Akta Penghutang 1957 (Akta 256) & Debtors Act 1957 (Act 256) (Hingga 25hb April 2021)

The purpose of the Debtors Act 1957 is to provide a legal framework for the recovery of debts by creditors, while also ensuring that debtors are not subjected to unfair or abusive practices. The act applies to both individuals and companies, and covers all types of debts, including loans, credit card debts, and other forms of consumer credit.

Some of the key provisions of the act include:

1. Debt Recovery Proceedings: The act outlines the procedures that creditors must follow when attempting to recover debts from debtors. These procedures include sending a demand letter to the debtor, filing a claim with the court, and obtaining a judgment against the debtor.

2. Protection for Debtors: The act also provides protection for debtors against certain unfair practices, such as harassment, intimidation, or misrepresentation by creditors. Debtors are also entitled to a fair hearing in court, where they can present their case and challenge the creditor's claim.

3. Enforcement of Judgments: Once a judgment has been obtained against a debtor, the act provides for various methods of enforcing the judgment, including garnishing the debtor's wages, seizing their property, or obtaining a court order for the sale of their assets.

4. Bankruptcy Proceedings: In cases where a debtor is unable to repay their debts, the act provides for bankruptcy proceedings. This allows creditors to seek the appointment of a trustee to manage the debtor's assets and distribute them to the creditors in a fair and equitable manner.

Overall, the Debtors Act 1957 is an important piece of legislation that provides a legal framework for debt recovery in Malaysia. It ensures that both creditors and debtors are treated fairly and that debt recovery is conducted in a transparent and lawful manner.