Deputy Minister in the Prime Minister's Department Datuk Liew Vui Keong told the House yesterday that the Malaysian Insolvency Department had been tasked to conduct reforms on insolvency laws to reduce people's burden.He said this when replying to Senator Datuk Syed Ibrahim Kader on whether the government planned to change the limit as the amount was too low and many people were trapped by it.Liew said that based on records by the department, there were 85,175 cases of bankruptcy between 2005 and March 2012.From that amount, 20,374 (23.9 per cent) of them were workers in the private sector while 10,203 (12 per cent) of them were business operators.Another 7,134 (8.4 per cent) people were self-employed, 2,482 (2.9 per cent) cases involved professionals, 2,345 (2.8 per cent) government staff and 2,300 (2.7 per cent) unemployed people.The smaller groups comprised 535 government retirees, 128 from the entertainment industry, 139 (0.2 per cent) students, 36 sportsmen while those who were categorised under 'others' or with 'no information' made up the balance of 39,499 (46.4 per cent) cases.He said that the biggest cause of bankruptcy was for failing to repay vehicle hire-purchase loans which amounted to 21,796 (25.59 per cent) cases followed by personal loans with 12,547 (14.73 per cent) cases and housing loans with 12,098 (14.2 per cent) cases.Other causes of bankruptcy included business and corporate loans, guarantors,...
Bankruptcy Threshold May Be Raised
GEORGE TOWN: The government plans to increase the minimum bankruptcy threshold from RM30,000 to RM50,000 as part of its reforms on insolvency laws. With the new limit, a person can only be declared a bankrupt if his debts are above RM50,000.
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