INTRO

Defi: legal process – debtor asset by an order of court are taken by the DGI – to distribute the assets among his creditors
Jurisdiction: High Court

Party Involved

a) Debtor
- S 3 (3) of Bankruptcy Act define the word debtor
- S 5 (1)(d) of BA: conditions for Creditors Petition
Deceased Debtor
- S 122 (2) BA – proceeding stayed if the petition has been presented and served
Person capable to be adjudged bankrupt
i) Foreigner
If falls within the defi of debtor in S 3 (3) & 5 (1)(d) of BA
ii) Married Women
S 120 of BA
iii) Minors or infant
# Re Davenport
Through ad litem
iv) Lunatic, person of unsound mind
Mental Disorder Ordinance 1952
v) Companies
Cannot = S 121 BA
vi) Firms
S 103
Rule 219 & 221 Bankruptcy Rule
vii) Social guarantor
S 5(3) immune so long as creditor cannot proves he had exhausted all avenues to recover debt owed to him by the debtor.
S 2 of BA define “social guarantor”

b) Creditor
Preferential creditors – S 43
~ highest priority
Secured Creditors
~ Schedule C
Unsecured creditors
~ a person not entitled to any priority
DGI
~ the receiver of the property of the debtor upon making the RO

Irrecoverable debts
- S 40 BA demand of unliquidated damages
- Debts barred by LA
- Debts from illegal transaction
- Money claimed under under pending proceeding – there is uncertainty and no finality in the claim
- Debts incurred on / after the commission of bankruptcy
- Claim for non payment of alimony

Requirement
- Act of bankruptcy was committed
- Minimum debt owed: RM 30,000 or more (S 5 of BA)
Office copy of the judgment