Financial challenges are a reality many face, but when debts spiral out of control, they can feel insurmountable.
The weight of overdue payments, frozen accounts, and relentless calls from creditors can push even the strongest individuals to their limits.
For one Malaysian man, these pressures culminated in a difficult decision: he began considering bankruptcy as his only way out.
RM480,000 in Debt: A Breakdown of Financial Struggles
The man, a 29-year-old personal bodyguard, took to Facebook to share his situation. He revealed that his total debts had skyrocketed to RM480,000, encompassing loans for a house, five personal loans, two credit cards, and a motorcycle.
Despite his efforts, he found himself unable to keep up with payments for the past four months, reported Mstar.
He elaborated on his financial woes, stating, “My CCRIS record as of last month shows RM480,000. This includes a house, personal loans from five banks, credit card debt from two banks, and a motorcycle loan through Parkson Credit.”
His struggle to repay these loans was compounded by other financial commitments, including the sale of a car whose ownership transfer was still pending.
Income Slashed in Half: From RM7,000 to Barely Surviving
The financial strain drastically altered his lifestyle. Once earning RM7,000 per month, which barely covered his debts and expenses, he now survives on RM2,800 alongside part-time delivery work that adds RM300 to RM800.
This income, he explained, is just enough to support his family of five.
The pressure to make ends meet pushed him to extreme measures. He was forced to sell household items and personal belongings to cover basic expenses.
Adding to the challenge was his wife’s initial hesitation to sell their home, purchased four years ago.
“She wanted to keep the house,” he shared, “but we’ve now decided to let it go.”
However, the decision to sell required an additional RM40,000 due to the property’s 37-year loan term, leaving them in a financial stalemate.
Failed Attempts at Restructuring Debt Through AKPK
Desperate to manage his situation, the man sought help from the Credit Counselling and Debt Management Agency (AKPK).
Over the course of a year, he underwent two financial restructuring processes. Unfortunately, his problems persisted, leading to the termination of AKPK’s support two months ago.
With limited options, he turned to social media for advice. The emotional Facebook post not only detailed his challenges but also highlighted his efforts to seek a solution, such as exploring bankruptcy with the Malaysian Department of Insolvency (MDI).
‘A misstep doesn’t mean failure forever‘
The man’s candid admission struck a chord with netizens, who flooded his post with advice and words of encouragement. Some provided practical guidance on navigating bankruptcy procedures.
“Go to MDI first. They will direct you to court, but they often advise hiring a lawyer, which costs RM2,000. Self-bankruptcy, on the other hand, costs RM1,500. May you and your family find strength… I can only pray for you,” one commenter shared.
Others emphasised the importance of resilience and shared wisdom to help him persevere.
“Don’t blame yourself. A misstep doesn’t mean failure forever. In times like these, your wife must be wise in making joint decisions,” another wrote.
