If you’re not aware already, here are some restrictions imposed by the government if you’re bankrupt:
1. Lose power on all assets
When you are declared bankrupt, you will be assigned to a Director General of Insolvency (DGI). DGI will oversee all of the individual's assets and manage them to pay off the remaining debts - no matter if it’s a car, a house, or jewellery.2. Cannot travel overseas!
Another thing a bankrupt can’t do is leave the country, including overseas travel. There are some exceptions, but the options are getting written authorisation from DGI or having a court order allowing the individual to go outside. Till then, stay inside Malaysia!
3. Cannot withdraw cash & credit limit of RM1,000
Walao, this one really serious! Bankrupts will have their existing bank accounts terminated, and cannot withdraw any money from their bank accounts. AND… He or she is not allowed to spend more than RM1,000 on their credit card or get more than RM1,000 in credit from any creditor. Yikes!
4. Can’t run any business
Bad news! If one thought he or she can pay off their debts faster by running a business, they’re WRONG! Bankrupts are legally barred from managing, creating, or marketing a limited business without first receiving court authorisation. Bankrupts can only create an income through employment, but even that is limited.
5. Restriction in employment
A bankrupt will be unable to practice in some professions where professional groups or licensing bodies have placed limitations. This includes professions such as lawyers, quantity surveyors, accountants, and doctors. Though the list seems short, you’ll be shocked at how many job opportunities one can be rejected. Companies and organisations normally turn down candidates who have a history of bankruptcies.
Yikes, better check your bankruptcy status before it’s too late, right? But, how do you do that?
We recommend anyone with any type of loan go through bankruptcy check. Especially if you have histories of continuous overdue payments. Even if you are 1,000% sure you are not near to being bankrupt, it is best to check your status once in a while.
How to do that? You can check your status online through the bankruptcy guidelines through the Malaysian Department of Insolvency official portal HERE.
So, what can we get from this?
Basically, do not take loans beyond your capacity. If you are planning on taking a second loan or the third (or the fourth…), make sure it’s the loan you are able to commit.
The best way is to do your own research beforehand. You can go contact each bank for it, but if you want a simpler solution, you can use our Loanstreet tool to compare the profit rates all in one click.
So, now that you know this, share this with your travel pals! We don’t want anyone being held up by the “abang polis” at the airport… right?
*The above article is intended for informational purposes only. Loanstreet accepts no responsibility for loss that may arise from reliance on information contained in the article.
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