SANDAKAN: Family members of deceased bankrupts should come forward to update their status at the Malaysian Department of Insolvency (MDI).
“Deceased bankrupts contributed most to the MDI insolvents’ statistics,” said Minister in the Prime Minister’s Department Minister Datuk Liew Vui Keong during a luncheon event with MDI staff here.
To date, there are a total of 1,850 bankruptcy cases reported in the district and about 6,000 cases in Tawau whereas a total of 40,000 bankruptcy cases are reported within Sabah.
Liew said the highest number of bankruptcies involved loan guarantors as well as those who had failed to settle vehicle hire purchase loans.
“This is followed by those who had failed to settle their housing loans, student loans, income tax and personal loans.”
“Statistics also show that most individuals are declared bankrupt because they did not transfer their vehicle ownership and the vehicle’s new owner failed to pay the monthly loan,” he added.
A bankrupt will be barred from contesting in elections and may not be able to open a bank account or apply for a loan.
“He or she also cannot be part of any government or company’s management,” he added.
Liew urged those identified to come to MDI’s nearest office to handle their assets as the department was tasked to administer bankrupt individuals.
However, he said the government gives exceptions to social loan guarantors, disabled individuals and those who were suffering from chronic illness (with valid medical reports) from being declared bankrupt.
“These individuals can come forward so that MDI can appeal to the court and discharge them from bankruptcy to lessen their burden,” he added.