THE Consumers Association of Penang (CAP) is concerned that the January to April 2022 bankruptcy statistics revealed recently are just the tip of an iceberg of bankruptcy in this country.
This is because of the Insolvency (Amendment) Act 2020 that took effect on Sept 1, 2021. With the amendment, a creditor may file for bankruptcy action against a debtor if the debt amounts to RM100,000. Previously, the threshold was RM50,000. This means that if a debt does not exceed RM100,000, the creditor is unable to file a bankruptcy action.
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