Johor Insolvency Department will release 13,700 people from bankruptcy before the end of the year

The Johor Insolvency Department is issuing certificates this year to approximately 13,700 people under the Second Chance Policy to free them from bankruptcy.

The Insolvency Act 2023 (Amended) (A1695) was amended by Juanita Mohd Said, the director of the company. This law had been in force since October 6, last year.

“Until May of this year, the Department has issued certificates to 7,631 people, which is equal to 56% the total number of active cases that we administer.

She said this in a news conference following the roadshow of Johor Insolvency Department held at Felda Sungai Mas, Tuesday (June 11, 2016).

Juanita said that the bankruptcy department currently manages more than 26,000. Some of these cases date back to the 1970s.

“About 40 percent of those who are declared bankrupt have an age between 35 and 45. They are often bankrupt because of their extravagant, expensive lifestyle.

She said that many people declared bankrupt because they were unable to pay back their car and personal loans from financial institutions.

She said that many people, particularly business owners, had been financially impacted by the Covid-19 pandemic. This caused them to go bankrupt.

“This is the reason why the government amended the Act to release individuals from bankruptcy if their debts are less than RM100,000.

She said that before the amendment was implemented, new cases were recorded at a rate of four figures per year. As of May, this year, she reported 400 new cases.

Juanita said that even though individuals were removed from the bankruptcy list they should still pay their debts to creditors.

“I’d like to congratulate those who have received this policy. The second chance policy should be viewed as a valuable life lesson.

She added, “They must work to pay off any debts that remain, and help us educate the public about the effects of being bankrupt.”

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