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THE government has introduced a fast-track scheme allowing certain bankrupt individuals to be discharged within just 36 days, offering a lifeline to victims of scams and other financially distressed groups.
The initiative, part of the Second Chance Policy 3.0 (DPK 3.0), targets four specific groups, enabling them to regain financial stability and contribute once more to the economy.
Director-general of the Insolvency Department Datuk Ishak Bakri explained that the programme prioritises individuals whose bankruptcy arose not from personal negligence or financial misconduct, but from external factors beyond their control, challenging social circumstances, or failures by third parties.
“The initiative focuses on four groups who share a common trait: their bankruptcies are not due to intentional mismanagement but are caused by circumstances outside their control,” he told BH.
Alongside scam victims, the other beneficiaries include single parents, borrowers from micro, small and medium enterprises (MSMEs), and purchasers of abandoned housing projects.
Within three weeks of launching the fast-track scheme, the department recorded 64 applications in its e-Insolvensi system, demonstrating the government’s commitment to helping bankrupt individuals return to work or business and contribute to national economic growth.
Ishak noted two key conditions for eligibility: the bankruptcy case must have been administered for at least five years, and the individual must not be under investigation or involved in ongoing court proceedings.
“This initiative allows the Insolvency Department to expedite consideration of certain cases through the Small Discharge Committee (JKP) across 21 branches nationwide.
“Fast-track applications are submitted entirely online through the official portal and e-Insolvensi system, with complete applications processed within 36 days and results communicated in real-time via email notifications.
“Applicants simply log in, select ‘Fast Track’ discharge, choose the appropriate category, upload supporting documents, and submit their application,” he said.
He added that applicants can track their status online, respond to queries to complete the process, and that applications remain subject to creditor objections. “If there are objections, the case will be removed from this programme,” he said.
Since the enactment of the amended Insolvency Act 2023 (Act A1695), early implementation of DPK aims to discharge up to 130,000 bankrupt individuals annually to ensure no citizen is left behind in national development.
Previous phases saw significant success, with DPK 1.0 clearing 142,510 cases by June 2024, and DPK 2.0 releasing 204,487 cases by December 2025, surpassing the 200,000 target.
Ishak emphasised that the rising number of applications reflects growing public confidence in the fast-track scheme.
Approved applicants can print their discharge slips online, and official letters will follow shortly from the department’s branches. A user manual is also available to guide applicants through the process.
“We urge eligible bankrupt individuals to seize this opportunity to obtain relief and begin a new chapter, in line with the government’s aspiration to enhance citizens’ well-being,” he said.
On the subject of scam victims, Ishak described them as a particularly disadvantaged group, suffering losses caused by third-party actions.
“They did not benefit from the debts and yet face bankruptcy implications. Prioritising their discharge requires verification by authorities,” he said.
“This initiative shows that the department is responsive to the rise in financial crimes and helps prevent victims from bearing disproportionate economic restrictions relative to their responsibility,” he added.
For single parents, the fast-track discharge allows them to stabilise financially more quickly, ensuring that their children are not burdened by prolonged debt.
For MSME entrepreneurs, early discharge allows skilled business owners affected by crises, pandemics, or disasters to resume business, generate income, and contribute positively to their local economy and community employment.
Homebuyers of abandoned projects are also given the same relief, as they committed financially to secure housing, only to face incomplete projects that leave them liable for loans without any usable asset. - March 7, 2026
