The Common Question Of Debt Recovery in Malaysia
1) How to determine the Court for me to file my action?
The amount of claim will determine the Court that you should file your action in.
2) Is there a time limit to commence legal action against your debtor?
Yes. According to Section Limitation Act, the time limit to commence legal proceedings against your debtor is 6 years from the date on which the cause of action accrued.
3) What type of documents are needed to support my claim?
There is no hard-and-fast rule in law which states that what document you must produce as evidence in the Court. The typical documents are as follows:
- The agreement signed between parties;
- The purchase order;
- The delivery notes; and
- The invoice.
You may also provide any documents that you think it is related to the claim. You should consult your lawyer as the documents required are different in different situations. Thus, it is essential to always keep your business and transactional documents in good record and order.
4) Upon obtaining the judgment against my debtor, my debtor still fails, neglect or refuse to pay the debt, what can I do?
Obtaining judgment does not mean that your money is recovered. In the event that your debtor still fails, neglect or refuse to pay the debt, you may apply to the Court for enforcement of a judgment against your debtor. Please take note that there is a time limit to enforce the judgment, which is 12 years from the date of the judgment.
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[…] mentioned in Part II of Debt Recovery in Malaysia, the fact that you successfully obtain a judgment in favour of you does not mean that […]