INSOLVENCY LAW IN MALAYSIA AND THE ADJUDICATION ORDER (TAFLĪS) ON A BANKRUPT IN ISLAMIC FINANCE: SIMILARITIES AND DIFFERENCES

Bankruptcy is a legal process, under the order of a court, by which the debtor’s assets are taken by the Director General of Insolvency. These assets are later distributed equitably among the creditors. The Bankruptcy Act 1967 (hereafter referred to as the ‘Principal Act’) was amended by the Bankruptcy (Amendment) Act 2003 (hereafter referred to as the ‘Amendment Act’).