Singapore recently has approved the Bankruptcy Amendment Bill, aiming to improve the bankruptcy regime, and ensuring that bankrupts have a greater certainty as to when they are eligible to be discharged.
Under a new framework, a first-time bankrupt who pays his target contribution in full can be discharged as early as three years. His name will also be removed from public records after five years from the date of his discharge.
Target contribution refers to the total amount he has to pay to the bankruptcy estate before he is eligible for discharge. This is equivalent to 52 monthly contributions for a first-time bankrupt.
Those who fail to meet the target contribution will be eligible for discharge only after seven years. Their names will remain on record permanently.
In her speech at the Country’s Parliament on July 13, Senior Minister of State for Law Indranee Rajah stressed that the changes aim to strike a balance between the need to hold bankrupts accountable and allow them to have the opportunity to make a fresh start in their financial affairs after a reasonable period of time.
Previously, a bankruptcy order could be made if the debtor owed at least 10,000 SGD in debts. This threshold has been raised to 15,000 SGD, to take into account of inflation.
Another change is to allow creditors to make an expedited bankruptcy application. After a demand for payment has been issued on a debtor, creditors will no longer to wait for a 21-day period to lapse before they can file for a bankruptcy application.
However, the creditor must show a serious possibility that the debtor’s property or its value will be significantly diminished.-VNA
Under a new framework, a first-time bankrupt who pays his target contribution in full can be discharged as early as three years. His name will also be removed from public records after five years from the date of his discharge.
Target contribution refers to the total amount he has to pay to the bankruptcy estate before he is eligible for discharge. This is equivalent to 52 monthly contributions for a first-time bankrupt.
Those who fail to meet the target contribution will be eligible for discharge only after seven years. Their names will remain on record permanently.
In her speech at the Country’s Parliament on July 13, Senior Minister of State for Law Indranee Rajah stressed that the changes aim to strike a balance between the need to hold bankrupts accountable and allow them to have the opportunity to make a fresh start in their financial affairs after a reasonable period of time.
Previously, a bankruptcy order could be made if the debtor owed at least 10,000 SGD in debts. This threshold has been raised to 15,000 SGD, to take into account of inflation.
Another change is to allow creditors to make an expedited bankruptcy application. After a demand for payment has been issued on a debtor, creditors will no longer to wait for a 21-day period to lapse before they can file for a bankruptcy application.
However, the creditor must show a serious possibility that the debtor’s property or its value will be significantly diminished.-VNA
