Naivete and peer pressure lead to bankruptcy


  • Nation
  • Wednesday, 13 Dec 2017

PETALING JAYA: Sabrina Abdul­lah (not her real name) was 27 and only wanted to help her father when she agreed to become a guarantor for a car loan a few years ago.

She was earning merely about RM1,900 per month as a salesgirl at a shopping mall. When her father stopped paying the car instalments, she ended up in hot water – she had to fork out more than RM1,000 per month.

The banks went looking for her instead of her father and she received letters asking her to pay the car instalment.

“How could I afford to pay my utilities, rent and food if I had to pay the instalment to the banks? This is sad. I did not have anything to do with the car.

“They finally declared me bankrupt and I have really struggled to live since then,” she said.

She said she was glad to hear that the Insolvency Department has come up with initiatives to clear her name as a bankrupt.

“I thought I will remain a bankrupt forever. I do not make much money but I think I will pay a monthly instalment to the creditors,” she said.

It was reported that the voluntary arrangement under the Insolvency Act 1967 gives those who are at risk of being declared bankrupt, an opportunity to settle their debt without bankruptcy proceedings.

Meanwhile, Chong, 29, took a loan to buy a car when she started working as she wanted to be like her peers.

“I needed something to match my lifestyle. I am staying in the Klang Valley and most of my friends drive expensive cars.

“I wanted to fit in. I was struggling to pay for my previous education loan and credit cards. After two years, I could not afford it any more.

“The banks repossessed the car and I was declared a bankrupt.

“I hope I can clear my name. It has been very difficult for me financially due to my previous debts,” she said.


   

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