A Guide to Enforcement Options in Malaysia
In Malaysia, once a creditor has obtained a judgment against a debtor, there are several enforcement options available to recover the debt. Here’s a quick guide to the types of assets that can be targeted and the legal procedures involved:
1. Bank Accounts
Creditors can apply for a garnishee order to freeze and seize funds directly from the debtor’s bank accounts. This order directs the bank to transfer the debtor's money to the creditor.
2. Property
If the debtor owns real estate, creditors can apply for an order of "Seizure and Sale". This allows the property to be seized and sold at auction to satisfy the debt.
3. Wages
A creditor can apply for a judgment debtor summons, where the court can order the debtor to pay the debt in installments from their salary/income. (If the debtor fails to make the payments without just cause, there is a possibility of jailtime up to 6 weeks!)
4. Movable Assets
Creditors can also seize movable assets such as vehicles, equipment, and inventory. A writ of seizure and sale can be issued to confiscate and sell these items.
5. Shares and Investments
If the debtor owns shares or other investments, these can be targeted through a charging order/order for seizure & sale. This order gives the creditor rights over the debtor’s shares, which can also be sold to recover the debt.
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