As of October this year, a total of 22,756 people have been statued poor citizenship because they cannot afford their loans!
According to the data released by the Malaysian Department of Insolvency from 2017 to October 2021:
22,756 people were statued poor citizenship because they could not afford personal loans
10,568 people went bankrupt because they could not afford car loans
7,043 people went bankrupt because of business loans
6,704 people went bankruptcies due to housing loans
5,409 people went bankrupt due to credit cards
According to the data for 2021, a total of 2,852 Malays were statued poor citizenship, 1,189 Chinese, 408 Indians, 402 other ethnic groups, and 12 non-Malaysian citizens.
According to age statistics, young people aged 25 to 34 are the largest bankrupt group, which is a total of 14,058 people. Once the government ends its aid projects, the number of bankruptcies in this age group is expected to skyrocket.
Now when a person owes more than RM100,000 but is unable to repay it, he can be prosecuted by his creditor and statued poor citizenship. After a person is a statued bankruptcy, the court and the government will appoint a bankruptcy director to supervise the bankrupt’s finances and use the property as much as possible to repay the debt. After being convicted of bankruptcy, you will not be allowed to go abroad unless approved by the bankruptcy director or the court.
Bank accounts of bankrupts will be frozen, except for bank accounts for monthly salary remittances. The credit card spending limit cannot exceed 1,000 ringgit. The bankruptcy director will try his best to sell the bankrupt property to repay the debt. Bankrupts cannot serve as lawyers, accountants, doctors or quantity surveyors.
