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asked on Mar 18, 2016 at 14:32
by   Anonymous
edited on Mar 30, 2016 at 02:38
 
Retrenchments hit five-year high!

KUALA LUMPUR, March 18 — The highest number of retrenchments within a five-year span was recorded last year, according to the Human Resources Ministry, with 38,499  layoffs across all sectors.

In a written reply to Tan Kok Wai (DAP-Cheras), the ministry said the manufacturing sector had the highest number of retrenchments over the last three years.

The highest number of retrenchments was recorded in 2007 (42,336), 2008 (47,145) and 2009 (64,516).

It said retrenchments could be categorised into ordinary layoffs and through the voluntary separation scheme (VSS).

Workers who are laid off will be paid according to the Employment Act 1955 or their collective agreement, the statement said.

Tan had asked the ministry to provide a breakdown of the number of workers retrenched by the various sectors in the last three years, following the economic downturn and oversupply of workers and its strategies to amend the nation’s human resources policy.

In January this year, 5,009 workers were retrenched compared to November (9,986) and December (5,758) last year.

The reduction in the number of layoffs shows the economy is getting stronger compared to the previous year although the current impact of the economic downturn is in its early stages, it added.

READ MORE: https://sg.news.yahoo.com/retrenchments-hit-five-high-says-ministry-234400948.html
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answered on Aug 16, 2011 at 02:48
by   Anonymous
edited Jul 14, 2016 at 18:29
 
Published: Monday August 15, 2011 MYT 9:21:00 PM

National Legal Aid to begin operation in Oct

PUTRAJAYA: The National Legal Aid Foundation (NLAF), where the needy can go to for free legal advice, is expected to be operational nationwide in October.

Its deputy chairman, K. Ragunath, said that, for a start, more than 1,000 volunteer lawyers, including the syariah lawyers, would offer free legal advice to the low income earners, comprising those with household income of less than RM2,000 a month or RM25,000 a year.

"About 80 percent of the accused charged in court for criminal cases are not represented.

"Hence, the formation of this foundation is timely because it will ease the burden of those from poor families," he told reporters at a media conference here on Tuesday.

He believed that the setting up of the foundation would meet the government's aspiration to ensure justice for all Malaysians.

The foundation was launched by Prime Minister Datuk Seri Najib Tun Razak last Feb 25 with a launching fund of RM5 million from the government.

Those with income of between RM25,000 and RM36,000 a year will be charged a minimum fee of RM300.

Ragunath said 15 NLAF branches would be set up nationwide and that the foundation could be reached at toll free number 1-800-889245 and 1-300-88-9245 (fax). - Bernama
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answered on Sep 24, 2011 at 17:23
by   ZUHRIN
The Star Online > Nation
Saturday September 24, 2011

Scheme to help civil servants facing bankruptcy

By ZUHRIN AZAM AHMAD
zuhrinazam@thestar.com.my

PUTRAJAYA: Cuepacs and the National Cooperative Organisation of Malaysia (Angkasa) are working on a scheme to help government employees facing bankruptcy.

Cuepacs president Datuk Omar Osman said that through the scheme, Angkasa, via its Syariah Financing Cooperative Scheme (Kopsya), would take over the debts of civil servants under strict terms.

He said the scheme would initially be made available to those who were on the verge of being declared bankrupt due to credit card debt.

“Those unable to pay personal loans may also be considered. Our intention is to save them from being declared bankrupt,” he said yesterday.

Omar said a memorandum of understanding on the scheme between Angkasa and Cuepacs would be signed next month.

“We are still fine-tuning the terms because while we want to help government employees, we must also ensure they won’t take us for a ride,” he said.

Omar added that government employees should not view the scheme as a way to live beyond their means.

“They should not apply for unreasonably large loans or defer repayment and ask the cooperatives to settle everything for them,” he said, adding that as of December last year, about 3,000 government employees had been declared bankrupt.

Meanwhile, Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said the scheme was necessary due to the alarming number of Malaysians declared bankrupt.

He said the revelation by The Star that an average of 41 people were declared bankrupt every day, mostly due to credit card debt, should be food for thought.

“There is only so much we can do by conducting awareness campaigns on spending wisely and living within one’s means.

