Insolvency Dept data shows 60pc bankrupts between age 25-44; personal loan is top reason
The official data also showed that nearly 42 per cent of those who declared bankruptcy in the last four-and-a-half years cited personal loans as a factor leading to bankruptcy, followed by nearly 15 per cent who listed vehicle purchase as a factor, and more than 13 per cent declaring bankruptcy because of a business loan.
“The fact that many of them fall into bankruptcy due to personal loans is something that is worrying because we have no idea why they have taken loans; they could have spent the money on something that was not a necessity.
The highest number of bankruptcy declarations up to May 2022 comes from Selangor with 72,608 cases, followed by the three Federal Territories of Kuala Lumpur, Putrajaya and Labuan combined (46,876) and Johor (32,441).
- 05- 26- 2022 11:40 AM
RECENTLY, the Malaysian Department of Insolvency (MDI) has revealed that there are a total of 287,411 individuals in the country have been declared bankrupt as of March this year.
According to Kosmo, most of them were forced to declare bankrupt for failing to clear loan debts due to insufficient funds. Unfortunately, most of them are young individuals who are still working.
Their statistics showed that workers from the private sector and businessmen are the group of people with the most bankruptcy reported. They are aged between 35 and 44 years old.
Speaking to Kosmo, an officer from MDI said personal loans, car loans, and business loans are among the major contributing factor to bankruptcy. Most attempted to get the cash immediately by getting personal loans for multiple reasons.
*The following article has only 4 top reasons rather than 5.
5 Ways To Get Yourself Into Bankruptcy
Updated 17 Nov 2021 – By Sabrina Heng & Nisya Aziz
Let’s take a look at what are some of the top reasons why people went into bankruptcy.
1. Cannot maintain credit cards’s debts
2. Spending money like kayangan people.
3. Unforeseen medical bills
4. Buying a car that’s over your budget