Insolvency Act 1967

Akta Insolvensi 1967

Deals with the insolvency and bankruptcy of an individual and a firm and for connected matters.

Copy of the official text captured from the Laws of Malaysia portal (AGC) on 26 October 2026. Always check the official portal for the authoritative current version. Amendments made after the official “last updated” date are published separately as amending Acts (Act A…) on the portal.

Number	Act 360
Type	Federal Act
Applies to	Federal
Subject	Courts & legal profession
Year	1967
Official “last updated”	1 November 2024
Published by	Attorney General's Chambers — Laws of Malaysia portal (lom.agc.gov.my)
Text as at	1 November 2024
First enacted	1967 (Act 55 of 1967)
Revised	1988 (Act 360 w.e.f. 31 December 1988)

Long title

An Act relating to the insolvency and bankruptcy of an individual and a firm and for connected matters.

Contents — Parts and sections

163 sections in 8 Parts, headings copied from the “ARRANGEMENT OF SECTIONS” of the official text (copy of 26 October 2026). Read the full wording in the PDF.

Definitions: section 2 (Interpretation).

PRELIMINARY
s 1 Short title and application
Interpretation
s 2 Interpretation

Part I VOLUNTARY ARRANGEMENT AND PROCEEDINGS IN BANKRUPTCY (50)

Voluntary Arrangement
s 2A Voluntary arrangement
s 2B Non-application
s 2C Intention to propose voluntary arrangement
s 2D Interim order
s 2E Effect of interim order
s 2F Nominee
s 2G Registration of nominee
s 2H Register of nominees
s 2I Meeting of creditors to approve debtor’s proposal
s 2J Report of decisions to court
s 2K Effect of approval
s 2L Review of meeting’s decision
s 2M Replacement of nominee before voluntary arrangement concludes
s 2N Implementation and supervision of approved voluntary arrangement
s 2O Consequence of failure by debtor to comply with voluntary arrangement
s 2P Cessation of voluntary arrangement
s 2Q Fees of nominee
Acts of Bankruptcy
s 3 Acts of bankruptcy
Bankruptcy Order
s 4 Bankruptcy order
s 5 Conditions on which creditor may petition
s 6 Proceedings and order on creditor’s petition
s 7 Debtor’s petition and order thereon
s 8 Effect of bankruptcy order
s 9 (Deleted)
s 10 Discretionary powers as to appointment of interim receiver and stay of proceedings
s 11 Service of order staying proceedings
s 12 Power to appoint special manager
s 13 Advertisement of bankruptcy order
s 14 (Deleted)
Proceedings Consequent on Bankruptcy Order
s 15 Meeting of creditors
s 16 Bankrupt’s statement of affairs
Public Examination of Bankrupt
s 17 Public examination of bankrupt
Composition or Scheme of Arrangement
s 18 Power for creditors to accept and court to approve composition or arrangement
s 19–23 (Deleted)
Consultative Committee
s 24 (Deleted)
s 25 Consultative committee
s 26 (Deleted)
Control over Person and Property of Debtor
s 27 Duties of bankrupt as to discovery and realization of property
s 28 Arrest of debtor under certain circumstances
s 29 Release of debtor on security
s 30 Redirection of letters
s 31 Discovery of bankrupt’s property
s 32 Director General of Insolvency to settle list of debtors to the estate
Discharge of Bankrupt
s 33 Discharge of bankrupt by order of court
s 33A Discharge of bankrupt by Certificate of Director General of Insolvency
s 33B Objection by creditor to discharge of bankrupt under section 33a
s 33C Automatic discharge and suspension of automatic discharge
s 34 Fraudulent settlements
s 35 Effect of discharge
s 35A Discharged bankrupt to give assistance

Part II DISQUALIFICATION AND DISABILITIES OF BANKRUPT (5)

s 36 Disqualification of bankrupt
s 37 Vacating offices by bankruptcy
Undischarged Bankrupt
s 38 Duties and disabilities of bankrupt
s 38A Power to prevent bankrupt from leaving Malaysia
s 39 List of undischarged bankrupts to be kept

Part III ADMINISTRATION OF PROPERTY (33)