“I am sure consumers have heard of and watched TV dramas about people with huge debts, so please learn something from their misery,” he said after launching the MyAngkasa: 1Koperasi, 1Jaringan, 1Komuniti mobile telecommunication services.
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answered on Sep 29, 2011 at 06:57
by   zizong
edited May 19, 2016 at 05:15
 
Ex-bankrupt loses house

(thestar.com.my/news/story.asp?file=/2011/9/15/nation/9501052&sec=nation)

GEORGE TOWN: A former bankrupt is crying foul that he and his wife have been left homeless after their double-storey house was sold by the Insolvency Department without their knowledge.

Salesman Tan Eng Hai, 60, said he was declared a bankrupt in 2002 after he could not pay RM40,000 to an investment management company.

“Subsequently, the department opened a bank account for me. As I did not have RM40,000 at that time, they told me I could deposit the amount into the account over the years and I’d be discharged once the amount was paid.

“However, the department sold the property at Kedah Road in October 2008 without my knowledge.

“At that time, I had RM42,000 in the account which was enough to settle the debt,” he said at a press conference called by the state MCA Public Services and Complaints Bureau here yesterday.

Tan said the department had paid the company RM121,957.36 in 2010 after selling off his house and not RM40,000 as agreed in the court order.

“I have been asking for an explanation but till now I haven’t heard anything from the department,” he said.

His wife, Ow Yong Su Sie, 45, said they received a court order to move out of the house yesterday.

Tan was discharged as a bankrupt in January this year.

State MCA Legal Bureau chief Francis Goh said the department had the right to act on behalf of a bankrupt but they needed to obtain the latter’s permission first.

“We want the department to explain the discrepancies relating to Tan’s account.

“We wrote to them on May 30 but only received a reply on Aug 10. The explanation was not clear.

“Now, the complainants have lost their house,” he said.

Bureau deputy chief Lim Thoon Deong said they would write to the department’s headquarters in Putrajaya for an explanation.

The department said it would issue a statement next week.
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answered on Nov 24, 2011 at 18:44
by   Mat Sabu
The Star Online > Nation
Thursday November 24, 2011

290 face bankruptcy over abandoned housing projects

KUALA LUMPUR: About 290 house buyers are in the process of being declared bankrupt by banks after failing to pay their loans on houses in projects that have been abandoned.

Malaysia Muslim Consumers Association (PPIM) adviser Tunku Azwil Tunku Abdul Razak said 19 house buyers had already been declared bankrupt.

“These are the buyers who had forwarded their complaints to us, but we believe many more are victims.

“The association will take action, including using legal means and referring the matter to the Malaysian Anti-Corruption Agency, to assist them in getting justice.

“We found that some of the cases involved elements of cheating,” he said.

Ahmad Zaki, 43, a victim of an abandoned housing project in Klang, said the project was developed in 1999 but had stalled since 2001.

“I have to repay the RM93,000 bank loan taken although only pillars of the promised house have gone up. The status of the project near Pulau Indah is not in the records of the Klang Municipal Council,” he said.

A victim of a car loan cheating case, who has been blacklisted by a bank, has also sought the help of PPIM.

Zilah Mahmood, 34, said the bank sent a statement as proof that he had taken a car loan purportedly with his “wife” as the guarantor when he was unmarried at that time and did not even know the “guarantor”.

“I was shocked to receive the bank loan statement as my monthly income had not even reached RM1,000, so how could I afford a car?” he said.

Zameri Zakeria, 47, is facing a similar situation as his name was blacklisted in 1997 after he was claimed to have owed RM29,136 in 48 monthly instalments for a Proton Saga car which he has never owned.

“My name appears in the bank statement issued but the signature is not mine. I have gone to the Forensics Department which has also confirmed that the signature is not mine,” he said. — Bernama
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answered on Jan 16, 2012 at 20:52
by   zizong
edited Jun 20, 2016 at 05:16
 
16 January 2012

The Star Online

Lim: Review Act so that bankrupts get second chance

PETALING JAYA: The Bankruptcy Act 1967 needs to be reviewed to allow bankrupts to apply to be discharged from bankruptcy after three years and reduce the red tape involved in the clearance process.

