Malaysian Insolvency Department Announces Six-Month Deferment On Bankruptcy Repayments
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Bankrupt individuals will see some reprieve as the Malaysian Insolvency Department (MdI) has announced several initiatives to help them amidst the current financial climate. This includes a six-month deferment of their monthly repayments, starting from 1 April to 30 September 2020.

The deferment is applicable to all bankrupt individuals as well as those who have signed hire purchase agreements with the Insolvency director-general (KPI) or any receiving and settlement officers (PPp).

“For bankrupts who do not wish to take up this initiative, they can apply to continue with their payment at MdI branches which handled their bankruptcy cases,” said the department in a statement. According to MdI, this deferment aid is offered in line with the six-month automatic moratorium that was announced by Bank Negara Malaysia (BNM) on 25 March 2020.

The department further added that bankrupt individuals below the age of 55 who are facing cashflow problems can also withdraw up to RM500 from their Employees Provident Fund (EPF) Akaun 2 for 12 months. This also follows an earlier decision from the government to allow withdrawals from the retirement fund to tide Malaysians through this difficult time. Those who wish to tap into this initiative will have to make their own applications to EPF.

To find out more about the deferment programme, you can contact MdI at 03-88851065, 03-88851928, or 03-88851313. Alternatively, visit the department’s website or Facebook page, or send your enquiries to [email protected].

(Source: Bernama)

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