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What is Debt Repayment Scheme in Singapore?

The Official Assignee administers the Debt Repayment Scheme, which is a pre-bankruptcy program.

It aims to achieve a win-win situation for both the debtor and the creditor. Debtors with unsecured debts of less than $150,000 will be able to enter into a repayment plan with their creditors under the Debt Repayment Scheme and avoid Bankruptcy, along with its restriction and stigma.

Creditors’ interests must be effectively secured under the proposed repayment plan. These debtors will commit to the repayment plan and settle their debts over a fixed period of not more than five years. The debtor will be liberated from his debts and given a fresh start if he meets his financial obligations under the Debt Repayment Scheme.

Application for Debt Repayment Scheme:

It is not possible to apply or sign up for the Debt Repayment Scheme because it is initiated when a bankruptcy application is filed against you in the High Court either by your creditor or yourself.

Eligibility for Debt Repayment Scheme

You must meet all of the following eligibility requirements:

  • i. Total liabilities do not exceed $150,000

  • Gainfully employed and earning a regular income

  • Not been a bankrupt or been on the DRS in the last five years

  • Not been subject to a court-based arrangement in the last five years

  • Not a sole proprietor or partner in any firm

    Suppose you fail to meet any of the above criteria. In that case, you will be deemed ineligible for Debt Repayment Scheme, and the OA will not assess further.

    Suppose the debtor does not comply with the terms of the Debt Repayment Scheme. In that case, the scheme fails, and creditors will be able to file a new bankruptcy petition.

    For additional information, go to the Ministry of Law Insolvency Office - DRS webpage.

More significantly, it is closing one chapter and opening another.

We help our clients thrive in a time of noise and distraction by creating success, experiences that compels people to act. We get behind their life mission and help them to restart.

To start, contact us online or call us at 8818 3816 now, and we will be happy to address the financial strain.

Why choose SG Debt Buster?

We can help you change your debt story and start afresh.

Every year, we help over thousand plus people resolve their problems, repay their debts and rebuild their lives. We could do the same for you.

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