Deputy Finance Minister Datuk Donald Lim said it was time for the Government to review the Act to encourage young entrepreneurs and more women to start their own bu­sinesses and give another chance to those who had failed in their business ventures.

“Bankrupts should be able to apply to be released or even automatically released in three years like in other countries instead of going through procedures that could cause unnecessary hardships,” he said.

He said that in Malaysia, a person had to wait five years before applying to be discharged from bankruptcy.

“A bankrupt has to apply through the Insolvency Department, which would need a letter from the bank or other creditors. Many find it difficult to be released by the creditors,” he said after giving a talk to members of the Malaysia Women’s Career Building Association yesterday.

Lim said businessmen who were declared bankrupt after taking a business risk should be released if the person’s financial history was clear from other debts to be able to start anew.

Source: thestar.com.my/news/story.asp?file=/2012/1/16/nation/10271303&sec=nation
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answered on Oct 5, 2012 at 02:24
by   Anonymous
The Star Online > Nation
Published: Thursday October 4, 2012 MYT 7:03:00 PM

Datuk among 15 detained by Kelantan Insolvency Department

KOTA BARU: A businessman with a "Datuk" title was among 15 people arrested for disobeying a court order to resolve with the Insolvency Department, their bankruptcy cases involving over RM7.6mil in debts.

Kelantan branch Insolvency Department director, Rohaiza Abd Rahman said the 69-year-old businessman was among 285 people who were declared bankrupt by the court since early this year until September.

She said this was the first high-profile bankruptcy case in Kelantan after it was detected two years ago.

"Currently, we are detecting 270 more who were declared bankrupt but yet failed to appear at the Insolvency Department to resolve their cases and most of them were businessmen," she told a press conference at her office here, Thursday.

She urged those who are declared bankrupt by the court to come forward for their cases to be managed to enable their bankruptcy status to be removed.

"Most of those who had court action taken against them, incurred debts at the minimum of RM30,000," she said.

Rohaiza said those declared bankrupt but failed to present themselves at the Insolvency Department for consultation over their case could face action under Section 91 (2) of the Bankruptcy Act 1967 and a warrant of arrest issued against them under Section 28(1)(a) of the same Act.

She said the department had set up an enforcement unit to detect those who disobeyed court order, and from 2010 until June this year, the department had recorded 930 bankruptcy cases and most of them were aged 25 to 55 and above.

"During the period, the department also solved 1,308 bankruptcy cases throughout the state," she added. - Bernama
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answered on Feb 19, 2014 at 04:32
by   zizong
edited Jun 25, 2016 at 23:34
 
More than 20,000 expected to be declared bankrupt in 2013 due to price hikes, says Anwar

BY EILEEN NG - February 18, 2014

The number of Malaysians declared bankrupt last year is expected to exceed 20,000 as the rising cost of living and hikes in prices of goods and services put a strain on spending, said Datuk Seri Anwar Ibrahim.

Citing statistics from the Insolvency Department, the opposition leader revealed that 16,306 people, or an average of 1,812 a month, were declared bankrupt in the first nine months of last year.

In the same period, more than 27,432 bankrupt petitions were filed in the courts.
In contrast, 19,575 people, or an average of 1,631 people a month, were declared bankrupt in 2012.

"It is clear that the average number of monthly bankruptcies from January to September last year is 11% higher than the same period in 2012.

"I anticipate when the full data for 2012 is published, over 20,000 bankruptcy cases will be reported due to the increase in the price of goods and cost of living," Anwar said at a press conference at the PKR headquarters today.

The Insolvency Department is expected to release the additional data from October to December 2013 next month.

Anwar said data from the Central Bank also showed that banks had disbursed a "record number" of personal and credit card loans last year amounting to RM139 billion, compared with RM124 billion last year and RM67 billion in 2006.

He also noted of the total bankruptcies reported in 2012, 48.4% were Malays, 33.2% Chinese and 14.1% Indians.

He expressed shock that 21% or 4,100 of them were below the age of 34 years and that failure to make timely repayment for cars, housing and credit card loans were among the purported reasons for the bankruptcies.

"Most Malaysians, especially Malays, are faced with financial hardship due to the escalating rise in living costs compared with the rise in incomes.

