A total of 11,207 Malaysians were declared bankrupt during the Covid-19 pandemic but the figures do not include the full impact the pandemic had on people who are forced to go into bankruptcy.
Law minister Wan Junaidi Tuanku Jaafar said these statistics were from March 2020 to September this year and that 6,344 cases were recorded last year and 4,863 this year.
“However, it will take at least a year from the date of breach of contract (default payment) to see the actual effect of Covid-19 on debtors. This is because creditors can only petition for bankruptcy action that has occurred in the previous six months.”
“Breaches of contract were expected after the six-month moratorium for housing and car loan repayments ended in September last year and after the targeted six-month moratorium ended in March.”
