Table of ContentsBackground of the Studya) Nameb) Travel Bench) Limited Credit) Withdrawn Assets) Restricted EmploymentProblem StatementLiterature ReviewDefinition of Millennials and BankruptcyBankruptcy of Millennials in MalaysiaCredit Card and BankruptcyAttitude towards Money and BankruptcyPoor Financial Planning and BankruptcyStudy BackgroundBankruptcy is a legal term for when an individual or business is unable to pay their outstanding debts. In Malaysia, a person who has resided in Malaysia for at least one year and owes debts amounting to at least RM30,000 during a six-month default period may be declared bankrupt. According to the Malaysian Act 2006, when a person declares bankruptcy, they must comply with certain rules and regulations until they repay their debts. Here's what will happen once a person is declared bankrupt: Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the Original Essaya) AppointedA person from the GDIA will be assigned to the Director General of Insolvency (DGI) once declared bankrupt. The DGI will administer all of the individual's assets and manage them to repay outstanding debts. ) Limited credit line A bankrupt's existing bank account will be deactivated and they will not be allowed to spend more than RM1,000 on their credit card or obtain credit more than RM1,000 from a creditor. d) Asset Removed When a person is declared bankrupt, their assets such as cars and houses will be taken and controlled by the GDI. e) Restricted employment Certain professions cannot be exercised by a bankrupt. For example, lawyer, accountant, quantity surveyor and doctor. Additionally, a bankrupt is also not allowed to own a business. In other words, entrepreneurship is no longer permitted once an individual has been declared bankrupt. According to Reuters Business & Financial News on September 7, 2015, Malaysia, which aims to become a "high income status" nation by 2020, is seeing an increase in the number of young people saddled with higher debts than they can't stand it. The increasing number of millennial bankruptcies has become one of the major concerns of the Malaysian government. This study aims to determine what factors influence bankruptcy among younger generations in Malaysia. This study provides theoretical and empirical evidence which provides useful information for the younger generation as well as for financial institutions to increase their awareness about the problem of bankruptcy. Problem StatementBankruptcy is a common problem that occurs in all countries. According to a news dated August 17, 2018, that in comparison with other developed countries like Singapore and the United Kingdom, the bankruptcy statistics in Malaysia are slightly higher. The same reports show that Malaysia recorded an average of 0.36% of the population declaring bankruptcy, compared to 0.31% in Singapore and 0.23% in the United Kingdom. According to Liew Vui Keong, Minister in the Prime Minister's Office, a total of 64,632 Malaysians aged 18 to 44 have declared bankruptcy since 2013 and 4,240 cases were reported between January and April 2018. A high rate of bankruptcies in the generation Y. in a country shows signs of a large-scale economic problem such as a depression or recession. According to previous research, millennials constitute a large population and their purchasing power makes them an attractive target for many consumer industries. When there are a large number of millennial bankruptcies, this group of consumers will become more conscious when spending, which will eventuallycause an economic slowdown. Additionally, a higher rate of millennial bankruptcy can also lead to a social problem such that bankruptcy can ruin a family. According to Anna V. Haotanto 2018, bankruptcy can cause a couple to divorce and parties who have filed for bankruptcy will normally lose custody of their child. Last but not least, a high millennial bankruptcy rate reflects a country's social ethics problems. The negative impact of bankruptcy has drawn the attention of the Malaysian government to the total number of millennial bankruptcies in Malaysia. According to The Star newspaper on August 15, 2018, the Malaysian government realizes and shows concern about the situation where 64,000 Malaysian millennials have declared bankruptcy since 2013. Even though the latest bankruptcy statistics in Malaysia show a decline in the number of bankruptcies. .Literature ReviewDefinition of Generation Y and BankruptcyAccording to Jacquelyn, the word "bankruptcy" is a legal procedure initiated by an individual or a company due to its inability to pay its debts. Bankruptcy occurs when a person is unable to pay their debts (called debtors) to the people or party lending them money. The parties who provided the loan are called creditors. For example, a banking institution or even a company offering leasing programs. According to the Business Dictionary, Millennials are the generation of people born in the 1980s and early 1990s. The name Millennials is based on the Generation X that preceded them. Millennials are also known as “echo boomers” because they are the children of the parent born during the baby boom (the “baby boomers”). At the same time, Generation Y is also known as Millennials echo baby boomers, Internet generation, I Gen and net generation, because Generation Y are children born in this era who have constant access to the technology (computers, cell phones) in their youth and they are the generation that improves themselves through technological knowledge. Millennial Bankruptcy in Malaysia Youth bankruptcy is a common problem that occurs in all countries. According to Asia News on August 24, 2018, 64,632 Malaysians aged 18 to 44 have been declared bankrupt in the past five years. In other words, this figure represents that almost 60% of the cases reported to the Insolvency Department of Malaysia are among millennials. In the same article, Director General of the Insolvency Department of Malaysia, Datuk Abdul Rahman Putra Taha , said most bankruptcy cases in Malaysia were mainly caused by the inability to maintain a car loan, personal loan, housing loan and business loan.Credit Card and BankruptcyA credit card is a card issued by a financial institution that allows its user to borrow pre-approved funds at the point of sale in order to complete a purchase. Nowadays, every individual can easily get a credit card based on their income and profession. As a result, the number of credit card holders reached around three million in the last century. Previous studies have shown that people are willing to spend more – up to 83% when paying with a credit card rather than cash. According to the New Straits Times on December 3, 2017, many recent graduates never notice that credit cards change their purchasing behavior. They believe that having many credit cards is an indicator of success. Furthermore, in line with the development of information technology, the New Straits Times newspaper on July 9, 2017 reported that an investigation conducted by Overseas Bank.