IndexContext of the Studya) Namedb) Travel Bank) Limited Credit) Assets Taken Awaye) Limited EmploymentProblem StatementLiterature ReviewDefinition of Generation-Y and BankruptcyGeneration-Y Bankruptcy in MalaysiaPaper Credit and Bankruptcy Attitude towards Money and Bankruptcy Poor Financial Planning and Bankruptcy Study Context Bankruptcy is a legal term for when an individual or business is unable to pay its outstanding debts. In Malaysia, an individual who has resided in Malaysia for at least one year and has debts amounting to at least RM30,000 for a default period of six months can be declared bankrupt. According to Malaysia Law 2006, when an individual files for bankruptcy, he or she must comply with certain rules and regulations until he or she settles his or her debts. Below is what will happen once a person is declared bankrupt: Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay ) Appointed A GDIA person will be assigned to the Director General of Insolvency (DGI) once bankruptcy is declared. The DGI will administer all assets of the individual and manage them to repay outstanding debts.b) Travel BanA bankrupt, unable to travel outside Malaysia without the written permission of the DGI or without obtaining a court order allowing the individual to travel abroad.c ) Restricted credit line A bankrupt's existing bank account will be deactivated and they will not be allowed to spend more than RM1000 on their credit card or obtain credit exceeding RM1000 from any creditor. d) Assets taken When a person is declared bankrupt, his assets such as cars and houses will be taken and controlled by GDI.e) Limited employment The work of some professions will not be able to function in case of bankruptcy. For example, lawyer, accountant, surveyor and doctor. Additionally, you are not allowed to own a business in bankruptcy. So, in other words, entrepreneurship is not permitted once an individual has been declared bankrupt. According to Reuters Business & Financial News on September 7, 2015 reported that Malaysia, which aims to become a nation with "high-income status" by 2020, is seeing an increase in the number of young people struggling with debts higher than those that they can handle. The rising number of bankruptcies among Generation Y has become a major concern for the Malaysian government. This study aims to determine what factors influence the failure of young generations in Malaysia. This study provides theoretical and empirical evidence that provides useful information to young generations and financial institutions in order to increase their awareness regarding the bankruptcy problem. Problem Statement Bankruptcy is a common problem that occurs in every country. According to a news story dated August 17, 2018, compared to other developing countries such as Singapore and the United Kingdom, Malaysia's bankruptcy statistics are slightly higher. The same reports show that Malaysia had an average of 0.36% of its population filing for bankruptcy, compared to 0.31% in Singapore and 0.23% in the UK. According to Liew Vui Keong, Minister in the Prime Minister's Department, a total of 64,632 Malaysians aged between 18 and 44 have filed for bankruptcy since 2013 and 4,240 cases were reported from January to April 2018. A high generation bankruptcy rate Y in a country shows a sign of large scale problem in an economy such as depression or recession. According to a previous study, Generation Y is a large population and theirpurchasing power makes them an attractive target for many consumer industries. When a large number of generation Y bankruptcies occur, this group of consumers will become more conscious when spending, and this will eventually cause an economic recession. In addition, a higher failure rate of Generation Y can also cause a social problem, for example, bankruptcy can ruin a family. According to Anna V. Haotanto 2018, bankruptcy can lead a couple to divorce, and parties who file bankruptcy will typically lose custody of their children. Last but not least, a high failure rate of generation Y which reflects on the social ethical issues of a country. The negative impact of bankruptcy has drawn the attention of the Malaysian government to the total number of Generation Y bankruptcies in Malaysia. As reported by The Star newspaper on August 15, 2018, the Malaysian government realizes and shows concern about the situation in which 64,000 representatives of Malaysian Generation Y have declared bankruptcy since 2013. Although the latest statistics on bankruptcy in Malaysia show a decline in the number of bankruptcies .Literature ReviewDefinition of Gen-Y and BankruptcyAccording to Jacquelyn, the word "bankruptcy" is a legal process initiated by an individual or company due to the inability to pay overdue debts. Bankruptcy occurs when a person is unable to pay their debts (known as a debtor) to the people or party who lent them the money. The parties who made the loan are known as creditors. For example, a banking institution or even a company that offers installment purchase programs. According to the Business Dictionary, Gen-Y is the generation of people born between the 1980s and early 1990s. The name Gen-Y is based on the Generation X that came before them. Generation Y is also known as "echo boomers" because they are the children of the parent born during the baby boomer (the "baby boomers"). At the same time, Gen-Y is also known as Millennials echo boomers, Internet generation, I Gen and net generation because Gen-Y consists of children born during the period when they have constant access to technology (computers, cell phones ) in their youth and are the generation that improves with technological knowledge. Failure of Generation Y in Malaysia Failure of youth is a common problem that occurs in every country. According to Asia News on August 24, 2018, 64,632 Malaysians aged between 18 and 44 have been declared bankrupt in the past five years. In other words, this number represents that almost 60% of cases reported in Malaysia's insolvency department are among Gen-Y. In the same article, Malaysian Bankruptcy Department Director General Datuk Abdul Rahman Putra Taha said that most bankruptcy cases in Malaysia were mainly caused by the inability to service car loans, personal loans, mortgages home and business loans. Credit Card and BankruptcyA credit card is a card issued by a financial institution that allows the user to borrow pre-approved funds at the point of sale to complete a purchase. Nowadays every individual can easily get a credit card based on their income and occupation. As a result, the number of credit card holders has reached approximately three million in the last century. Previous studies have shown that people are willing to spend more – up to 83% when paying by credit card rather than cash. According to the New Straits Times on December 3, 2017, many young graduates never notice that the credit card changes their purchasing behavior. They think they have many.