the outstanding debts/ sum. What actions can we take? Thank You.

    • Dear Mr Ung

      Thank you for your mail.

      We will normally advise you to take legal action immediately while the debtor is still in operation.
      Pls call us to make an appointment so that we can tell you in greater details.

    • It’s a relief to find sooemne who can explain things so well

      • Thank you so much. We are trying our best to share some information that we have acquired over the years.


  • Someone borrowed some money from me a few months ago with a promise to repay within a month. However, it has been several months now and the debt remains unpaid.

    I have been in touch with the borrower for a while and she kept coming up with excuses. My latest message to her remains unanswered.

    I now only have her name and account number. I had transferred the sum to her through internet banking. I believe that is proof that I have given her the money.

    Is there a way I can sue her for the return of the money? If so, what are the steps I should take? The sum is RM1,600.

    Yeoh Guan Jin

    • For debts below RM5,000 the best way is to take an action personally without the lawyers in the “Small Claims Court”, you may do so without a lawyer. If you need further information, please send us an email and we will be happy to provide.

      Best regards

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