bankruptcy discharge free debt

Bankruptcy Annulment, Automatic Discharge and the standing of a Social guarantor

Bankruptcy Query

Social Guarantor Cannot be Made a Bankrupt In New Amendment

Versi Bahasa Malaysia

Social Guarantor can no longer be made a bankrupt under the new Bankruptcy (now Insolvency) Act.  The bill was passed in March 2017 by the Malaysian Parliament but the implementation date of the Act has not been fixed.

“social guarantor” means a person who provides, not for the purpose of making profit, the following guarantees:

(a) a guarantee for a loan, scholarship or grant for educational or research purposes;

(b) a guarantee for a hire-purchase transaction of a vehicle for personal or non-business use; and

(c) a guarantee for a housing loan transaction solely for personal dwelling;

Automatic Discharge In the New Insolvency Act 2016

The Insolvency Act which is the new name of the Bankruptcy Act 1967, introduced a new section,  where a bankrupt shall be discharged from bankruptcy after three years from the date of the submission of his statement of affairs;
subject to the condition that the bankrupt has achieved the target contribution determined by the Director General of Insolvency, objection by creditors and the bankrupt’s compliance with the requirement to render an account of moneys and property.

3 main ways  bankruptcy is terminated:

(a) Making an application in court at any time for the bankruptcy order to be annulled on grounds that debt has been paid in full or that he ought not to be made a bankrupt on some technical grounds;

(b) Making an application in court at any time for a court discharge.

(c) A discharge at the discretion of the Director General of Insolvency.


Documents Required for Discharge of Bankruptcy:

  1. Statement of Claim, Judgment; These documents are required to find out who has made the debtor a bankrupt and under what circumstances;
  2. Bankruptcy Orders: Receiving Order and Adjudicating Order (Perintah Penerimaan dan Perintah Penghukuman), this is the “Bankruptcy Order”;
  3. List of creditors, if any, this list will determine how many creditors are there to be paid;
  4. Age; health condition (medical report if you have any);
  5. History of payment(s) to Official Assignee (Pegawai Pemegang Harta);

Costs for Discharge of Bankruptcy

A bankrupt may apply for the order made against him be discharged or annulled.

Whether it is discharged or annulled will depend on the circumstances. In most case you need to find out who are the creditors who have filed the proof of debts against the Bankrupt. A negotiation with the Creditors may be necessary.

Approximate Fees

Costs for the settlement with the creditors will depend on the number of creditors and amount involved.

Getting a discharge will be dependent on how much work is needed to be done.

From March 1, 2021, we will revise the fees for the first hour oral consultation from RM1,550 to RM1,750.00 (including 6% it will be RM1,855.00)

A quick resolution to my Bankruptcy Annulment

A Happy Bankruptcy Discharge Story

Interview Form

When you visit the Director of Insolvency’s office, you may  undergo an interview and please click here to download a sample of  the form for interview provided by the Official Assignee.   Please note here that this is a sample by one of the offices and It may vary from office to office, and time to time. This is 2019 form.

Provide Us More Information

If you would like to find out about getting a Discharge as a Bankrupt please fill up this form

Please let us have the details of your matter



Share this page: