Bankruptcy...Insolvency... What's that???

I was approached by a Client wherein whose case is about Insolvency & Bankruptcy matters. I further did some research on bankruptcy Act and spoke to the Insolvency Department Officer.

Basically, Insolvency is differ from Bankruptcy. An act to refuse to pay Or unable to pay the debt of the Creditor is said to be insolvent, and this might constitutes to Bankruptcy. A person is said to be Bankrupt only when he Or she is declared Bankruptcy by the Court through an Order. This Order is due when The said Creditor files an petition to Court. However, there are so called "Rules & Regulations" where the Petitioner needs to obey & follow and these said Rules are governed under Bankruptcy Act 1967.

The petition shall come effect commencing the Grant of the Order of Bankruptcy. This Order might sounds "Protective" To the Debtor as No creditors to whom the Debtor indebted in respect of any debt shall commence any action Or legal proceedings against the Debtor. However, the weather isn't stay nice & windy for the whole day, it always come with rain. Similarly, the "Protected" Debtor would probably loses all his rights on his property's affair. Every single of his assets com into the hand of the Director General of Insolvency. And these assets shall further become divisible among his creditors.

Dudes, never think of "Running" away from this "Protect". Never think of imigrating to other countries as u might think that probably will free yourself from all liabilities. Why? This is simple because the Court can at any time detain u and the Court can commit u to Prison unless u give a security where u promise not to leave the country.

However, we have to remember that the above mentioned situations are due to personal bankruptcy. There is also the other type of bankruptcy where it will sense more "protective" to the Bankrupt. This happens when a receiving order is made against a firm in the firm's name the Court shall not adjudge any person bankrupt as a member of the firm unless such person is proved to the satisfaction of the court to be a partner by his own admission or by evidence of oath.