KUALA LUMPUR: The government is considering to make improvements to the Bankruptcy Act 1967 (Act 360).
Minister in the Prime Minister’s Department Datuk Seri Azalina Othman Said said the Insolvency Department (MDI) was looking at matters related to the guarantor and the borrower.
“Among the matters that have been given attention by MDI is the guarantor, particularly the social guarantor to borrowers who fail to pay their loans.
“The government believes that they should not be burdened with settling loans taken by others,” she said in a statement Thursday.
Azalina said the government would also consider reducing the discharge period of individuals who were declared bankrupt.
“Under the present law, those who were declared bankrupt will only be given a certificate of discharge after five years in accordance with Section 33A.”
Some 285,048 people were declared bankrupt up to June 2016. – Bernama