In our previous article, we discussed the initiatives
implemented by the Government to ease the process of discharge of
bankrupts. This included the conditions and procedures for
discharging bankrupts with small-scale debts, as well as proposed
amendments to the Insolvency Act 1967aimed at enhancing the
provisions for discharge of bankrupt and the administration of a
bankrupt's estate.
The recent enactment of the Insolvency (Amendment) Act 2023 has
now come into effect, implementing the proposed amendments.
Below, we summarize the key amendments to Malaysian insolvency
law.
Additional categories of bankrupt individuals eligible for
discharge
Prior to the amendment, the discharge of a bankrupt under
section 33A was at the discretion of the Director General of
Insolvency (DGI), with a minimum waiting period of
five years from the bankruptcy order and subject to section 33B,
which allowed creditors to object to the discharge. However, the
recent amendment
