SANDAKAN: Family members of deceased insolvents have been urged to come forward and update as well as report their status at the Malaysian Department of Insolvency (MDI).
“The numbers of deceased insolvents contribute most to the MDI insolvents’ statistics and it is difficult for us to trace them,” said Minister in the Prime Minister’s Department, Datuk Liew Vui Keong.
The De Facto Law Minister during a luncheon with MDI Sandakan staff at Sabah Hotel here, recently said to date, a total of 1,850 bankruptcy cases have been reported in the district.
About 6,000 cases in Tawau whereas a total of 40,000 bankruptcy cases were reported in other districts and Kota Kinabalu.
According to Liew, 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 showed that most individuals declared a 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 said.
“He or she also cannot be part of any government or company’s management,” he added.
Liew then urged individuals who are declared broke to come to MDI’s nearest office to handle their assets as the department is tasked to administer bankrupt individuals.
However, he said the government provides exception to social loan guarantors, disabled individuals and those suffering from chronic illness (with valid medical report) from being declared bankruptcy.
“These individuals can come forward to MDI so that they (MDI) can appeal to the court and discharge them from bankruptcy,” he added.-SabahNewsToday