The Insolvency department (MdI) statistical releases indicate total bankruptcy cases as at September 2013 is 251,209 bankrupt filed (The Star, 2013) and recent bankruptcy record exhibits that the declared bankrupt cases are getting younger as comparing to past years record which worries by Bank Negara. The increase in personal bankruptcy case reflects erosion in credit evaluation process and this has lead the banks to be cautious and to tighten their lending process and loan approval. The purpose of this research study is to examine the causality factors towards personal bankruptcy in Malaysia. The concept of financial numeracy has emerged recently in personal financial management to explain the antecedents and consequences of financial numeracy. The result found significant on the mediation factors on financial numeracy and financial management outcome effects towards personal bankruptcy. Hence, the mediation outcome also found support on this research proposed theoretical framework