OWED MONEY?
A Simple Guide to Recovering Debts Up to RM5,000 in Malaysia—Without a Lawyer.
An Infographic By
A Simple Guide to Recovering Debts Up to RM5,000 in Malaysia—Without a Lawyer.
An Infographic By
The debt is RM5,000 or less.
You are an individual suing, not a large company.
It's for unpaid loans, goods, services, or rent.
If you checked all three, you can use this fast, affordable path to justice.
Complete Form 198 (Statement of Claim). State clearly what you're owed and why. You can get the form from any Magistrate's Court registry.
You must officially deliver the filed form to the person or company who owes you money (the "debtor"). This can be done via AR Registered Post or by personal delivery.
The debtor has 14 days from the date they receive the documents to file their defence using Form 199.
The court will set a date. Bring all your evidence: invoices, bank statements, contracts, WhatsApp messages, photos. Present your case simply and clearly to the Magistrate.
If you are successful, the Magistrate will issue a judgment ordering the debtor to pay you the amount owed, plus costs (like the filing fee). You may also be awarded 5% post-judgment interest.
Timeline: 1-2 Weeks
Cost: ~RM10 - RM25
Timeline: 1-2 Months
Cost: None (No lawyer fees)
Timeline: 2-4 Weeks
Cost: Varies (Depends on method)
A judgment is an order, but not cash in hand. If the debtor ignores it, you can enforce it.
Court seizes and auctions the debtor's assets.
Freezes the debtor's bank account and redirects funds to you.
Forces debtor to court to declare their assets under oath.
Before filing, send a formal letter giving them 7-14 days to pay. Judges appreciate this final attempt to resolve the issue out of court.
You must file your claim within 6 years from when the debt was due. After that, your claim may be legally barred by the Limitation Act 1953.