Here at Debt Management Singapore we always try to find an alternative debt solution before we consider filing for bankruptcy. With that philosophy in mind our expert Debt Consultants offer a FREE financial assessment and debt review. The in-depth financial assessment will explore all the available options that you are eligible for, as well as any alternatives to bankruptcy.
If you are not eligible for an alternative debt management solution and you wish to declare bankruptcy, we believe it is important to firstly educate you about bankruptcy.
Bankruptcy laws and regulations are quite complicated for an untrained individual and each and every case may have its own set of unique issues and complications. Our highly trained team at Debt Management Singapore have prepared answers to the some of the most frequently asked questions we encounter on a daily basis.
If you would like any further information on Personal Insolvency Agreements, please call our friendly staff on 6733 7479
How do I apply for bankruptcy?
If you wish to apply for bankruptcy on a voluntary basis (as opposed to being forced into bankruptcy by a credit provider or lender through the courts) then you can do so by simply filling out the necessary bankruptcy forms and lodging them with the Insolvency and Public Trustee's Office (IPTO). You will need to complete a Statement of Affairs and a Debtor’s Petition.
If you feel overwhelmed, confused or unsure about completing the forms yourself, we offer a fast and effective service where our expert consultants will help you to complete the forms for a one off fee starting from $400.
How long will I be bankrupt?
A typical bankruptcy will last for 3 years after your Statement of Affairs is lodged and accepted by IPTO.
Will all of my assets be sold in bankruptcy?
Most personal assets will be sold in bankruptcy in an effort to reclaim outstanding debts. The only protected assets are listed below:
- Most essential household goods (but not luxury household goods)
- Motor Vehicle (worth < $7,350)*
- Essential Tools of Trade (worth< $3,600)*
These limits are adjusted periodically and are tailored towards your specific financial situation.
Can I travel overseas whilst bankrupt?
As a bankrupt you are not free to travel overseas without first obtaining permission from your Bankruptcy Trustee. Before granting permission your Bankruptcy Trustee will most likely want to see an itinerary and evidence as to who paid for trip. The Trustee may also place some conditions on your travel such as payment of any outstanding compulsory income contributions or in some cases a bond prior to travel.
Can I end my bankruptcy early?
Bankruptcy is usually for a 3 year period, however, in some cases it can be ended earlier when either one of the following occurs:
- Your Trustee annuls the bankruptcy by paying your debts in full (including any interest); or
- Your creditors agree to annul the bankruptcy by accepting to receive a settlement offer (this usually happens when a friend or family member of the bankrupt offers a lump sum of money to settle the bankruptcy debts for less than what is owed); or/li>
- The court annuls the bankruptcy by an order.
Once released from bankruptcy (either through regular discharge after 3 years) or through an early annulment (as described above) you will be released from all of your debts which you owed at the time you went bankrupt.
What impact will it have on my credit file
When you lodge your bankruptcy with IPTO you will have a default placed on your credit file for a period of 7 years. As bankruptcy usually lasts for 3 years, after you are discharged you will still have a 4 year period where there is a mark against your name. It will be up to the individual creditor or finance company as to whether or not they want to loan to you during this time.
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