I'm 25 years old and I'm bankrupt.

No, it isn’t because I owe the bank with credit cards debt or personal loan.

Here’s a backstory. I was 21 when my parents decided to put my name as one of the directors for their companies. They also took some personal loan from a bank to push business (invest in projects, events etc). By 23, I had a company under my name, loans under the company’s name and personal loan under my name.

By 24, the business went down extremely bad. No more clients. The worst downturn was when the company was legally sued by one of their clients. Without a black and white evidence from our side (my parents were naive when it comes to this, they never expected this kind of unfortunate event would ever happen to their business) we lost the case. With business going extremely bad, we barely had any money to pay for a better lawyer.
Take note that when all of this happened, I was just a student who is trying her best to finish her degree with honour. I wasn't directly involved in any of my parents’ business matter nor do I get to enjoy the benefit of being one for the director.

The legal damage was so huge, there’s no way that our family could pay. I just graduated from my college degree and started my career with only RM2500 pay per month. The legal damage was about RM60k. This doesn’t include the personal loan that was under my name that was left unpaid. Business wasn’t getting any better; my brother had to drop out of college, and started his own burger stall for a living.

My family had to move to my parent's kampung since living in the city is just too expensive, living me behind as I chose to stay and continue working at my current company. I barely have any savings now; I couldn’t even afford to get any insurance. I was living from paycheque to paycheque when I found out a few months ago my bank accounts went frozen due to direct order from the insolvency. That’s when I found out I am officially bankrupt.

I’m 25, never had any credit card or student loan. Personal loan was made by parents (with my consent of course, but I was too naive to figure what were the risks), and a business legal matter that I wasn’t even a part of (except for the fact that my name was listed as one of the directors).

I’ve talked to my parents about this but they asked me to give them some time to handle it even it is clear that we are basically living in poverty and survive from what they could get from the burger stall business (their business just went down the drain and new project is almost non-existence). Part of me wanted to go to insolvency and discuss what could be done, how do I get out of this. But part of me knew I could barely pay back with the amount I earn monthly and all my other financial commitments (car loan, house rent, groceries, gas, bills)

I just don’t know what to do, all I want is to clear my name but it wasn’t even my “fault” in the first place that made me fall into this situation.

With so much humility, I ask for some financial guidance and advice on how do I get out of this.
My dream was to really continue my master degree abroad (as the course I'm planning to take isn't in the country) but with my current situation, it looks like its close to impossible.

Thank you for any advise and I'm sorry for the long post.

have you consult with AKPK?

I feel sorry for you...really. However, I would like to know how did you manage to get a car loan when you were already officially bankrupt?

With your bank account frozen, how is your salary payment affected?

Normally under these circumstances you can request your employer to issue an open cheque to you where you can cash your salary over the counter.

You can also go to the insolvency department and meet the OA and ask them for advise.

There is a provision where you can request for your bankrupt status to be reviewed after 7 years but there are certain conditions to be met first. the OA can tell you more.

All the best to you.

+1

The car loan was under the bankrupt company's (before it went bankrupt). And I still continue paying it, as there's no notice from the bank that I couldn't continue with the hire purchase.

well, wish u all the best to settle up the debt...

I've talked to the CFO and HR of the company I'm currently working with, and they've agreed to give me cash cheque for my monthly salary until I could resolve on this matter..

I was planning to visit JIM and to find a way to handle this, but I would like to think I'm still young and just to scared to face it alone.

And thats why I am asking for some guidance here at LYN..

Thank you for your reply. I'll ask the OA about the re-view of bankrupt status.

ur total debt? RM60K it is not actually a big sum for those who do business for project/event.
how come no saving/cash at all if you/parent are doing big business
they way you described, it sound like the business went down in few months after setting up.

if you are not trolling, best is to get financial aid from relatives if they are doing good.

I have not. I'm confused as to which should I get more consultation from, or should I go straight to JIM.

Thank you. I'm aware of me being banned from going out to oversea. Hence thats why I'm asking for guidance if there's any way I could resolve this sooner so that I could go abroad for my study.

The law states that you need to give up your assets and you cannot go abroad.
Your car may not be your asset yet.
Looking at your predicament, I suggest you have only ONE WAY - that is AKPK.
Pay off the damn 60K ASAP and go back to court to declare yourself not bankrupt.

Once you are out of this hell....you will realise how strong you really are.
God put you through this because you are actually a very strong person.
Go ahead work, survive and live in the glory of overcoming an enormous failure.

once you declared bankrupt there is no turn back.

It could be more, I'm not entirely sure whats the amount like (plus all the legal fees and whatnot). The company was into Wedding Planner & Consultation. It's just a small business, but was doing well until the legal sue came in.
Yes, we dont have any savings to be honest, my parents weren't a great financial planner (Dad is also a bankrup, Mum's credit score is terribly bad), that's why we ended up to where we are now.

Relatives are doing good, but none of them could actually help me through clearing the debt that has cause the bankruptcy.

This post has been edited by NeedGuidance: Aug 7 2014, 12:52 PM

Lesson to all : Do not put your name if you are managing it! And do not be guarantor for some relative's son taking up study loans and what-not.

Want to giv u some hot tips to earn some money also cannot now.

cuz ur name blacklisted.. cant have trading acc

TS, i believe your angel aka saver is here, the tips is good.

I'm a still a little confuse of which should I go first, JIM or AKPK.

"Go ahead work, survive and live in the glory of overcoming an enormous failure."
Thank you so much for this. Really is something I needed to hear.

Any expenses you can cut down on? do you need to rent a whole house? do you really need a car?


This post has been edited by wodenus: Aug 7 2014, 02:55 PM

Renting a room now to be precise. Yes I really do need my car, to commute to work, unfortunately..