First of all, the most important change made is the debt threshold for the bankruptcy procedure. The threshold for initiating bankruptcy proceedings was increased to RM50,000 under the Insolvency Act 1967 from RM30,000 previously under the Bankruptcy Act. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essaySection 5(1)(a) of the Insolvency Act 1967 now reads: “(1) A creditor is not entitled to file a bankruptcy petition against a debtor unless – (a) the debtor's debt owes the petitioning creditor, or if two or more creditors join the petition, the total amount debts owed to several applicant creditors, amounts to fifty thousand ringgit. This section provides that the minimum debt for bankruptcy proceedings is RM50,000 and that bankruptcy proceedings may only be commenced against the debtor if the debt amounts to RM50,000. Referring to Parliament's Hansard regarding the Insolvency Act 1967 at page, the basic intention of Parliament in increasing the threshold is to reduce the rate of insolvency and provide protection. In our opinion, the situation after amendment is better because RM50,000 would be a more appropriate figure for today's modern society. Indeed, the previous threshold of RM30,000 was set in 2003, 15 years ago. Therefore, it can be confidently said that RM30,000 is not keeping pace with inflation. And above all, with a higher threshold, the bankruptcy rate will be reduced, which will benefit our entire country.Exemption of social guarantors from bankruptcy proceduresThe next major amendment made concerns the exemption of social guarantors from bankruptcy procedures . A social guarantor is defined in section 2 of the Insolvency Act 1967 as one who does not benefit from the provision of security for an education loan, hire purchase transaction of a vehicle for personal or non-professional use and a housing loan for personal accommodation. In the past, the Bankruptcy Act of 1967 allows the initiation of bankruptcy proceedings against the social guarantor if all avenues have been exhausted by the creditor in order to recover the debt from the debtor, as provided for in Article 5 (3) of the Bankruptcy Act 1967, while the current section 5(3) (a) of the Insolvency Act 1967 provides an absolute prohibition on commencing bankruptcy proceedings against social guarantors. Section 5(3) (a) of the Insolvency Act 1967 reads: to make any application for bankruptcy against a social guarantor. » This means that social guarantors will no longer be subject to bankruptcy proceedings if borrowers fail to repay their debts. The reason for this amendment is to provide protection and a fairer system to social guarantors, who have always been victims and declared bankrupt due to non-repayment of debt. It should be noted, however, that other actions may be taken against the social guarantors by creditors, even if the social guarantors cannot be declared bankrupt. Furthermore, it is important to note that the absolute prohibition only applies to social guarantors, because the creditor can initiate bankruptcy proceedings against a guarantor other than a social guarantor if court authorization has been granted . Keep in mind: this is just an example.Get a custom article now from our expert writers.Get a custom essayIn our opinion, the absolute prohibition of bankruptcy proceedings against the social guarantor is automatic discharge.