KUALA LUMPUR, Tuesday 14 December 2010 (Bernama) -- A total of 87,583 individuals were declared bankrupt between 2005 and October this year, with 4,651 or 5.1% of them due to unpaid credit card debts.
In light of this, the government will be discussing with Bank Negara on finding a solution to the problem of high interest rates imposed on credit card users, resulting in many being unable to settle their outstanding balance.
Deputy Minister in the Prime Minster's Department Datuk Liew Vui Keong said a solution was necessary as the number of credit card users declared bankrupt was worrying, with the majority of them being young people.
Liew was replying to a supplementary question on the issue from Datuk Mohamad Aziz (BN-Sri Gading) in the Dewan Rakyat today.
Mohamad wanted to know how the government was going to tackle the problem where according to him, about 23% of credit card users among the younger generation had been declared bankrupt due to their inability to pay up their debts as the interest rates were high at between 12 and 18%.
Liew said the government did not have a specific method to solve the issue but to avoid becoming a bankrupt, a person needed to wisely manage his or her own finances.
On the proposal to combine the Insolvency Act, Bankruptcy Act and Companies Act, he said it would be an ideal process so as to give individuals declared bankrupt a second chance to do business.
"However, the legal process pertaining to the proposal is still being studied," he said in reply to a question from Saifuddin Nasution Ismail (PKR-Machang).
Liew said individuals declared bankrupt could still go overseas to perform the Haj or for medical treatment if they obtained approval from the Insolvency director-general.
"Those declared bankrupt can also free themselves from the status by applying to the court before the application is scrutinised by the Insolvency Department which will decide whether to support or reject the application.
"Those who want to perform the Haj, can also apply to the Insolvency director-general to go abroad...the government will not stop them if they follow the legal procedures," he said.
No comments:
Post a Comment