Proof of Debts
s 40 Description of debts provable in bankruptcy
s 41 Mutual credit and set-off
s 42 Rules as to proof of debts
s 43 Priority of debts
s 44 Preferential claim in case of apprenticeship and in respect of passage money
s 45 Power to landlord to distrain for rent
s 46 Postponement of husband’s or wife’s claims
Property Available for Payment of Debts
s 47 Relation back of Director General of Insolvency’s title
s 48 Description of bankrupt’s property divisible amongst creditors
s 49 Provisions as to second bankruptcy
Effect of Bankruptcy on Antecedent Transactions
s 50 Restriction of rights of creditor under execution or attachment
s 51 Property taken in execution
s 52 Avoidance of voluntary settlement
s 53 Avoidance of preferences in certain cases
s 53A Avoidance of assignment of book debts
s 53B Property or proceeds therefrom deemed to be property of Director General of Insolvency
s 53C Fair market value may be fixed on review
s 54 Protection of bona fide transactions without notice
Realization of Property
s 55 Possession of property by assignee
s 56 Seizure of property of bankrupt
s 57 Appropriation of portion of pay or salary to creditors
s 58 Vesting and transfer of property
s 59 Disclaimer of onerous property
s 60 Powers of Director General of Insolvency to deal with property
s 61 Powers exercisable by Director General of Insolvency subject to orders of court
Distribution of Property
s 62 Declaration and distribution of dividends
s 63 Joint and separate dividends
s 64 Provision for creditors residing at a distance, etc.
s 65 Right of creditor who has not proved debt before declaration of a dividend
s 66 Final dividend
s 67 No action for dividend
s 68 Power to allow bankrupt to manage property
s 69 Right of bankrupt to surplus

Part IV DIRECTOR GENERAL OF INSOLVENCY (20)

Appointment
s 70 Appointment of Director General of Insolvency and other officers
Duties
s 71 Status of Director General of Insolvency
s 72 Duties of Director General of Insolvency as regards the bankrupt’s conduct
s 73 Duties of Director General of Insolvency as to bankrupt’s estate
s 74 Protection of Director General of Insolvency and person acting under his direction or control
Costs
s 75 Allowance and taxation of costs
Receipts, Payments, Accounts, Audit
s 76 Bankruptcy Estates Account
s 77 Investment of surplus funds
s 77A Insolvency Assistance Fund
s 78 Inspection and audit of Director General of Insolvency’s accounts
s 79 Director General of Insolvency to furnish list of creditors
s 80 Books to be kept by Director General of Insolvency
s 81 Official examination of Director General of Insolvency’s records
Release
s 82 Release of Director General of Insolvency
Official Name
s 83 Official name of Director General of Insolvency
Vacation of Office on Insolvency
s 84 Office of Director General of Insolvency vacated by insolvency
Additional Powers
s 84A Additional powers of Director General of Insolvency
Control
s 85 Discretionary powers of Director General of Insolvency and control thereof
s 86 Appeal to court against Director General of Insolvency
s 87 Control of court over Director General of Insolvency

Part V CONSTITUTION, PROCEDURE AND POWERS OF COURT (18)

Jurisdiction
s 88 High Court to be the court having jurisdiction in bankruptcy
s 89 Exercise in Chambers of jurisdiction
s 90 Jurisdiction in bankruptcy of Registrar
s 91 General power of bankruptcy courts
Appeals
s 92 Appeals in bankruptcy
Procedure
s 93 Discretionary powers of the court
s 94 Consolidation of petitions
s 95 Power to change carriage of proceedings
s 96 Continuance of proceedings on death of debtor
s 97 Power to stay proceedings
s 98 Power to present petition against one partner
s 99 Power to dismiss petition against some respondents only
s 100 Consolidation of bankruptcy proceedings by or against partners
s 101 Actions by Director General of Insolvency and bankrupt’s partners
s 102 Actions on joint contracts
s 103 Proceedings in partnership name
s 104 Reciprocal provisions relating to Singapore and designated countries
Annulment of Bankruptcy Order
s 105 Power of court to annul bankruptcy order in certain cases

Part VI SMALL BANKRUPTCIES (3)

s 106 Summary administration in small cases
s 107 Wage-earner
s 108 No public examination in small cases

