On August 15, the Star reported some 64,632 Malaysian Youths aged 18 to 44 years old have been declared bankrupt over the last five years. The news was reported in Parliament as Minister Liew Vui Keong explained that the highest cases of bankruptcy among the youth were recorded in 2014 with a total of 13,098 cases, followed by 13,036 cases in 2013, 11,277 in 2015 and in 2016, it was recorded to be at 11,875, based on the statistics from the Insolvency Department.
Young Malaysians can fall into bankruptcy due to a few possible factors: Accumulating debts from pursuing a higher education, mismanagement of finances, lack of financial understanding, and overspending.
While it has since declined from a total of 11,106 people declared bankrupt recorded in 2017 to 4,240 cases until April this year. What are the consequences of being bankrupt at such a young age?
For the most part, it will greatly hamper a youth’s employability as an untainted credit score is highly valued by employers. For most companies, a good credit score is reflective of a candidate’s reliability.
Plenty of companies, especially in the financial sector and those in professional services, do use background screening and credit checks to identify if a person is trustworthy and responsible around corporate assets and is in overall sound financial health so as to mitigate risks of blundering mismanagement or worse – unsavoury practices within the company.
However, those that have been declared bankrupt and are looking out for a new job, should not despair. At the end of the day, your skills are still taken into account when employers are considering a candidate.
While credit scores are an insightful tool, honesty can be a more important asset in building a career. Being truthful about your financial status at the start of your employment process can take you far in forming a foundation of trust between you and your employer.
On the road to recovery, constant self-checks can be an instrumental tool in helping your rehabilitate your financial status. By doing so, you are being responsible by taking control of your life also and being transparent to potential employers about previous mistakes. After all, who hasn’t made mistakes? It is even more important as to how you respond to setbacks and challenges.
For more information, check out our previous articles here or stay tuned to verityintel.com for future updates.