Voluntary arrangement avoids bankruptcy

KUALA LUMPUR: Voluntary arrangement under the Insolvency Act 1967 gives an opportunity for one at risk of being declared a bankrupt, to settle his debt without bankruptcy proceedings, the Dewan Rakyat was told today.
Minister in the Prime Minister's Department Datuk Seri Azalina Othman Said said the voluntary arrangement is a government rescue mechanism to prevent more individuals from being declared bankrupts.
"An individual who is aware of impending court action and may be declared a bankrupt, should go to the Insolvency Department to make this voluntary arrangement.
"The voluntary arrangement will give the debtor the opportunity to settle his debt with the creditor based on the scheme agreed by both parties.
"If the debtor fails to follow the scheme, the creditor may proceed with the bankruptcy proceedings," she said in reply to a supplementary question by Datuk Seri Abdul Azeez Abdul Rahim (BN-Baling).
Azalina said the Insolvency Department will hold a roundtable discussion with bank associations and stakeholders to finds ways to reduce bankruptcy and help those facing serious debt problems.
As of August, some 296,712 bankruptcy cases were recorded nationwide, with Selangor the highest with 72,114 cases while Perlis the lowest with 1,037 cases, she said in reply to the original question by Sim Tong Him (Independent-Kota Malacca). — Bernama