"As a result, they were forced to supplement their daily expenses either through personal loans or credit cards, which then exposes them to the risk of bankruptcy due to the higher interest rates offered by these loans," he said.

Malaysians are struggling with rising cost of goods and services after Putrajaya cut subsidies for petrol and sugar as part of its subsidy rationalisation programme to tackle the government's chronic budget deficit.

Many people participated in a New Year's Eve rally at Dataran Merdeka in Kuala Lumpur to protest against the price hikes. Following widespread unhappiness over the rising cost of goods and services, Putrajaya announced early this year it had formed a cabinet committee to address the issue. – February 18, 2014.

Source: www.themalaysianinsider.com/malaysia/article/more-than-20000-expected-to-be-declared-bankrupt-in-2013-due-to-price-hikes
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answered on Apr 5, 2015 at 04:36
by   Anonymous
edited Sep 15, 2016 at 18:11
 
More than 500,000 Malaysians were declared bankrupt. What are common reasons for financial problems?

Read more about it here. Do remember to share.



Even the young go broke

04 Apr 2015

PETALING JAYA:  It's no trivial matter to be legally declared a bankrupt. To “gain” that status, you have to rake up a debt of RM30,000 or roughly the equivalent of your annual income before creditors can take you to court.

Bankruptcy proceedings are time-consuming and costly, and most creditors prefer to recover the debt through other avenues, such as seizing property and other assets. Legal action is usually the last resort.

Yet, the number of people falling into the trap is not small. In the first six months of 2014, more than 500,000 Malaysians were declared bankrupt. Alarmingly, even those aged 25 and below counted among them. Though they account for a mere 1% or 579 of the total number of new bankrupts, it is undeniable that young adults are increasingly vulnerable.

According to the Malaysian Department of Insolvency (MDI), the number of youth facing intractable debt problems has almost doubled since 2012 from a 24% dip in 2011.

According to the Financial Counselling and Credit Management Agency (AKPK), a subsidiary of Bank Negara Malaysia, the number of those in the 20-to-30 age bracket signing up for its Debt Management Programme (DMP) rose to 18,424 in the six years since it was set up. Last year alone, 1,908 young adults signed up, accounting for 15% of the total number of applicants.

The DMP is a free public service to help anyone who has lost control of his finances to get back on his feet.

Logic dictates that people only see a doctor when they fall sick. For young adults who have just started working but are already struggling with a heavy debt burden, chances are their problems have set in long before they come knocking on AKPK's door.

According to Carol Yip, a personal financial coach who heads the professional financial planning unit Abacus for Money, many local graduates are already in debt before they graduate. They own credit cards and expensive cars while they are still in university as their parents do not mind footing their bills.

Children learn little about handling finances at school or university, given that this is not a compulsory subject. Those who opt for accounting and finance courses are exposed to the basics of sound money management but three years is too short a time to master all the principles and become financially astute.

FULL STORY: theantdaily.com/Main/Even-the-young-go-broke
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answered on Jul 2, 2015 at 00:10
by   Anonymous
edited Sep 29, 2016 at 05:07
 
Frequently Asked Questions about BANKRUPTCY in Malaysia!

1. Can a bankrupt continue using his existing credit card?
A bankrupt can only use his existing credit card up to the amount of RM1000.00. If the bankrupt wishes to continue using his credit card for an amount of more than RM1000.00, he must notify the issuing bank or finance company as to the status of his bankruptcy so as to allow them to decide whether they are prepared to continue to extend the credit to the bankrupt. If the bankrupt fails to notify the issuing bank or finance company, he will be deemed to have committed an offence under the Bankruptcy Act 1967.

2. Can a bankrupt make an application to DGI to reduce the amount of debt?
The DGI has a duty to supervise the conduct of a debtor and to administer the debtor's estate. However, DGI has no power to reduce the amount of debt that has been filed by creditors. If a bankrupt intends to reduce the amount of debt for the purpose of making full settlement, he should write in or meet the officer at the particular Bank stating his intention to do so. In the event the Bank agrees to lower the amount of debt, he has to make payment in the specified amount to DGI. We will then proceed to declare the dividend to creditors.

