Debt Recovery - Frequently Asked Questions

It is advisable to take legal actions soonest possible to protect your right. If the debt owed to you was due and owing to you for a duration of more than six (6) years, you will lose your legal right to file a  claim for the outstanding sum.

It depends on the available documents and your facts leading up to the dispute.

It depends on the complexity of the case and it normally takes between nine (9) months to two (2) years.

Yes, provided that you have proof that the debtor does not have a defence to your claim.

However, there are certain claims where the Court will not allow the claim to be disposed of quickly and the trial proceedings is inevitable.

When a judgment is pronounced in your favour, by right, the losing party will have to comply with the judgment and pay the judgment sum to you within the stipulated time as stated in the judgment.

The Court will normally award cost to the winning party but the amount of cost awarded by the court is discretionary.

No, unless the losing party has obtained an order for the stay of execution of the judgment.

It will normally takes between nine (9) months to two (2) years.

You will then have to enforce or execute the judgment namely to file an application to court to seek: –

1. An order for examining the losing party on oath at court, during which the losing party is enquired to inform of his financial status and the information of his assets;
2. An order for sale of the property of the losing party and obtain the proceeds from the sale;
3. An order for directing a third party (normally is the financial institutions), who is indebted to the losing party to pay you directly;
4. An order to declare the losing party (individual) bankrupt if the amount of debt is RM100,000.00 or more.
5. An order to wind up the losing party (corporation) if the amount of debt is RM50,000.00 or more.