LAW and Institutional Reform Minister Datuk Seri Azalina Othman Said announced the enforcement of new amendments to the Insolvency Act 1967 scheduled for tomorrow.
“In line with the objectives of the Second Chance Policy, amendments to Section 33C and Subsection 33B(2A) will be enforced retrospectively for bankruptcy cases administered before the commencement of the amendments.
“The Second Chance Policy aims to release up to 130,000 individuals who have declared bankruptcy, up to a period of one year after the amendments come into force. This amount is half of the total number of cases being administered by the Insolvency Department,” said Azalina in a statement today.
The key change involves Section 33C of the Act, which will now allow automatic discharge of bankruptcy within three to five years from the submission of an individual’s statement of affairs.
Moreover, one’s bankruptcy status can be discharged through the director-general’s certification without the need for creditor objections, specifically if the individual is unable to handle their affairs due to mental illness or if they are 70 years old and above and unable to contribute to bankruptcy administration as per the director-general’s discretion.
Furthermore, these amendments introduce electronic communication for creditor meetings and the submission of bankruptcy administration documents, streamlining the process.
The director-general’s obligation to hold the first meeting with the creditors has been abolished to speed up the administration of bankruptcy procedures.
“The enforcement of the amendments reflects the government’s commitment to ensure that no group of people is left out of the process of national development.
“This also proves the government’s concern for giving a second chance to the bankrupt to continue living well and be able to come back and contribute to the economic development of the country together,” added Azalina.