KUALA LUMPUR: The Bankruptcy (Amendment) Bill 2016, which among others, protects social guarantors from being declared bankrupt, was passed by Parliament yesterday.
Minister in the Prime Minister’s Department Datuk Seri Azalina Othman Said described the bill as a reform to provide for a fairer system for social guarantors.
“This is because when we look at the definition of social guarantors, they are not guarantors who are profit oriented, but they stood as guarantors for study loans, research grants,” she said when winding up the debate on the bill.
“The person may not be declared a bankrupt, but there are still other actions that can be taken,” she added.
Earlier, when tabling the bill, Azalina said the government considered eight policy changes when amending the Bankruptcy Act 1967, which included preventing bankruptcy action on social guarantors and raising the minimum threshold for bankruptcy. — Bernama