The Bankruptcy (Amendment) Bill 2016, which gives a second chance to individuals who have been declared bankrupt, will be brought to the Cabinet next week.
Minister in the Prime Minister’s Department Azalina Othman Said said she was optimistic that the bill would be tabled at the Dewan Rakyat at the latest in March next year.
She said among the matters being given attention was the proposal to amend Section 33A of the Bankruptcy Act 1967 in relation to a bankruptcy discharge which would give a second chance to those who were declared bankrupt to begin a new life.
The bill would also focus on social guarantor, those who are the guarantors for education grants, hire-purchase of vehicles and housing loans, she said.
“In addition, also proposed is the bankruptcy amount which is to be increased from RM30,000 to RM50,000,” she told a press conference at the Parliament lobby here today.
Azalina said the amendment also involved a proposal to shorten the bankruptcy period from five to three years.
She said the five-year period was too long if compared to other countries such as Canada (nine months), Thailand (three years), United Kingdom (12 months) and Australia (three years).
According to the Insolvency Department statistics, a total of 97,215 people have been declared bankrupt since 2012 until September this year with Selangor being the highest with 27,269 people.
Azalina said the hire-purchase of vehicles was the major cause of bankruptcy with 33,967 people being declared bankrupt whose ages ranged between 35 and 44.