Good day to all lowyat members, sorry if my topic is under the wrong part of the forum, please close it if it is =)

Anyhow, my relative is sued for bankruptcy on year 2009 (he is still not bankrupt at the moment, but blacklisted), he transferred his property (own house) to his sister in the same year 2009. I've heard that the official assignees or government have to power to take back the property of the bankrupt (even after transferred or sold to third party). Is this true?

but it will have cooling period of 6 month

i believe after it is 'sold', there is no one else can take back. i mean think of it, if i spent 500k to buy a property, 2 years later some authority said they will take property away because it was owned by a bankrupt person.

however i believe transfer within family members, there is a term for this, the transaction type is called something like "act of love". in this scenario, i believe the property can be taken back.

my dad used to owe banks a lot of money, thinking of transferring the properties and file bankrupt but eventually didnt go ahead. i believe is for the same reason.

It depends the situation, if you friend is being bankruptcy sued then transfer his properties to others, this is against to the laws. The liquidators may be authorised by the commercial court to liquidate your assets and return the money to the debtors.

If your friend transfer his properties to others before being sued bankruptcy, then it is likely safe. However, if your intention is significant, the debtors may sue you to commercial court, and your assets may be reserved.

Beware of some borrowing terms and conditions, some debts require collateral to protect their interest, therefore you could not simply sell or transfer your assets, unless you have got their permission to do so. Otherwise, you may breach the agreement of debts, you may be sued under commercial court as well.

Transfer the asset and sell the asset is 2 different action. If transfer with bad intention, the agreement between the both party of asset transferred can be void.

This post has been edited by doraemonkiller: Jan 22 2012, 04:55 PM

It is true.

If the asset is just being transferred prior before 2/5 years, it can be recalled back.

http://www.insolvensi.gov.my/index.php?opt...mid=587&lang=en

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Added on January 23, 2012, 11:31 amSold and transferred is 2 totally different situation, TS is asking about transfer.

This post has been edited by cherroy: Jan 23 2012, 11:31 AM

in the event of this,
your relative may be charged with fraud in court.

if your relative has the intention of avoiding assets being confis, bank has the right to reverse the transferring.

if your relative wanted to sell the prop before he/she goes bankcrupt, i am not sure if the transfer be successful or not.

hope this helps.

Thank you everyone for helping me out. By the way Cherroy, u said 2 / 5 years, why is there 2 different duration?

Also is there any better place i can get more information on this matter? Does law firm deal with such cases?

Maybe u can post your topic/query in below thread - "Lawyer's Corner v2".

http://forum.lowyat.net/topic/2138486/+300