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.

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.

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.

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.

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

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.

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

I'm sorry I couldn't be more precise when it comes to the exact amount of loans and the amount that cause the company to be declared as bankrupt.

1. Personal loan is below 30k, but with the outstanding penalties and interest, up to now I couldn't give you the exact amount. This personal loan was taken for business investment, more to buy stuff for the company and what not.
2. Its Enterprise
3. Our parents named me and my brother (aged 24) as the directors. And yes he's declared bankrupt too, dropped out of college and is now selling burger to feed the whole family (my parents are helping him with the burger business).
4. No I don't borrow any money from the company.

Yes the debt is more than RM30k. The other party is an individual, and was a client of the company. Perhaps their motive is to bring my parents down (I honestly dont have the details as what really happened between them), but unfortunately the company was under mine and my brother's name.

Yes, my employer is giving me cash cheque for my monthly salary, as I've made them aware of my current financial situation.

Yes, I only realized that I was declared bankrupt when I found out all my bank accounts went frozen..

Thank you for the info, I've checked my CTOS and yes, thats where I officially know that I'm declared as bankrupt..

Even if I could pay them via monthly installment, it'd be way too long.. And thats the reason why I havent visited JIM yet, I'm just afraid I couldn't continue to use my car.

My work requires to travel here and there a lot..

Thank you so much from your insights and telling us your experience.

I'm afraid they wouldn't take my care soon, by I'm still obligated to continue with my hire purchase? Plus I really need the car, since my job require me to travel a lot in the city.. Using the public transportation will only deteriorate my work productivity.. Eventhough, yes, I've been thinking on letting go of the car..

There's no way our family could get it clear in full payment. Its just impossible, especially with our current situation. The other director for the company is my brother and yes, he's declared as bankrupt too. But he's living with my parents now and flipping burger to survive. We do have many family relatives, but under some circumstances, I don't think I would bring them into this matter, even if I would, I think none of them could do anything about this..

Do let me know if you have any other tips. What else can I do, and what to expect when I go for a visit to JIM..

Thank you so much again..

It's an individual that was previously my parent's client, he sued the company. Yet, it costs mine and my brother's name. I believe we can't directly nego and pay them directly, since I've already been declared. So I still need to go to JIM, no other option, tell me if I'm wrong..

Getting a relative to get my car is just a huge favour to ask and none of my close relative could help. This has tainted my family's image enough between our relatives. If I could, I would want settle this without bringing any other family members into it..

Thank you so much for replying.

I've considered letting my car go but unfortunately I really need them as my work requires me to travel here and there a lot.

Yes I'm currently looking into better offer elsewhere. Yet I'm still in the process of blasting my CV around.
I'll try to speak to my CFO and see if he could give me any advice on this (eventhough he could be a cranky man sometimes, nevertheless, wish me a luck!)

And based on from many replies, I guess there's nothing AKPK can do, my next step is I should be seeing JIM..

I really appreciate your advice on this. It sound different than most replies. Yes, I will find someone to trust, at least to tell them my current situation, but I'm trying my best not to drag anyone who are close to me in this since I've troubled them enough in the past.

'If it's a he, he might just say i will save you'. - How lovely it would be.

It's just an old myvi, however I love and depend on it too much, I'm trying to my best to find a mean to keep it....

Hello everyone,

I'm too overwhelm with all the replies and advices you've given me here. I truly appreciate you taking your time and effort to write me. I'll read every advice and guide and will also take note on every one of it.

I'm sorry if I've missed anyone replies, but take this as my way of saying thank you so much for responding in this thread.

I'm looking forward for any more advices, opinions and stories (experiences if anyone care to share their similar case) here.

Everything seems so much clearer now.

Thank you again!

Yes please, I would love to know what happened and how you manage to get out of it in detail.