Insolvency Act amendments under debate

AMENDMENTS to the Insolvency Act 1967 will include two new categories for individuals to be discharged from bankruptcy, says Datuk Seri Azalina Othman Said.

During the second reading of the Bill at the Dewan Rakyat yesterday, the de facto Law Minister said the two categories are for those over 70 years old, and individuals with mental illness certified by government psychiatrists.

“The two categories can be discharged from bankruptcy through the issuance of a certificate from the Insolvency director-general, without creditors’ objections.

“The categories will include bankrupts who are unable to manage themselves due to mental illness that has been verified by a psychiatrist at a government hospital, and those who are over 70, who according to the judgment of the Insolvency director-general, no longer has the ability to cooperate and contribute to the administration of bankruptcy,” she said.

Azalina said based on a report by the Insolvency Department, 19,913 bankrupts aged 70 and above are eligible to be considered for relief through certification from the Insolvency director-general if they meet conditions.Other recommendations include using information technology in the administration of bankruptcy, and improving the automatic mechanism for the discharge of one’s bankrupt status.

The Dewan Rakyat will resume the debate session of the amendments today, Deputy Speaker Alice Lau said.