How many bankrupt individuals have been discharged under the new policy?

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Nearly 14,000 Bankrupt Individuals Discharged Under RM50,000 Threshold

As of July 2023, approximately 14,000 individuals with debts under RM50,000 have been discharged from bankruptcy. This figure reflects the initial impact of the Insolvency (Amendment) Act 2023, which came into effect on October 6, enabling the automatic discharge for bankrupts under 40 with debts not exceeding RM50,000.
Expansion of Automatic Discharge Policy

The government plans to broaden the scope of this policy further through Budget 2024. Starting next year, individuals with debts up to RM200,000 will also be eligible for automatic discharge. This initiative represents an expansion of the "second chance policy" aimed at providing a pathway for individuals to re-enter economic life and contribute to national development.
Rationale Behind the Amendments

The amendments to the Insolvency Act 1967, specifically Section 33C, are designed to facilitate the automatic discharge of bankrupt individuals. The intention is to grant bankrupts a second opportunity to rebuild their lives and engage more effectively in the country's economic activities. These changes underscore a concern for the well-being of citizens facing financial difficulties.
Implementation and Scope of Discharge

The Insolvency (Amendment) Act 2023, which took effect on October 6, allows for the automatic discharge of bankrupts who meet specific criteria, including age and debt limits. The policy is also being applied retrospectively to existing and backlog cases that fulfil the stipulated conditions, aiming to clear a significant number of cases that have been administered prior to the new Act's enactment.

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How many bankrupt individuals have been discharged under the new policy?

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