1. 0Introduction

Bankruptcy going the issues toward many young person presents. The worst is the bankruptcy was involves with many young person where below than age 30. Harmonizing to Credit Counselling and Management Agency in New Straits Times ( 2011 ) . an norm of 41 Malaysians are declared belly-up day-to-day. with the bulk neglecting to do refund for auto purchase loan. In short. the job of bankruptcy among young person has to be taken earnestly.

2. 0Problem Statement

Statisticss by the AKPK indicated that the figure of single bankruptcy instances had raised by 11. 2 % to 18. 053 instances in 2010 and increased by a farther 6. 2 % to 19. 167 instances in 2011 ( Controling Credit Card Abuse. 2012 ) . Harmonizing to a study by the Education and Research Association for Consumers. the figure of Malaysians in fiscal hurt appears to hold increased. as evidenced in the leap in the figure of bankruptcy filings from 13. 855 in 2008 to 19. 167 last twelvemonth ( NewStraitsTimes. 2012 ) . Therefore. this research will look into further about what are the factors that lead many young person to being sentences bankruptcy.

2. 1Research Question

2. 1. 1What are the relationship between unemployment with bankruptcy among young person? 2. 1. 2Is there any relationship between fiscal illiteracy with bankruptcy among young person? 2. 1. 3Is there any relationship between medical disbursals with bankruptcy among young person? 2. 1. 4What are relationship between loan and bankruptcy among young person?

3. 0Research Objective

3. 1 To look into the relationship between unemployment with bankruptcy among youth 3. 2 To find the relationship between fiscal illiteracy with bankruptcy among youth 3. 3 To cognize the relationship between medical disbursals with bankruptcy among youth 3. 4 To place the relationship between loan and bankruptcy among young person

4. 0The Scope Of Study

This research will analyse the job and look into the factor that contribute to bankruptcy among young person. the research worker will choose the respondents among the pupils of UiTM Arau that have different attitude toward bankruptcy issues by administering questionnaire and garner the information by utilizing several related resources.

5. 0Significant of The Study

5. 1 To the research worker: The research worker will acquire experience on how to cover with the existent state of affairs as they will hold to develop questionnaires and administer it to the respondent every bit good as farther apprehension on factors that contribute to the bankruptcy.

5. 2 To UiTM Perlis: It can be usage to increase consciousness on bankruptcy among pupils. lectors and materials of UiTM Perlis.

5. 3 To the module: With this survey. the aggregation of project paper can be added in the module as it is utile for future mention every bit good as aid other pupils to garner information and do refer to findings from past research. 6. 0Literature Reappraisal

6. 1Conceptual Discussion
6. 1. 1Bankruptcy

Bankruptcy can be define as person who has officially declared that he can non pay what he owes. In Malaysia. the minimal sum of outstanding debt sum to originate bankruptcy is RM30 000 ( Insolvency Department of Malaysia. 2012 ) . Once declared insolvent. life would really tough because their name would be blacklisted in the Central Credit Reference Information System ( The Star. 2010 ) .

6. 1. 2Loan

An agreement in which a loaner gives money or belongings to a borrower. and the borrower agrees to return the belongings or refund the money. normally along with involvement. at some future point in clip. Normally. there is a preset clip for refunding a loan. and by and large the loaner has to bear the hazard that the borrower may non refund a loan.

6. 1. 3Unemployment

An economic status marked by the fact that persons actively seeking occupations remain unhired. Unemployment is expressed as a per centum of the entire available work force. The degree of unemployment varies with economic conditions and other fortunes ( Lerner. 1991 ) .

6. 1. 4Financial Illiteracy

Fiscal illiteracy defined as inability to understand the fiscal affairs. Financial illiteracy frequently entails to person who do non possess a knowing in doing a proper determination refering to certain personal finance countries like estate. insurance. puting. salvaging. revenue enhancement planning and retirement. In that connexion. fiscal illiteracy can take to doing hapless fiscal determinations that can hold inauspicious effects on the fiscal wellness of an person ( Hallman & A ; Rosenbloom. 2000 ) .

6. 1. 5Medical Expenses

Medical disbursals refer to any disbursals incurred by persons due to wellness attention costs and it normally involved high cost. For illustration cost for medical specialties. intervention. surgery. premium for wellness insurance and other related costs.

6. 2Summary of Previous Study

6. 2. 1Loans

Harmonizing to Haini Hassan Deputy Director-General Insolvency Department ( 2012 ) from the statistic brand by the Bank Negara the auto loans is the top list of the ground bakruptcy followed by personal and lodging loans. In add-on. she added that the recognition card debts made up the other major causes of bakruptcy. Similary. Bank Negara Malaysia ( 2009 ) cited in Malay Mail Insight stated that 3548 people declaring banruptcy due to the recognition card debt whereby 1780 people belong to those aged 30 and below.

6. 2. 2Unemployment

A study conducted by Deborah Ralston. Rosalind Mason. & A ; Jaynendra Kumar ( 2001 ) . the major self-attributed causes of consumer bankruptcy in 1998-99 were unemployment and it cause 38 % of consumer bankruptcy in 1998-1999 which is major ego attributed. Similarly. J. Zywicki ( 2004 ) found that the first. high degrees of family liability. including the influences of recognition cards and place mortgages followed by unemployment and retrenchment in the 2nd topographic point.

6. 2. 3Financial Illiteracy

Harmonizing study conducted by Bianco and Bosco ( 2012 ) . reported that college pupils are financially illiterate and non cognizant about accomplishment to do sound fiscal determination. Furthermore. Seyedian and Yi ( 2011. based on study consequence in which participants right answered 53 % of inquiries on personal finance. which they was claim that college pupils are non knowing about personal finance and they may non do sound fiscal determinations.

6. 2. 4Medical disbursals

Based on study conducted by Brotman ( 2006 ) study responses indicated that between 46. 2 and 54. 5 per centum of the persons interviewed from 931 respondent cited medical disbursals as lending to their fiscal jobs besides 75. 7 per centum of medical bankcruptcy filers had wellness insurance coverage when their unwellness or hurt began. In add-on. among households with medical disbursals. infirmary measures were the biggest medical disbursal for 42. 5 per centum. prescription medicines for 21 per centum and doctor’s measures for 20 per centum ( Himmelstein. Warren and Deborah. 2005 ) .

6. 3Research Model

FACTORS OF BANKRUPTCY AMONG YOUTH
Loan
Unemployment
FINANCIAL ILLITERACY
Checkup Expense

6. 4Hypothesis Development

H0: There is no relationship between the loan and bankruptcy among youth H1: There is relationship between the loan and bankruptcy among young person

H0: There is no relationship between unemployment and bankruptcy among youth H1: There is relationship between unemployment and bankruptcy among young person

H0: There is no relationship between fiscal illiteracy and bankruptcy among youth H1: There is relationship between fiscal illiteracy and bankruptcy among young person

H0: There is no relationship between medical disbursals and bankruptcy among youth H1: There is relationship between medical disbursals and bankruptcy among young person