What Is The Effect And Consequences Faced By A Bankrupt In Accordance With The Bankruptcy Act and Rulings

Section 38 the Bankruptcy Act – Consequences of refusal of discharge or of a bankrupt
sec 38(1) where a bankrupt has not obtained his discharge –

  • The bankrupt shall be incompetent to maintain any action (other than an action for damages in respect of any injury to his person) without the previous sanction of the official assignee;

 

  • The bankrupt shall once in every six months render to the official assignee an account of all moneys and property which have come to his hands for his own use during the preceding six months, and shall pay and make over to the official assignee so much of the same moneys and property as have not expended in the necessary expenses of maintenance of himself and his family;

 

  • Notwithstanding paragraph (b), the bankrupt shall immediately report to the official assignee the receipt of any moneys, property or proceeds in any form from property the value of which exceeds five hundred ringgit and which moneys, property or proceeds do not form part of his usual income and the bankrupt shall, as soon as may be required by the Official assignee, pay or make over such moneys, property or proceeds to the official assignee;

 

  • The bankrupt shall immediately inform the official assignee if there is any change of his home address;

 

  • The bankrupt shall not leave Malaysia without the previous permission of the Official Assignee or of the court;

 

  • The bankrupt shall not, except with the previous permission of the official assignee or of the court, enter into or carry on any business either alone or in partnership, or become a director of any company or otherwise directly or indirectly take part in the management of any company;

 

  • The bankrupt shall not, except with the previous permission of the Official Assignee or of the court, engage in the management or control of any business carried on by or on behalf of, or be in the employment of, any of the following persons, namely –

(i) his spouse;

(ii) a lineal ancestor or a lineal descendant of his or a spouse of such ancestor or descendants; or

(iii) a sibling of his or a spouse of such sibling.

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