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Can bankruptcy help me settle my debts?

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asked on Aug 6, 2020 at 16:36
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edited on May 9, 2021 at 18:22
 
I currently have several loans, specifically one quite substantial to me, RM40k with AEON Credit (approximately 2/3 paid), and two credit card cash loans with Citibank and UOB both for RM10k.

I work in customer service for AirAsia. Thankfully I am able to retain my employment despite Covid-19 pandemic. Unfortunately, my earnings have been reduced approximately 75% due to lack of work, and thus reducing my allowance earnings, the major part of my salary.

Citibank has provided me with a solution with a 6-month delay for payment, to resume by next year.

UOB officers said they are trying on my behalf to apply for a similar program, for which I am not sure whether has been approved or not. AEON Credit has been bluntly avoiding discussing my payment capability, and simply ask that I make the monthly payments, almost the total of the salary. Obviously, I am unable to do so in order to survive.

My question is, can bankruptcy make my position better in paying these debts? I apologize if my question is too lengthy as I am trying to provide as much information as possible.

Thank you in advance.
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3 Answers

answered on Aug 6, 2020 at 18:16
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edited May 9, 2021 at 18:24
 


@AbdulM

You are too young to even to think of bankruptcy.

Go approach AKPK for debt restructuring.

Link: ]http://www.sumbermalaysia.com/2018/08/bantuan-agensi-kaunseling-pengurusan.html
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answered on Aug 7, 2020 at 10:53
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edited May 9, 2021 at 18:24
 
Thank you @jeff005 for the reply and guidance.
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answered on Aug 7, 2020 at 12:28
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edited May 9, 2021 at 18:26
 


@AbdulM

Thank you very much to your "Thank You".

Further Comments:

1. You are too young to walk the bankruptcy way. Even for self declare bankruptcy.

2. You are in gainful employment with a corporate company which can result in a successful application under the AKPK DMP (Debt Management Program). Do keep it that way.

3. Depending on the service sector in your jobscope in the company, read carefully the Company's Handbook for Employees. There could be a clause whereby a bankruptcy status "may" result in the termination of your contract with the company. Being jobless in the current Covid-19 pandemic will sure to add misery to your current financial commitments.

The basic answer to your query "Can bankruptcy help settle my debts " is (personal opinion) that it may cause other unwarranted issues. Your credit rating may drop to zero. It may take more years to rebuild your credit worthiness even after a discharge from bankruptcy.

Approach AKPK first..
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