35pc bankruptcy cases resolved via Dept's help
Published on: Saturday, January 31, 2015
Labuan: Thirty-five per cent of bankruptcy cases had been resolved through the assistance of the Malaysian Department of Insolvency (MDI). Out of a total of 144,474 such cases, 50,242 had been discharged and free from insolvency, since 2007.To encourage more people to come forward to seek help from government agencies such as MDI, Credit Management Advisory Department and Amanah Raya Bhd (ARB) have come together to hold roadshows throughout the country under the public outreach programme under the auspices of the Law Ministry in the PM's Department.Law Minister Nancy Shukri said public engagement to enlighten the people on cash and credit management had seen results with the percentage of discharge cases and to prevent people from being mired in debts.ADVERTISEMENT "Our outreach forums have exposed more than a million people throughout the country. This exposure has given them an avenue to seek credit management counseling."It is worth reminding that MDI does not bankrupt anyone. A person can only be declared bankrupt by the courts, either by the creditor or voluntarily by the individual," she said.A majority of the bankruptcies were due to the debtors keeping quiet.The Minister advised debtors to cooperate with MDI as problems could be resolved and handled, taking into consideration of issues. ADVERTISEMENT "MDI is not to add to the problems but to seek ways to help," she stressed.A total of 350 people attended a one-day forum on smart management of cash, organised by Member of Parliament Datuk Rozman Isli, with a three-member panel comprising the Chief of Sabah Counselling and Credit Management, Idris Kassim, ARB Director, Usman Hamid, and MDI Deputy Director, Rullizah Majid.
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According to Ruhillah, 10,567 bankruptcy petitions were in the High Courts of KK, Tawau and Sandakan, out of a total of 265,564 cases nationwide.Labuan has less than 800 cases, while KK's is highest with 7,746, Tawau 1,625 and Sandakan 1,196.The bulk of the bankruptcy cases were related to hire purchase and credit card debts. Stay up-to-date by following Daily Express’s Telegram channel.
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Ruhillah warned those who lost their ICs to lodge and keep their police reports as the repercussion of being used by third party could render them insolvent.ARB's Usman stressed the importance of making a will so that their beneficiaries could inherit without the encumbrances of unsettled debts.