MUHAMMAD IZZAT B. HASSAN MUHAMMAD FAQIR B. AMIR MUHAMMAD IRAZZI B. MUHD ITHNIN AHMAD NABIL B. IDZHAR FAREEZ B.

Z B. AZMAN ZEIN
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 The bankruptcy process begins with a petition filed by

the debtor (most common) or on behalf of creditors (less common) the assets are used to repay a portion of outstanding debt. Upon the successful completion of bankruptcy proceedings, the debtor is relieved of the debt obligations incurred prior to filing for bankruptcy.

 Impact to individual
-not have any cash or asset .
-increase debts.

Impact to society
-aware to make a loan. -can reduce employment opportunities .

Impact to economy
effect to employment and taxes.

PETALING JAYA (Feb 19, 2013), Sinar Harian

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 between 2005 and June 2012, a total of 243,823 people

have been declared bankrupt in the country. The statistics keep going up. About 52 people are declared bankrupt every day now compared with 36 in 2007 banks are making it easier for people to get loans to buy these high-end luxury motorcycles. These are impulse buys and my concern is that when people are faced with easy credit, they tend to live beyond their means.
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 Personal loan could be a potential time bomb if we

dont intervene now when financial institutions approve loans, they should also be responsible for assisting a borrower who is facing financial difficulty. People tend to apply regarding to personal matter. Eg: marriage, start up a small business and etc. Bank should made a serious effort to assist the borrower before initiating bankruptcy proceedings. Banks should also look into the background of the borrowers who default on their loans.
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 Tend to apply housing loan because people want to

own house. Long repayment period( max 25 years) Ex: fail to repayment when there is economic downturn. People unable to pay back their loan in time. High interest over time

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 He points out that some people become bankrupt

because of unexpected incidents like a flood or downturn. Some get into financial difficulty because they have to foot high medical bills as a result of critical illness or accident victims or retrenched workers who have lost their livelihood

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 There are also cases where a good business idea did

not quite take off due to weaknesses in execution and implementation. It can be said in innovation, nine out of 10 businesses fail. Raise company capital. Decreasing in company performance.

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 you can become a bankrupt when the outstanding

sum involved is RM30000 (previously it was RM10000) or more with a default period of six months or more. only 1,284 or 6.6 per cent of the 19,575 declared bankrupt in 2012. Between January and March this year, 257 people were declared bankrupt because of credit card problems. The number was 5 per cent of the 4,925 people declared bankrupt High interest (1.5% daily)
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 Government agency that administers bankruptcy cases

and bankrupt affairs. Member of the International Association of Insolvency Regulators (IAIR). IAIR is an international body that brings together collective experiences and expertise of government insolvency regulators from jurisdictions around the world.

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 Credit card

Hire purchase
Housing loan

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 AKPK is a wholly owned subsidiary of the Bank Negara

Malaysia and is fully funded by Bank Negara Malaysia AKPK promotes financial wellness by empowering Malaysians to be financially knowledge through:
financial education, credit counseling debt management programs

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 AKPK assists retail consumers in rescheduling or

restructuring their:
housing loans, hire purchase loans personal loans

credit/charge card

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 By promoting awareness and educating the public on

how to manage their debts effectively, as well as providing counselling and especially tailored DMP to cater to financially burdened individuals, AKPK hopes to help curb the financial-related issues faced by Malaysian households today AKPKs debt management programme (DMP) assists borrowers to work out budgets that will help them meet their loan obligations and living expenses, thereby minimizing non-performing loans and foreclosure of houses
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 Up to 30 June 2012, 190,521 individuals have attended

our counseling services and from that, 77,994 customers have been enrolled into the DMP

Type of Cases Counselin g DMP

20062008 73,604 21,160

2009 36,848 16,184

2010 30,010 15,603

2011 31,710 16,910

30 June 2012 18,349 8,137

Total 190,521 77,994

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Percentage of Debt Management Programme Customers

50 45 40 35 30 25 20 15 10 5 0 44 36

30 and below
20 30 to 40 40 and Above

Customer age
30