Two New Groups Qualify for Bankruptcy Discharge After Amendment to Insolvency Act

The amendment to the Insolvency Act 1967 will allow two more categories of bankrupt individuals to qualify for discharge through the director-general of insolvency's certificate of discharge without going through debtors' objections, Minister in Prime Minister's Department Azalina Othman said, Malaysia Now reported. The amendment involves Article 8, Subsection 33B (2A) with the inclusion of the two categories, individuals who cannot manage themselves due to mental illness confirmed by a government hospital psychiatric expert and individuals aged 70 and above based on the opinion and consideration of the director general, as Paragraphs (e) and (f). "The amendment is in line with the government's intention to preserve the welfare of bankrupts. They no longer have the means to cooperate and contribute to the bankruptcy administration. The factor of public interest also needs to be considered as bankruptcy involves public funds that need to be optimised," she said when tabling the Insolvency (Amendment) Bill 2023 at the Dewan Rakyat yesterday. She added that Article 15 of the bill has a provision on the use of Paragraph 33B(2A) (e) and (f) for bankruptcy cases managed before the amendment is effective retrospectively. Therefore, after the amendment is passed, 19,913 bankrupts aged 70 and above qualify to be considered for discharge through the director general's certificate if they fulfill the set conditions, Azalina said. Read more.