Selangor records highest number of bankrupts

OVER 290,000 people have been declared bankrupt as of August, with Selangor recording the highest number. Minister in the Prime Minister’s Department Datuk Seri Azalina Othman Said said 296,712 individuals were declared bankrupt overall, with 24.3% (72,114) of those in Selangor.

The second highest number is in Johor with 50,225 cases, followed by the Federal Territory (46,377), while Perlis had the lowest with 1,037.

“The amendments made to the Bankruptcy (Amendment) Act came into effect this October. The Department of Insolvency is in the process of compiling all the data.

“Those declared bankrupt who are disabled, have chronic illnesses, were social guarantors and heirs of deceased bankrupts can apply to be discharged under Section 33A,” she said in reply to Sim Tong Him (IndKota Melaka).

Azalina also said those declared bankrupt after the Act was in place should file their statements which provided automatic discharge under Section 33C of the Act. She said all parties, including banks, always cooperated with the Government to ensure fairness and assured that the management of bankruptcy processes was done smoothly.

Azalina said there were several other methods on how a person could be discharged from being bankrupt. These included cancellation under Section 105 after the person had settled the debts in full, and discharge by the court under Section 33 after a suitable dividend amount is paid to the creditor.

“I attended a consumers’ forum recently where the Deputy Prime Minister suggested that the Insolvency Department hold a roundtable with banking associations and relevant parties to look for ways to reduce the number of people being declared bankrupt.

“The department will implement this suggestion soon,” she said.