LABUAN: The Insolvency Department should make clear whether it gives blanket approvals or sanctions whenever any bankrupt seeks its help to sue other parties.
Or if it carries out due diligence first like finding out why the person was declared a bankrupt in the first place, before doing so.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});“It may be necessary to first distinguish whether the person’s bankrupt status is due to a loan default or credit card non-payment, for example.
“However, a line must be drawn when the bankrupt requesting such approval or sanction is a rogue businessman, etc, who had swindled money or cheated innocent members of the public and whose action to recover their monies resulted in him or her being declared bankrupt,” said activist Lau Seng Kiat.