Not so easy for declaration of bankruptcy
If someone is unable to pay their debts, how much do they need to owe before the bankruptcy procedure against them could start? Did the bankruptcy case in Malaysia increase during the MCO period in Malaysia? By the way, property is NOT the main reason for bankruptcy cases yeah. It’s just one of the reasons. Here’s that comparison to understand more. Malaysia bankruptcy cases during MCO period hit over 11,000 people. Is this high or is this low?
It seems that the government is again thinking of reviewing the Malaysia’s current bankruptcy threshold.
Article in nst.com.my Prime Minister Datuk Seri Ismail Sabri Yaakob said the government will review the country’s bankruptcy threshold because of rising bankruptcy cases among the youth. He said that it’s possible that the government will reintroduce the government’s previous action in 2020 during the Covid-19 pandemic, where the Malaysian Department of Insolvency (MDI) increased the bankruptcy threshold to RM100,000 from RM50,000.
He said, “Looking at how things are now, the threshold will be reviewed and God willing I will discuss this with the Minister in the Prime Minister’s Department (Parliament and Law) to look into the relevant Act.” He added, “I will also meet the Bank Negara Governor to see what can be done from the legal perspective.” Do refer here for all the numbers yeah. Full article here: Article in nst.com.my
If inflation is the issue…
Inflation has often been said to be the reason for increase in cost of living. The cost of living is meanwhile said to be the reason for high debts. By the way, inflation does not affect just a small group of people. Meanwhile the increase of the cost of living also does not affect just a small group of people yeah. In other words, if due to these reasons, the bankruptcy cases do increase, then we need to get to the root of the issue and not just taking care of the symptoms. Perhaps financial management is the real issue.
Well, I think we just need to wait for the next update then.
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