If you are interested in debt recovery in Malaysia, you should hire a specialist. Here, our Malaysian lawyers can provide legal advice & guidance and explain the key methods for debt collection. Explore this article and reach out to us for comprehensive assistance.
| Quick Facts | |
|---|---|
| Who can contact our debt collection lawyers in Malaysia? | Both natural persons and company owners interested in recovering debts |
|
Types of debt collection in Malaysia |
Through mediation and in the court of law in Malaysia |
|
Legislation |
Limitation Act 1953 |
| The first step in debt recovery | Notifications are sent to debtors with information about the amount of money they owe. |
| Credit verification of the debtor’s company |
With the help of our Malaysian lawyers |
| Drafting and sending official demand letters |
As part of the amicable procedure to recover debts |
| We can prepare cases for further legal actions (YES/NO) |
YES |
| Personal negotiations with the debtor in question |
Our team can handle negotiations to establish new payment terms. |
| New payment schedule proposed |
Possible |
| We are specialists in international debt collections implying Malaysian citizens | We can provide personalized strategies once we analyze the debt collection case. |
| How long does it take to recover money through the amicable procedure in Malaysia? |
Around 90 days |
| Advice when legal action is required |
Once our lawyers in Malaysia decide that the amicable procedure is not an option. |
| Communication with our clients regarding the case |
Our clients will be informed about the stage of the debt collection process in Malaysia. |
| No-win no-fee services |
Customers pay a specific fee once the debt recovery process is concluded. |
| Why work with our law firm in Malaysia? |
– experience, – efficiency, – professionalism, – expertise, – legal advice at affordable costs |
Table of Contents
Who can hire our debt collection lawyers in Malaysia?
Both natural persons and company owners who want to recover debts in Malaysia.
What is the first step in debt collection in Malaysia?
Make a claim first. Our Malaysian attorneys can help from the start.
What debt collection methods are available in Malaysia?
- Amicable procedure,
- In the court of law.
NOTE: A letter of demand will serve as the latest statement of amounts due to the debtor.
You may explore this infographic with details on this subject:
What types of debts can be collected in Malaysia?
- Unpaid bills,
- Loans,
- Commercial debts,
- Contractual payments,
- Rental debts, etc.
How is the amicable procedure of collecting debts done in Malaysia?
Amicable debt recovery, or debt recovery through mediation, is often preferable. Here is what it entails:
- a claim is the starting point for debt collection. This can be done by our Malaysian lawyers,
- a reminder/notification with outstanding payment is sent to the debtor. This can be a demanding letter,
- if the debtor responds to the notification, our specialists can start the negotiation process,
- new payment terms can be established.
NOTE: If the debtors do not respond to any of our reminders, the case will be sent to court.
Can foreign companies collect debts from Malaysian partners/firms?
Yes, we can initiate debt collection proceedings and enforce foreign judgments if necessary. Cross-border debt collection is possible at our law office in Malaysia.
Our lawyers in Malaysia invite you to watch this video about debt collection:
Are direct negotiations possible in debt collection in Malaysia?
Yes, with new payment plans and settlement arrangements.
Is debt collection through an amicable procedure expensive in Malaysia?
No, on the contrary. Debt collection in Malaysia through mediation is less costly compared to a trial.
How is debt recovery done in the court of law in Malaysia?
Our Malaysian lawyers can start the process by soliciting the first documents, such as:
- Invoices,
- Purchase orders,
- Business contracts,
- Delivery note,
- Bank statements, etc.
- Enforcement measures will be issued against debtors, such as:
- Seizure and/or sale of assets,
- Charging orders.
NOTES:
- bank accounts, salaries, movable and immovable properties can also be seized in a debt collection process through litigation in Malaysia,
- friendly settlement negotiations should be considered a permanent alternative to prolonged legal action.
Immigration to Malaysia and the procedures involved can be managed by our experts, as can legal advice on debt recovery. Please feel free to contact our law firm in Malaysia. Our attorneys will explain the steps in the debt collection process and the documents you need. We can also help you apply for the Malaysia My Second Home Program (MM2H), an investment program for those seeking residency in this country.