Govt works towards discharging bankrupts in less than 36 days

KUALA LUMPUR — Bankrupts can be discharged in less than 36 days under a government initiative to accelerate the financial recovery of individuals eligible for a second chance. The Fast Track Discharge Programme, to be implemented through the Malaysian Insolvency Department (MdI) aims to further shorten the processing time for bankruptcy discharges to less than 36 days. Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said told the Dewan Rakyat this could begin next year. She said the move was a continuation of the existing fast-track discharge programme, which enables eligible applications to be processed within 36 days, subject to conditions being met and no objections being raised. Azalina said the government had also strengthened its recovery efforts through the Second Chance Policy, which recorded 253,457 bankruptcy discharges from 2023 to September 2026. “These efforts will continue through the 2026 Fast Track Discharge Programme, which prioritises certain groups, including single mothers or fathers, micro, small and medium enterprise (MSME) borrowers, fraud victims and purchasers of homes in abandoned housing projects. “These measures will be supported by improvements to work processes, the expansion of digital services and stronger financial recovery mechanisms to help more eligible individuals obtain a second chance,” she said when winding up the debate on the Supply Bill 2027 (Budget 2027) at the policy stage for her ministry in the Dewan Rakyat today. Azalina said the digitalisation of MdI services also enabled bankruptcy discharge applications to be submitted online through the e-Insolvensi portal. - October 26, 2026 The post Govt works towards discharging bankrupts in less than 36 days appeared first on Scoop .