Surge in self-declared bankruptcies worrying, says Insolvency DG

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Surge in self-declared bankruptcies worrying, says Insolvency DG
Self-DeclaredInsolvency DepartmentM. Bakri Abd Majid
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PUTRAJAYA: The rising trend of people declaring themselves bankrupt is a concern as it shows many are struggling with severe financial difficulties, says the Insolvency Department director-general Datuk M. Bakri Abd Majid .

"We're seeing a rise in individuals declaring bankruptcy because they feel that they cannot repay their debts. "With a Debtor's Petition, an individual can apply for a court order to declare bankruptcy without any minimum debt threshold. They simply need to complete the required documents and pay a deposit.

"I'm concerned that some individuals may take advantage of the system. They could file a Debtor's Petition, declare bankruptcy, and then, knowing they can be discharged within three years by making minimal payments, use the Second Chance Policy to clear their status," he said.

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Self-Declared Insolvency Department M. Bakri Abd Majid Debtor's Petition Creditor's Petition Second Chance Policy

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