Do you know that bankruptcy in Malaysia is very high. From 2008 – 2012 there’s increases cases of Malaysian declared as bankrupt. In 2008,there’s 13,855 bankruptcy cases and in 2012 it increase to 19,757 cases. Bankruptcy is not good as you can’t do this :-
1. Overseas Travel
– You may not travel overseas unless you obtain written permission from the Director-General of Insolvency (DGI) or a court order allowing you to do so.
2. Credit Card Limits
– Regardless of your credit card limit prior to your bankruptcy status, you can only use your credit card for up to RM1,000 when you’re a bankrupt.
– You can no longer act as Director or Management Member of a company unless you obtain permission from the DGI or the court.
4. Assets and Properties
– Your assets and properties are automatically vested upon the DGI, who bears the responsibility of sellint them and distributing the proceeds to your creditors.
5. Banking Accounts
– All your banking accounts will be frozen. You can, however open a new account or use an existing on e to credit your salary or any profit gained… provided you have the persmission of the DgI.
6. Entrepreneur’s Right
– You can no longer set up or carry on businesses alone or in partnership, and you won’t be allowed to work in the business of a relative unless you obtain permission from the Dgi or the court.
– Hold Public Office, Hold Certain Position in Statutory Bodies, Registered Societies or Organization. Hold the Office of a Member of Parliament. Receive Pension or Other Gratuity. Practise in Certain Professions. Enforce Your Rights Under Certain Legislation. Maintain Any Action Without the Sanction of the DGI, Other Than AN Action for Damages in Respect of An Ijury to Yourself
That’s some of the problem you face if you become bankrupt. So beware of this..
Source :- AKPK