Disclaimer: The information provided is of a general nature only and may not be complete. It should not be relied on as definitive. No warranty is given that it is free from error or omission. We accept no responsibility for any loss or damage that any person may suffer as a consequence of visiting this site or any links listed from this site. You are strongly advised to consult a professional Debt Consultant and to check the accuracy of any information that is of importance to you with another reference source. If you need assistance, use our Contact Us Page.
BANKRUPTCY IN SINGAPORE
Definitions of Bankruptcy (From Wikipedia):
Bankruptcy is a legally declared inability or impairment of ability of an individual or organisation to pay their creditors. Creditors may file a bankruptcy petition against a debtor ("involuntary bankruptcy") in an effort to recoup a portion of what they are owed. In the majority of cases, however, bankruptcy is initiated by the debtor (a "voluntary bankruptcy" that is filed by the bankrupt individual or organisation).
Once bankruptcy in Singapore is initiated, your assets (minus some exemptions) are liquidated, with the proceeds used to pay your creditors. Certain creditors have precedence over others and this is outlined in the Bankruptcy Acts. Generally, it has the quickest effect and is often the simplest to understand. However, it is not a cure-all as it does not exempt you from child & wife support, court fines or current taxes.
Under the Bankruptcy Acts of Singapore, full disclosure of your personal financial information is necessary. Some examples of information that must be declared are income, assets and liabilities. You will also be required to seek permission from the Official Assignee before leaving the country.
But an important fact to note is that you have ruined your credit as Bankruptcy stays on your credit and court records for 6 years in Singapore. Obviously, this will have dire effects on your future applications for credit. It can also haunt you for a large part of your life especially if Bankruptcy procedures were not handled properly. This include past creditors coming forward to claim their debts after you have been discharged.
Now, should the inevitable happen and you become an undischarged bankrupt, these are the available form of discharge possible that you should work towards:
Section 95 - Creditors may accept composition or scheme by special resolution
Where a bankruptcy order has been made, the creditors who have proved their debts may, if they think fit ó
(a) at a general meeting of creditors; or
(b) in writing,
by special resolution, resolve to accept a proposal for a composition in satisfaction of the debts due to them under the bankruptcy, or for a scheme of arrangement of the bankruptís affairs.
Section 95A - Annulment of bankruptcy order by certificate of Official Assignee where composition or scheme accepted by creditors
Where a composition or scheme is accepted by the creditors by a special resolution under section 95, the Official Assignee may annul the bankruptcy order by issuing a certificate of annulment.
Section 123A - Annulment of bankruptcy order by certificate of Official Assignee where debts and expenses fully paid
The Official Assignee may issue a certificate annulling a bankruptcy order if it appears to the Official Assignee that, to the extent required by the rules, the debts which have been proved and the expenses of the bankruptcy have all, since the making of the order, been paid.
Section 125 - Discharge by certificate of Official Assignee
The Official Assignee may in his discretion issue a certificate discharging a bankrupt from bankruptcy. The Official Assignee shall not issue a certificate discharging a bankrupt from bankruptcy unless: -
1) A period of 3 years has lapsed since the date of commencement of the bankruptcy; and
2) The debts which have been proved in bankruptcy do not exceed S$500,000, or such other sum as may be prescribed.
Factors also taken into considerations are:
With all the bland information out of the way, it will be appropriate now to end this on a personal note, please bear in mind that Bankruptcy, though a last option, does not equate to the end of the world for you and your family but a new, better life where you can start over again but now with a clean slate.
Contributed by www.DebtReform.com