PENGERANG: The Johor Insolvency Department will issue certificates to some 13,700 individuals this year under the second chance policy to release them from their bankruptcy status.
Its director Juanita Mohd Said stated that this follows amendments made to the Insolvency Act (Amended) 2023 (A1695), which had been enforced since Oct 6 last year.
“Until May this year, the department has issued such certificates to a total of 7,631 individuals, which is equivalent to 56% of the total active cases we are administering.
"We have set a target of giving out second chance policy certificates to 13,700 individuals by this year,” she said in a press conference after attending the Johor Insolvency Department roadshow held at Felda Sungai Mas on Tuesday (June 11).
Juanita added that as of now, there were more than 26,000 active bankruptcy cases managed by the department, some dating back to the 1970s.
"About 40% of those declared bankrupt are between the ages of 35 and 45 years. Many of them are bankrupt due to their expensive, lavish lifestyle.
"Unable to service their personal and car loans taken from financial institutions are the main reasons why many people have been declared bankrupt," she said.
She also mentioned that post-Covid-19 pandemic, many individuals, especially business owners, were financially affected, causing them to become bankrupt as well.
"This is why the government made amendments to the Act, which release individuals from their bankruptcy status if their debt is less than RM100,000.
"Prior to the amendment being enforced, we recorded new cases averaging four figures on a yearly basis, but as of May this year, there are about 400 new cases," she said.
Juanita also said that despite being taken off the bankruptcy list, individuals who still had debts should continue to pay them to their respective creditors.
"I would like to congratulate the recipients of this policy. They should take the benefit of being granted the second chance policy as a valuable lesson in their lives.
"They must continue to work towards paying off whatever debts remain and help us, the department, to educate the public on the effects of being a bankrupt individual," she added.
