Frequently Asked Questions
Q?What is Bankrupcty in Singapore?A.
Bankruptcy is a Court procedure whereby a debtor is declared by the High Court to be unable to repay a claim or debt made against him. The repayment and recovery of the claim or debt is conducted in an orderly manner managed by an Official Assignee appointed by the High Court.
Q?Who is the Official Assignee?A.
The Official Assignee is a public servant and an officer of the Court. The Official Assignee will be appointed by the High Court to be the trustee and receiver of the bankruptcy estate.
Q?When should I consider filing for bankruptcy?A.
Bankruptcy is the last option for you but if the repayment amount is many times more than what you are earning and even a Debt Repayment Program does not work out for you then you may then consider bankruptcy. It will be best to arrange a pre-bankruptcy counseling in order to know what bankruptcy entails before making a decision.
Q?Will or can my creditors seize my assets while I'm still a bankrupt?A.
No and this is because as a bankrupt, your assets vest in the Official Assignee. Your creditors cannot proceed with further legal actions against you to recover any debts incurred before your bankruptcy order.
It is best to advise your creditors of your status as a bankrupt and inform them to file in a Proof of Debt against your bankruptcy estate that is with the Official Assignee.
Q?Can I travel and what if I need to travel frequently while I am still a bankrupt?A.
Yes, you can still travel subjected to Official Assignee’s approval and if you need to travel very often while you are still an undischarged bankrupt, you may wish to apply for block periods of either three or six months and you will be allowed to travel as often as you wish.
You need to apply from the Official Assignee a permission to leave Singapore.
Q?Can I apply for loans or credit facilities after being discharged from bankruptcy?A.
You may apply for loans and credit facilities after you are discharged from bankruptcy. But the loan approving decision lies in the credit grantor. They will look into your credit history and your credibility to determine in granting any credit.
Q?How does Bankruptcy affect my credit history?A.
Your credit ratings will be adversely affected under bankruptcy. Hence after discharged, you should look at re-establishing your credit worthiness so as to have a better credit record.