Monday, July 9, 2007

Bankruptcy proceedings

Taking bankruptcy proceedings against the judgment debtor is one of the various means or ways to enforce or execute the judgment so that the debt can be recovered. Banks sometimes resort to taking such proceedings against the judgment debtor as a last resort and after considering various factor such as :
(i) the value of the debt must be at least RM10,000; and
(ii) the cost of legal proceedings has to be weighed up against the availability of assets for distribution;

Where there are other creditors who are likely or in the process of initiating bankruptcy proceedings, the bank may not need to initiate the proceedings but instead it can later on simply prove for its debts.

However, bankruptcy proceedings may be useful if the debtor has made a number of fraudulent conveyances to defeat his or her creditors. The Official Assignee may be able to re-claim these properties under the doctrine of ‘relation back’.

2 comments:

Anonymous said...

Keep up the good work.

student loan bankruptcy said...

Thanks for the information..We are in the middle of a chapter 7 bankruptcy n are 5 months behind on the house payments. The house place wants a relief from the stay or all of the money from where we are behind in. Can we go to a chapter 13 bankruptcy now in order to save the house n can we do it on only the mortgage company?