3. Can a bankrupt make direct payment to the creditor to settle his debt?
A bankrupt is not allowed to make direct payment to the creditor and all payment has to be made through the DGI. The payment will be credited into the estate account and distributed to the creditors who have filed in Proof of Debt.

4. Can a bankrupt open a bank account or continue using his existing account?
Once person is made a bankrupt, his existing account shall be deactivated and withdrawal of money would be debarred. A bankrupt, however, may open a bank account or continue using his existing account for reasons such as crediting his salary or any profit gained provided he obtains the permission of the DGI. He would then have to make an application for permission of DGI for reactivation of the account.

The application to obtain the DGI's permission in both cases shall be made to the respective MdI branch, where his bankruptcy case is being administered.

5. Can a bankrupt transfer his property?
A bankrupt is not allowed to transfer his property to a third party once a Receiving and Adjudication Order has been entered against him. As soon as a person is declared bankrupt, any of his property shall be automatically vested upon the DGI.

6. Can a bankrupt travel overseas?
A bankrupt may not travel overseas unless with the written permission from the DGI or after obtaining a court order allowing him to do so. In order to get a written permission from the DGI, a bankrupt has to make an application by stating his intention, reasons and duration of travelling. The application form with supporting documents must be sent to the Branch that administers his case. Dedicated officers will process the application and will inform the bankrupt on the decision of his application via his preferred mode i.e e-mail, phone call or letter. The application can be downloaded in our website under 'Forms' link.

7. Can a person declare himself/herself a bankrupt if he is unable to pay his debts?
A person can make an application in court to declare himself/herself a bankrupt as allowed under section 7, Bankruptcy Act 1967. The person is required to file a petition in a High Court stating his inability to pay his debt. The procedures required to be followed are stated specifically in the Bankruptcy Act 1967 and Rules, and one can consult a solicitor to take further actions. For further information, one can contact the nearest MdI's branch for advice or MdI's Complaints Unit directly.

8. Can I remain as director of a company if I have been made a bankrupt?
An undischarged bankrupt is disqualified from acting as a director of a company pursuant to the Companies Act. If a bankrupt wishes to act as a director of a company, he/she must seek the approval of the DGI or grant of leave from the Court.
It is also important to note that except with the permission of the DGI or Court, a bankrupt is not allowed to:
(a) work in the business of a spouse, children or relative;
and
(b) enter or carry on any business, either alone or in partnership.

9. Can my parents who are bankrupts visit me in other country?
Travelling abroad is allowed only with the permission of the DGI who has been entrusted with the discretion by law. The primary purpose is to ensure all bankrupts give their utmost priority to payment of debts. That is the reason why social visit is strongly prohibited because it is assumed that such money should be used for the purpose of paying the debt. Factors such as good cooperation, compliance to rules and obligation, initiative to settle debt are utmost important in determining whether a bankrupt is allowed to travel overseas or otherwise. All documents relating to travelling overseas can be obtained in our website under 'Forms' link.

10. Can the Department of Insolvency (MdI) make a person bankrupt?
MdI does not make people bankrupt. As aforementioned, a person is made bankrupt by a court order either by an application by a creditor, or by his own application. Once a bankruptcy order is made by the court, the DGI in law will become the administrator of his estate and also to oversee his conduct towards an effective completion of his bankruptcy.

11. Do my creditors have a right to seize my properties after I have been made a bankrupt?
As a bankrupt, your assets vest in the DGI. Creditors can take no further legal proceedings against you to recover any debts incurred before your bankruptcy. Nevertheless, a secured creditor may seize and realize your property. The proceed of the sale will be used for paying off your debt, in some cases where there are balance money after paying off the debt, it will be returned back to DGI to be credited back into the estate account of the bankrupt.

12. How can a bankrupt be released from his bankruptcy status?
There are three main ways as to how a bankrupt can have his bankruptcy terminated:
(a) Making an application in court at any time for the bankruptcy order to be annulled on grounds ie debt has been paid in full or that he ought not to be made a bankrupt on some technical
grounds;
(b) Making an application in court at any time for a court discharge. This is subject to a stringent
requirement and the Insolvency Department has to put a report emphasizing among others the conduct and cooperation of the bankrupt with the department.
(c) Making an application to the DGI for a discharge under section 33A of Bankruptcy Act 1967. Such
application can only be made only if 5 years has lapsed from the date order was made upon satisfying some criteria imposed by the DGI for the exercise of his discretion. Among the factors that the DGI will take into consideration are the conduct of the bankrupt, the extent of his cooperation with us, the cause for bankruptcy, old age and infirmities etc.

