Long wait out of bankruptcy

IF you are a parent, you would be very happy and proud of your child if he fulfils his responsibilities in life, including paying back what he owes to his creditors. Heavens forbid, but if your child were to be declared bankrupt, you would do everything within your means to help him get out of the situation.

The Insolvency Department of Malaysia is vested with “parental” authority to help citizens who are responsible enough to settle whatever debts they have incurred in the past.

Nobody wants to be declared bankrupt. The victim is already struggling to clear his/her debt as soon as possible so that he/she could be free of this burden.

I would not be wrong in thinking that very few Malaysians know how the Insolvency Department works.

I am dealing with this department for the first time, acting on behalf of my niece who is living in Australia. She is seeking to be discharged from bankruptcy and her case is straightforward as the debt has been settled in full.

I am wondering why the Insolvency Department is taking so long to release the amount owing to her creditor. After more than three months upon settling the debt with the receipt of payment, the release amount has yet to be paid to the creditor. Moreover, my request and appeal letters for speedy action so that my niece would be able to visit her ailing father, who was in his 80s, were not considered. As a result, she wasn’t able to reconcile with her father as he passed away a week ago. I just do not understand why the department is so slow to act. Is there a time frame for the payment to be released? Perhaps the Pakatan Harapan government should review the standard operating procedures of the Insolvency Department.

I was prompted to write the appeal letters to the department after I found out that some cases took nine months to more than a year to process after the debt is fully settled. I accept that there are cases that are complicated and may take much longer to settle, but staff of the Insolvency Department should be experienced and smart enough to identify genuine cases that should be processed speedily. My quest to get my niece discharged from bankruptcy has not been successful so far due to this lackadaisical attitude, and I am disappointed and discouraged.

I hope that by sharing my experience, the department would realise that it needs to improve its operating procedures.

It would be no surprise in this very competitive world that a number of young adults would land in bankruptcy and are struggling to correct their mistakes and regain their status as free citizens to carry on with their life.

They are waiting to be free but are unable to voice their needs under a myriad of negative emotions like shame, self-condemnation and helplessness. They are helpless because of the stigma of being a bankrupt, so they prefer to wait and suffer in silence.

No wonder many young adults are disappointed and disillusioned with government departments that are not serving the nation’s citizens.

The Insolvency Department should be a beacon of hope and show compassion and kindness to those who are sincere in rebuilding their lives and contributing to the nation’s economy.

DEMORALIZED Kuala Lumpur