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Did You Know There Were So Many Bankrupt Malaysians Under 25?

579 individuals under 25 have been declared bankrupt from January to June this year out of more than 12,000 who have filed for bankruptcy in 2014.

Cover image via nbcdfw.com

In the first six months of 2014, 579 youths under 25 have been declared bankrupt, said Nancy Shukri, Minister in the Prime Minister's Department

This trend was worrying because most of them had just started working but already had debt problems, she added.

thestar.com.my

She said that youths are spending more than they earn, thus accumulating debts from failure to repay car loans, personal and housing loans, as well as credit card payments

"This younger generation are supposed to be the next leaders. Instead, we have those who are already facing financial difficulties at a very young age," she told a press conference after opening an information programme for young people at the Home Ministry complex at Setia Tropika here yesterday.

thestar.com.my

For the past five years, the amount of youths being declared bankrupt have increased exponentially. Nearly 22,000 cases were reported last year, compared to about 13,200 in 2007.

"The number, out of the total of 12,381 individuals declared bankrupt, was an increase from 208 individuals last year," Nancy Shukri said. From January to June this year, she said, 2,491 individuals, aged 25 to 34, were also declared bankrupt and another 4,121 individuals, aged 35 and 44.

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To combat the problem, Nancy Shukri urged youths to seek advice and get early help from the Credit Counselling And Debt Management Agency as well as the Insolvency Department's organised programmes

She said the government through the Credit Counselling And Debt Management Agency and Insolvency Department organised programmes for the community, especially youths in managing their finances wisely and teach them to address bankrupcy.

themalaymailonline.com

"Based on feedback obtained from organising several programmes previously, we found that the majority of youths are not aware of the services and assistance provided by the government resulting in them being bankrupt at a young age," she said.

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So, what exactly is bankruptcy and how does it affect a person in the legal sense?

Image via iMoney.com

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