13. How can I be made a bankrupt?
You can only be made a bankrupt by a court order. Nevertheless, there are two methods in which the court order may be granted i.e. either by a creditor commencing a bankruptcy proceeding against you by presenting a creditor's petition in court, or you may also voluntarily seek a court order to be made a bankrupt by presenting a debtor's petition in court.

14. How do I conduct bankruptcy search?
You may conduct an online search at our website www.insolvensi.gov.my under the 'Services' link. A fee of RM12.00 will be charged to your credit card. Please note that payment must be done via credit card only. Another method is via counter in our Headquarters Putrajaya. A fee of RM10.00 is payable via cash. You will receive the bankruptcy search result within 15 minutes.

15. How does my bankruptcy affect my current or future employment?
Bankruptcy does not prevent you from working. Nevertheless, a bankrupt working in other sectors should check whether there is any stipulation of such in his/her employment contract or other company documents. Please refer to 'RESTRICTIONS ON BANKRUPT'.

16. If I am Director of a company or a Partner in a firm and I’m adjudged a bankrupt, would it affect my position and role in the company or firm?
In such circumstances, if you wish to proceed to be in control of the management, you must seek the DGI's permission or you may obtain the court's permission. If after been declared a bankrupt and you accept an offer of such position, similar requirement applies:
(a) A bankrupt is not allowed to enter into or carry on any business either alone or in partnership, or
become a director of any company or take part in the management of any company except with
the permission of the Director General of Insolvency (DGI) or court.
(b) A bankrupt is not allowed to work in the business of a relative except with the permission of the DGI or court.
(c) A bankrupt working in other sectors shall be subject to the terms and condition stipulated in his/her employment contract and the laws related to that professions.

17. Is there a minimum amount owed for a person to be a bankrupt?
Yes, the creditor may file for bankruptcy action against you if the debt owing is more than RM 30,000.

18. Is there a possibility a person can be declared bankrupt without his knowledge?
Yes, a person could be made a bankrupt without him knowing it. This may be due to the legal document is sent to his old address; he does not update his address; does not reach him, doesn't read newspaper if the document is served by a substituted service procedure, he did not turn up in court, he doesn't bother to accept or open any legal document sent to him at his address.

As to the said procedure of notifying the judgment debtor, there are rules and procedures to be followed in varied situations. Generally, all service of court documents to make a debtor bankrupt must be personally served. For this, most creditors will rely on the most recent address in their record. This will be very much depending on the borrower or guarantor to update the particular detail. In most cases, it is shown that they failed to locate and served those people.

In that situation the law allows creditor to serve using what is called a substitute service procedure i.e by advertising in the papers and after certain days, the debtor or guarantor is deemed to have received the notification of bankruptcy.

19. Is there an automatic discharge for a bankrupt?
There is no automatic discharge of a bankrupt in Malaysia laws, irrespective of age.

Only bankrupt with a good conduct can be considered for a discharge. Good conduct means:

(a) Good co-operation as and when required by any officer of MdI;

(b) Upon being adjudged a bankrupt, he will attend to the MdI's office immediately when required to do so;

(c) Have submitted a complete Statement of Affairs within a stipulated time given by MdI;

(d) Regularity in making payments or monthly contribution;

(e) Compliance with the DGI's and Court order;

(f) Compliance with all the restrictions under section 38 of Bankruptcy Act 1967;

(g) Submitting an Income and Expenditure Statements every six months;

(h) Informing the Department of any changes of address and income;

(i) Did not make any direct payment to the creditors; and

(j) Declaration of dividend

DGI has discretion to discharge a bankrupt based on certain specific factors but must also be accompanied with factor of good conduct. The factors are:

· health problem/prolong illness (supported by medical report);

· too old (70 years old and above); and

· case administration exceed 5 years.

However, the bankrupt must have shown a good conduct prior to the suffering/ illness.

