“My cousin borrowed RM35K from me and is avoiding me when I ask for repayment. What can I do?”

QUESTION:

I would like to ask how can I claim a debt amounting to almost RM35K? My cousin borrowed from
me and is avoiding me when I ask for repayment. What can I do?

ANSWER:

Can discuss face to face in private to get the certainty of payment of the debt. Give a timeline for
repayment. After exceeding the period and still unpaid, can appoint a lawyer to issue a Letter of

Demand. In our firm, we will put a clause where the debtor can still negotiate and only through us
as a mediator.

What can be considered a debt?

Debts may arise out of loans from financial institutions. Debts may also arise out of a friendly loan
between individuals. Tenants may owe rent to their landlords and patients may owe unpaid medical
bills to hospitals or clinics. As for businesses concerned with the buying and selling of goods, debts
may arise from goods or property that have been delivered but remain unpaid by the purchaser. If
you are a service provider, you may also sue for outstanding or unpaid fees for services rendered.

What is the limitation period?

you must be aware that there is a time limit to bring a debt recovery action against the debtor and
you must ensure that you commence the debt recovery action within the time allowed by law.

According to the Limitation Act 1953[1], you have six years from the due date of payment to
commence legal action against the debtor.

Here are some steps to debt claims:

1. Resolve the debt amicably: The best first step is to try to settle the debt amicably with the debtor.
   If it doesn’t work, then proceed to the next step.
2. Gather evidence: Make sure you have all the evidence you need to strengthen your case. This
   includes agreements or contracts signed by you and the debtor, proof of payment and relevant
   written communications or recorded conversations.
3. Get legal advice: You should get legal advice from a professional lawyer to ensure you have the
   right strategy in claiming debt in Court.

Judgment Creditor and Judgment Debtor

Upon obtaining a judgment from the court, the person or company whom the judgment is in favour
of will be referred to as the “Judgment Creditor”; the person or company whom the judgment is
against will be known as the “Judgment Debtor”. The judgment creditor is then entitled to demand
the sum stated in the judgment (the “judgment debt”) from the Judgment Debtor. If the Judgment
Debtor refuses to pay the judgment debt, there are a few ways that you as the Judgment Creditor
can consider to recover the judgment debt from the Judgment Debtor.

Ways to recover the Judgment Debt:

1. Judgment Debtor Summons
2. Garnishee Proceedings
3. Writ of Seizure and Sale
4. Winding-up Proceedings
5. Bankruptcy Proceedings
6. Order of Committal

Want more advice? Contact us now!
“Your Lawyer & Rescuer!”