Debt Collection in Malaysia
Updated on Tuesday 23rd August 2016
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One of the main problems investors have to deal with refers to the recovery of the debts their business partners are liable to. Although debt collection can be solved through amicable manners, at times, the companies will have to appeal to the legal assistance of consultants who can represent them in front of the court, which can provide a resolution after hearing the case. Businessmen who are interested to find out more on the debt collection procedure or those who are involved in such cases can receive legal assistance from our company formation specialists in Malaysia.
Pre-legal debt collection in Malaysia
Those who have to receive a payment based on the invoices signed with business partners and other third parties can appeal to the pre-legal debt collection method in the first instances, which refers to the amicable procedures that can resolve the case outside the court.
If the party liable to payment did not pay the sum of money stipulated in the contract, it is important to know that the local legislation does not prescribe a clear procedure for late payment interests. Still, the amicable procedure is preferable to court proceedings, as the settlement in the court can last a long period of time, at high expenses.
Businessmen who should collect a debt can negotiate with the other party an installment agreement, in which the debtor will stipulate what sums of money will be paid at a certain date; our team company formation agents in Malaysia can provide more details on this matter.
Legal debt collection in Malaysia
In the situation in which the collection of the debt fails to be resolved through the amicable procedure, the parties involved can address the case to a Malaysian court. Ordinarily, the creditor will address to the High Court, which will further announce the debtor on the case, who must appear before the court at a specified deadline. In the situation in which the resolution provided by the High Court is not satisfactory for the parties involved, the case can be addressed to the Court of Appeal.
Persons who need further information on the debt collection procedures or procedures related to setting up a company in Malaysia can contact our team of company incorporation representatives.