KUALA LUMPUR: Social guarantors will no longer be declared bankrupt if borrowers fail to repay their debts. However, this does not absolve the social guarantors from other forms of legal debt recovery.
This was one of the key points in the Bankruptcy (Amendment) Bill 2016 which was passed in the Dewan Rakyat yesterday.
Social guarantors are defined as those who do not profit and essentially provide a guarantee for an education loan, hire-purchase transactions for personal or non-business use, or a housing loan for personal dwellings.
Social guarantors cannot be declared bankrupt but other action can be taken by creditors.
For example, they could freeze an account or seize the property (of the social guarantor), said Minister in the Prime …
Read the full article at: http://www.thestar.com.my/news/nation/2017/03/30/fairer-system-for-guarantors-they-wont-be-declared-bankrupt-if-borrowers-fail-to-repay-debts/