20. Since I’m a bankrupt, what will happen to my property?
All properties shall vest on the DGI except for those listed under section 48(1)(a)(ii) of the Bankruptcy Act 1967. This includes the tools of his trade and the necessary wearing apparel and bedding and other like necessaries of himself, his wife and children to a value not exceeding RM 5,000.00 in the whole. All your properties which are vested on the DGI will be sold and when completed, the proceeds shall be distributed amongst creditors.

21. What are the disqualifications of a bankrupt?
Upon the adjudication, the bankrupt is disqualified from:
(a) holding the office of a Member of Parliament;
(b) holding public office;
(c) holding certain positions in statutory bodies, registered societies or organizations;
(d) practising in certain professions;
(e) carrying on business alone or in partnership or by way of a company;
(f) working in the business of a relative;
(g) maintaining any action without the sanction of DGI other than an action for damages in respect of an injury to his person;
(h) leaving Malaysia without the previous permission of DGI or court;
(i) receiving pension or other gratuity; and
(j) enforcing his rights under certain legislation.

Read all FAQs: http://www.insolvensi.gov.my/faqs/bankruptcy
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answered on Oct 25, 2015 at 03:36
by   William Chan
Deals | Sun Sep 6, 2015 5:00pm EDT Related: BANKRUPTCY ~ from REUTERS online.

Bankruptcy among the young in Malaysia crimps consumption

KUALA LUMPUR, SEPT 7 | BY EMILY CHOW

Malaysia, which aims to become a "high-income status" nation by 2020, is seeing an increase in the number of young people grappling with higher debts than they can handle.

Gen Ys who borrow for homes, cars and other items have contributed to heavy household burdens. Bad debts at Malaysia banks are still low, but there's been a notable increase in the number of people under age 35 who have declared bankruptcy.

To the extent that financial difficulties of young people reduce personal consumption, they are another problem for Malaysia's economy on top of low commodity prices, a battered currency and a political crisis stemming from graft allegations involving Prime Minister Najib Razak, who denies wrongdoing.

Growth of private consumption has been slowing, and if that continues, Malaysia's growth rate could be hit.

"Households are accumulating debt faster than their incomes are growing, which will likely lead to repayment difficulties when the credit cycle turns," Standard & Poor's wrote in an August report.

According to S&P, Malaysia has the highest personal debt among 14 Asian economies, with the rate jumping to 88 percent of gross domestic product from around 60 percent in 2008.

Malaysia's Department of Insolvency says 5,547 individuals under age 35 were declared bankrupt last year, more than double the number in 2005, the first year for which it has published such data. Last year's number under age 25 was 635, triple the year-earlier figure.

In Malaysia, a person can be declared bankrupt if a creditor shows there's on unpaid debt of at least 30,000 ringgit. ($7,116)

Hafiz Adam, a vocational school graduate, thought the future looked bright when he took a bank loan of almost $20,000 to start a Kuala Lumpur marketing business. But it didn't last, and two years ago, age 26, he was declared bankrupt.

"I struggle to survive on my own," says Hafiz, who's now employed as a security guard and is repaying his debt - through an agreement the Department of Insolvency facilitated - as he works to lift his bankruptcy status.

LOANS FOR EDUCATION

LM, a 34-year-old mother who asked to be identified by her initials, racked up loans to support her three children and parents.

"I can't buy a low-cost flat because I cannot afford the deposit," she said.

Asked why Malaysia has seen increasing numbers of young bankrupts, the Department of Insolvency said by email that after graduation, most "are burdened with study loans. Once they start working, they need transportation and accommodation."

Many young Malaysians grew up accustomed to rapid economic growth and relaxed attitudes to debt. Banks, meanwhile, have been eager to lend to them.

"Prompted by both national policy and a desire to diversify away from corporate lending, banks heavily pursued the consumer market," said Nurhisham Hussein, chief economist at the Employees Provident Fund, adding that banks were not solely responsible.

"Consumers themselves embraced the new openness and steadily took on more debt, especially as interest rates gradually fell over the last 15 years," he added.

For Hafiz, the idea of owning a home - a goal when he started his business - is remote. "I just sleep after work because I'm tired. That's my routine."

($1 = 4.25 ringgit)

(Editing by Nicholas Owen and Richard Borsuk)
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