Majority of bankruptcy cases in the country caused by vehicle purchases

PETALING JAYA: One of four bankruptcy cases in the country is caused by the purchase of vehicles.
According to the statistics from the Insolvency Department, which was made available to theSun, 27.94%, or about 28,374 bankruptcy cases that the department had recorded between 2011 and 2015, fall into this category.
The report also noted the other top reasons for bankruptcy among the public were housing loans (with 21,697 cases or 21.36%), personal loans (20,727 cases or 20.41%), and business loans (11,899 cases or 11.71%).
With a total of 101,537 cases handled by the department in the period of five years (2011 to 2015), it also pointed out that while there was a rise in cases between 2011 and 2014, from 19,167 cases to 22,351 cases, the figure dropped in 2015, with only 18,547 cases.
"The majority of the cases are from Selangor, with 29,421 cases between 2011 and 2015, followed by Federal Territories (14,479) and Johor Baru (14,064 cases)," the report stated.
The statistics also showed that Perlis has the lowest number of bankruptcy cases in the five-year period, with only 343 cases.
The statistics also pointed out that in the same five-year period, 35.24% of the bankruptcy cases comprised individuals aged between 35 and 44 years old.
Bankrupt cases involving individuals aged between 25 and 34 years old comprised of 22.52% of the cases, while 1.25% are below 25 years of age.