Part VII FRAUDULENT DEBTORS AND CREDITORS (12)

s 109 Punishment of fraudulent debtors
s 110 Bankrupt failing to keep proper account
s 111 Bankrupt incurring debt without reasonable ground of expectation of paying it
s 112 Penalty for absconding with property
s 113 Penalty for absconding in order to avoid service of bankruptcy process or embarrass bankruptcy proceedings
s 114 Penalty on fraudulently obtaining credit, etc.
s 115 Penalty on false claims, etc.
s 116 Debts incurred by fraud
s 117 (Deleted)
s 117A Sessions Court to have full jurisdiction to try offences
s 118 Criminal liability after discharge or composition
s 119 Form of charge

Part VIII SUPPLEMENTAL PROVISIONS (20)

Application of Act
s 120 Application to married women
s 121 Exclusion of corporations and companies
s 122 Administration in bankruptcy of estate of person dying insolvent
General Rules
s 123 Power to make rules
Fees
s 124 Fees
Evidence
s 125 Gazette to be evidence
s 126 Evidence of proceedings at meetings of creditors
s 127 Evidence of proceedings in bankruptcy
s 128 Swearing of affidavits
s 129 Death of witness
Notices
s 130 Service of notices
Formal Defects
s 131 Formal defect not to invalidate proceedings
Stamp Duty
s 132 Exemption of deeds, etc., from stamp duty Corporations, Firms and Mentally Disordered Persons
s 133 Acts of corporations, firms and mentally disordered persons
Unclaimed Funds or Dividends
s 134 Unclaimed or undistributed money
Bankrupt’s Books
s 135 Access to bankrupt’s books
Repeals and Special Provisions
s 136 (Omitted)
s 137 Transitional provisions for States of Malaya
s 138 Jurisdiction of District Officers, Sarawak and Sabah
s 139 Transitional provisions for Sarawak and Sabah
Schedule A
Schedule B (Deleted)
Schedule C
*

Mental Health Act 2001 (Act 615)Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) Act 2020 (Act 829)Courts of Judicature Act 1964 (Act 91)Accountants Act 1967 (Act 94)Immigration Act 1959/63 (Act 155)Employment Act 1955 (Act 265)Police Act 1967 (Act 344)Penal Code (Act 574)Criminal Procedure Code (Act 593)Persons with Disabilities Act 2008 (Act 685)Central Bank of Malaysia Act 2009 (Act 701)Limited Liability Partnerships Act 2012 (Act 743)

Federal Acts that this law's official text itself refers to (as “[Act N]”), most-referred first.

Cited on these pages

Enforcing a judgment Glossary of legal terms Insolvency Act 1967 Money & debt

Amendment history

Amending law	Short title	In force from
Act 160	Malaysia Currency (Ringgit) Act 1975	29-08-1975
Act A364	Bankruptcy (Amendment) Act 1976	29-10-1976
Act A710	Bankruptcy (Amendment) Act 1988	09-09-1988
Act A827	Bankruptcy (Amendment) Act 1992	17-07-1992
Act A885	Constitution (Amendment) Act 1994	24-06-1994
Act A1035	Bankruptcy (Amendment) Act 1998	01-01-1999
Act A1197	Bankruptcy (Amendment) Act 2003	01-10-2003
Act A1534	Bankruptcy (Amendment) Act 2017	06-10-2017
Act A1624	Insolvency (Amendment) Act 2020	01-09-2021
Act 829	Temporary Measures for Reducing 2019 (COVID-19) Act 2020	See section 19
Act A1695	Insolvency (Amendment) Act 2023 LAWS OF MALAYSIA Act 360 INSOLVENCY ACT 1967	06-10-2023

Copied from the “List of amendments” printed in the official text. Amendments made after the text's “as at” date are not in this list — check the portal for later amending Acts.

Version history

Captured	Language	Official “last updated”	Pages	SHA-256	File
26 October 2026	English	1 November 2024	142	`f4205b7b3826`	PDF 0.9 MB

A new version is kept only when the official file changes (different SHA-256 fingerprint). Older versions are never overwritten, so you can see what the text said on an earlier date.

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