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.

you can either craw yourself out of the hell hole your parent dug you into

OR

Find someone to get married ! the hell with principle and stuff like that. 

AKPK option is only viable if you haven't been declared as bankrupt. If you have been declared bankrupt, then JIM is the only place that you can go.

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

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

long story short, you are in deep shit and u need to slowly crawl out of it

clearly you know who's at fault, but they are parents, so we can't do much

if you are declared bankrupt, your accounts will be frozen. how on earth did u receive your pay checks?

you need help from AKPK so they will step in and stop the banks from harassing you by charging you enormous inteest for the amount "you" defaulted

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

Where are you renting room right now? And what are your expenses for your car? i.e. petrol, maintenance,time to travel?

Consider moving closer to where you work, that way you won't have to rely on your car to transport you around. Assuming you work in Klang Valley, the public transport would be your best bet.

Since your car is your only tangible value, have a relative or someone you know will help to buy it off if possible (i'm aware it's bought under the company)

Perhaps you can consider one of these two things;

1) speak to your CFO to see if there is any other assignment that can earn you extra income (if not within the organisation, other companies may be able to offer something on the side. CFO's would know where to help you look)

2) Depending on whether your current status is with the employment dept (i.e. bankrupt), try sourcing for a higher paying job
Lastly, talk to AKPK. Any one of the consultants should be able to guide you on where you can go from there.

before anyone think that JIM is a person's name

JIM = Jabatan Insolvensi Malaysia

mr.lonely, you've crawled through that hole. respect bro

when you are bankrupt, jim is the answer .. not akpk or even lawyer .. jim will help u, trust me .. u know what, when i try to get release, outside lawyer charge me 3k, but jim only rm10 .. so dont afraid with jim ... they will help u to go through this as long u follow the rules and inform them accordingly on any changes ...

actually, before they served u the notice, u have the chance to appeal that time, so if the judge agree, u no need to be bankrupt ...

same as my case, i didnt get the notice or summon, all is under my parents knowledge, so they hide it from me .. at the end .. my name get the problem.

i think TS will get a favorable appeal decision as entirely not her doing, her name was just used, and I'm not here to judge your parents, but ask them go work from bottom again and help to clear it out asap, crash and burn ain't easy to recover over the short term.

be strong ... and good luck in future undertakings