Can a Judgment creditor issue a bankruptcy petition against the following persons?

(i) Siti, is an 18 year old student, pursuing a Foundation in Law course in one of the Malaysian
universities She has been given a Supplementary credit card by her Mother to help meet her
financial needs She has over the last 6 months incurred outstanding bills of RM 36 000 or RM 120
000 for tuition fees, accommodation and lifestyle expenses

S.3 of Insolvency Act 1967 states that the debtor who is personally presented in Malaysia or
has a place of residence; or having his business in Malaysia or was a member of a firm or partnership
which carried on business in Malaysia an action of bankruptcy may be commence against him.

S.5(1)(a) of IA 1967 states that the threshold for a bankruptcy proceeding has now been
increased to RM100,000.

S.5(3)(a) of IA 1967 provides that the debtor shall not commence a bankruptcy petition
towards a social guarantor. S.2 of IA defines a social guarantor as a person who does not profit and
essentially provides a guarantee for education loan.

In Hong Leong Bank Bhd v Khairulnizam bin Jamaludin, the court held that the petition has
to satisfy the that the creditor has exhausted all revenue to recover debts owed to him by the
debtor. In this case, the appellant was able to satisfy the court that the appellant had fulfilled all the
requirement under S.5(3) of IA to commence an action against the respondent.

In the current situation, Siti is a student in a Malaysian university, she is said to have her
domicile in Malaysia. Applying S.5(1) of IA, the amount of debt she owed is RM120,000, the debtor
may commence an action against her. As for her mother, she is protected by S.5(3)(a) as she is the
social guarantor for Siti.

In conclusion, the debtor may issue a bankruptcy petition against Siti.

(ii) Vlad Wallachia, is an officer at the embassy of Xanadu, and has been living in Kuala Lumpur
since September 2014 He enjoys the good life and often spends beyond his means He has
outstanding credit card bills amounting to RM 56 000 ..(or RM 156 000)

S.3 of Insolvency Act 1967 states that the debtor who is personally presented in Malaysia or
has a place of residence; or having his business in Malaysia or was a member of a firm or partnership
which carried on business in Malaysia an action of bankruptcy may be commence against him.

S.5(1)(a) of IA 1967 states that the threshold for a bankruptcy proceeding has now been
increased to RM100,000.

In this current situation, Vlad Wallachia had been living in Malaysia since 2014 and he is also
an officer of embassy of Xanadu, he is said to have his domicile and place of business in Malaysia.
Furthermore, the amount of money he owed is RM 156,000 which had exceeded the threshold for
bankruptcy petition.

In conclusion, the debtor may issue a bankruptcy petition against Vlad Wallachia.

(iii) Mrs Cash, is a happily maried young woman who loves collecting antiques Recently she bought
a 15 th Century black lacquer painted chest for RM 45 000 (or RM 150 000 on 3 months credit,
from Antique Furnitures Sdn Bhd Contrary to the credit arrangements she has not paid for it to
date
 S.3 of Insolvency Act 1967 states that the debtor who is personally presented in Malaysia or
has a place of residence; or having his business in Malaysia or was a member of a firm or partnership
which carried on business in Malaysia an action of bankruptcy may be commence against him.

S.5(1)(a) of IA 1967 states that the threshold for a bankruptcy proceeding has now been
increased to RM100,000.

S.120 of IA states that the application against a married woman is the same as if they were
single. However, in Re Mahmooda b Ismail, the court ruled that if the wife does not have a separate
property of her own, the application against her may not succeed.

In the current situation, Mrs Cash is a married woman, however, the fact did not suggest
that she does not have any separate property of her own, therefore S.120 of IA is not applicable.
Thus applying S.5(1)(a) of IA 1967, the amount of debt she owed is RM150,000 which has exceeded
the threshold.

In conclusion, the debtor may issue a bankruptcy petition against Mrs Cash.

(iv) Datuk Ta Da, a member of parliament for Tampin, bought a new car for RM 300 000 and has
not been able to meet his car loan payments amounting to RM 36 000 over the last 5 months

S.3 of Insolvency Act 1967 states that the debtor who is personally presented in Malaysia or
has a place of residence; or having his business in Malaysia or was a member of a firm or partnership
which carried on business in Malaysia an action of bankruptcy may be commence against him.

S.5(1)(a) of IA 1967 states that the threshold for a bankruptcy proceeding has now been
increased to RM100,000.

In the current situation, Datuk Ta Da had only owed the creditor RM 36000, applying
S.5(1)(a), the amount does not meet the threshold for a creditor to commence an action of
bankruptcy. However, if Datuk Ta Da still fails to pay the loan when the amount reaches RM 100,000
then the creditor may commence an action against him. Although he is a member of parliament,
issue of bankruptcy is not covered by parliamentary privilege.

In conclusion, the debtor may not issue a bankruptcy petition against Datuk Ta Da.

(vi) Tok Sayang died on the 20 Sept 2016 leaving unpaid debts in the sum of RM 120 000

S.122(2) of IA states that a creditor may commence an bankruptcy action against the estate
of a deceased debtor.

In the current situation, although Tok Sayang had passed away, by virtue of S.122(2), the
creditor may still commence an action against his estate.

In conclusion, the debtor may not be able issue a bankruptcy petition against Tok Sayang,
but they may issue a petition against his estate.