The government is looking at amending the Bankruptcy Act 1967 (Act 360) as it is of the opinion that social guarantors should not be burdened with settling debts undertaken by borrowers.
Minister in the Prime Minister’s Department Azalina Othman Said said this was among the matters being looked at following research carried out on Act 360 by the Insolvency Department (MDI).
The department’s research had studied several matters pertaining to guarantors and borrowers, she said, as the government mulls a policy change to improve the Act.
“Other than that, the government is also considering to shorten the clearing period for an individual who has been declared bankrupt.
“Under the current act, those who have been declared bankrupt will only be given a certificate of clearance by the MDI after a period of five years in line with Section 33A,” she said.
Azalina added that a comprehensive memorandum will be made after taking into account the opinion of relevant parties before it is brought to Cabinet.
“After it has been approved, it is expected to be tabled in Parliament in the next sitting,” she said.
“This is the government’s effort towards reducing the burden faced by the rakyat, specifically guarantors,” she added.