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Bankruptcy

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We understand your situation

Bankruptcy is a serious matter, whether being faced with potential Bankruptcy or making someone a bankrupt. At Emerald Law, our lawyers who specialise in Bankruptcy will be able to advise you on the situation and advise you on how it is best to navigate the matter avoiding costly mistakes.

Talk to us today. There’s no cost for our consultation. 

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CONTACT US TODAY

Our specialised lawyers and their team are standing by to assist you. Our first consultation is free.

Why should you apply for the DRS

The benefit of applying for the DRS is that your creditors will no longer pursue you for the outstanding amount as the Official Assignee will now handle any and all claims for unpaid monies. Also, any accruing interest will stop; this causes the debt to become "finite" and manageable. Furthermore, the DRS prevents unsecured creditors from proceeding with any legal action against you.

 

How to qualify for the DRS

The process for applying for DRS is similar to applying for a Self-Declared Bankruptcy. The difference is your total debt must be below SGD 100,000.00, must not be a sole proprietor or a partner in a partnership, and not have been on the DRS in the last 5 years and not been a bankrupt in the last 5 years. If you meet these eligibility criteria, the Official Assignee will assist you in devising a Debt Repayment Plan and you would not be declared bankrupt.

Do contact us so that we can advise you further on how you can qualify and apply for the DRS.

 

What happens if I complete the DRS?

If you have completed and repaid your debts in accordance with the terms of your Debt Repayment Plan, the Official Assignee will issue you a Certificate of Completion. This will release you from all debts provable under the DRS except for debts where a corresponding proof was not filed by the creditor or debts which you had not disclosed to the Official Assignee.

 

Please be wary that the Official Assignee reserves the right to issue a revocation of your Certificate of Completion if the Official Assignee finds that you had failed to disclose information that was required as part of the DRS or your DRS was approved because you had misrepresented information to the Official Assignee.

If you are a creditor:

If you intend to make someone bankrupt, you will need to send your Debtor a Statutory Demand. If the debtor has failed to comply with the statutory demand for at least 21 days, you can initiate the bankruptcy process. The minimum debt owed to you must be at least S$15,000.00.

Do take note that during this Covid-19 situation the new threshold for any bankruptcy application is now S$60,000.00.

 

If you are a debtor:

If the debt owed by you is at least $15,000, and the debt is payable immediately and enforceable in Singapore and you are unable to pay the debt, you may file for self-declared bankruptcy.

Do take note that during this Covid-19 situation the new threshold for any bankruptcy application is now S$60,000.00.

You should file for bankruptcy when there is a low chance of being able to pay off your debts in full and where you have attempted and not been successful in making a private arrangement with your creditors to repay the debts.

In these scenarios, bankruptcy may be an option for the following reasons:

    1. After the making of the Bankruptcy Order, your debt will be frozen at a certain amount and no more interest can be charged;
    2. Creditors cannot commence legal proceedings against you to recover the debts after the making of the Bankruptcy Order.

It may be more beneficial in your current circumstances to self-declare bankruptcy. This is because waiting for a creditor to sue you is likely to cause the interest to continue building, and worsen your prospects of paying off your debt. Additionally, regardless of who files for bankruptcy, the cost of the bankruptcy application will likely be borne by you as the debtor.

If you meet the requirements to declare for Bankruptcy you will need to do the following as well:

 

  1. You will need to fill out a detailed list of your assets and provide a list of your creditors.
  2. You will also need to file an affidavit in support of your bankruptcy application, and an affidavit verifying the detailed  list of your assets.
  3. These documents need to be filed into the Court System. You will have a hearing set for your matter in 4 weeks.
  4. At the hearing, if the Judge does not have any further questions, you will be declared bankrupt.

Once declared a bankrupt, your assets will form part of the bankruptcy estate controlled and managed by the Official Assignee. These assets include gifts given to you during your bankruptcy and anything of value belonging to you at the date of or after making the Bankruptcy Order. The Official Assignee will then pay back your debts from your bankruptcy estate to your creditors.

However, there are some assets that are protected, such as your HDB flat and monies in your CPF account. Do get in contact with us if you require advice on what should and should not be counted in your bankruptcy estate if you are considering bankruptcy.

It is important to prepare the necessary documents correctly as they will have a direct bearing on the speed with which your application can be dealt with. Failing to follow the proper bankruptcy process and the procedure can lead to the Singapore Courts dismissing your application or even requiring you to file further documents, and this will cause you to spend more time, effort and money in your matter. During these delays, interest on your debts will continue to accrue and the amount that you will need to repay to discharge yourself will continue to increase.

 

Therefore, it is always helpful to have the assistance of a lawyer to ensure that this process is as smooth and quick as possible and to prevent wastage of monies stemming from mistakes made during the process.

Speak to us today so we can help you understand your case and the next steps in your matter.

Why Choose us

we are specialised

Each lawyer assigned to your case is someone who has handled many similar cases before. They each bring a specialised element to your matter, ensuring that your case is handled with the utmost care.

we provide solutions

We ensure that the advice and solutions provided to you resolve your matter in the most efficient manner. We are not here to simply talk. We're here to provide REAL solutions.

we are committed

We provide service with such dedication that we can even arrange to meet you outside of our regular office hours.

Speak to a lawyer now

CONTACT US TODAY

Our specialised lawyers and their team are standing by to assist you. Our first consultation is free.

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