Over 1,400 bankrupts in northern Sarawak get second chance from Insolvency Dept

MIRI (July 17): A total of 1,482 bankrupts in northern Sarawak have been granted relief through the Second Chance Policy (SCP) in the first half of the year.

Malaysian Department of Insolvency (MdI) assistant director Lau Shavin said the individuals discharged are from Bintulu, Miri, and Limbang divisions, which come under the jurisdiction of the department’s Miri branch.

The branch is currently handling 3,686 active bankruptcy cases.

Lau said personal loan and hire-purchase payment defaults are the main cause of bankruptcies registered by Miri branch, where loans for agricultural projects in rural areas are also substantial.

She explained that SCP provides relief to individuals declared bankrupt within a year of the enforcement of the Insolvency (Amendment) Act 2023 [A1605], which came into effect on Oct 6, 2023.

The initiative offers bankrupts the opportunity to rebuild their lives despite their bankruptcy status and the department is reaching out to those yet to benefit from the initiative.

“Come to our office or head to your nearest branch if your case is in Miri and you are in Peninsular Malaysia, or visit our website to submit your application for the Director-General of Insolvency discharge certificate,” she said in an interview here today.

“Those declared bankrupt faced difficulties in opening bank accounts and travelling out of the country, and this affects those who need to travel by road through Brunei.”

She explained that for discharge under the small debts category, the amount must not exceed RM50,000 and the bankruptcy declaration must be over five years, while applicants need to be 40 years and below as well as free from other bankruptcy court proceedings.

The Second Chance Policy is a government initiative aimed at safeguarding the interests of individuals with small-scale debts by releasing them from bankruptcy through specific conditions.

Starting this year, it was extended to individuals aged 40 and below with debts not exceeding RM200,000, and bankruptcy discharge certificates are issued to those who have shared their plans after being released from bankruptcy under this policy.

Applicants are required to fill in the form in person at the department or online via www.mdi.gov.my.

MdI is actively conducting the 2024 Insolvency Department Outreach Programme nationwide, especially in rural areas, to provide information about the SCP.