New bankruptcy law to have higher threshhold

Minister in the Prime Minister’s Department Takiyuddin Hassan says a higher bankruptcy threshold will help those affected by Covid-19.

KUALA LUMPUR: The government will soon table amendments to Section 51 of the insolvency laws to increase the threshold of an individual to be declared bankrupt, the Dewan Rakyat was told today.

The amendments would be tabled at the current meeting of the house, said de facto law minister Takiyuddin Hassan.

He said the higher threshold would help the people to weather the economic effects of Covid-19 restrictions.

“Yes the government is concerned after Covid-19, and will table amendments to Section 51 that will increase the threshold for an individual to be declared bankrupt. I cannot announce (the details) yet. It will be tabled at this sitting,” he said in reply to Hannah Yeoh (PH-Segambut).

Yeoh had asked the minister if the government would increase the bankruptcy threshold as more people may fail to pay their loans after losing their jobs.

Earlier, Takiyuddin said the government is concerned over bankruptcy cases. To curb the problem the government will continue to create awareness among youths to avoid bankruptcy.

A 6-month-long loan moratorium ending in September would also ensure fewer Malaysians will be declared bankrupt, he said.

In April, the Insolvency Department announced several initiatives to ease the burden of bankrupts during the MCO lockdown period, including deferring monthly repayments for six months.