There is a new provision in Insolvency Act, 2016 to avoid a debtor be declared bankrupt. The scheme known as Individual Voluntary Arrangement is an agreement between a debtor with their creditors offering to settle their debts with specific terms and period. This proposal start off with the appointment insolvency practitioner as “Nominee” who will prepare the scheme to get court sanction. If the scheme is approved the debtors be given time to pay off the debts with the supervision of the “Nominee”.
The licensed insolvency practitioners must be registered with Malaysian Department of Insolvency before taking up any appointment as “Nominee”.