Singapore LAW you need to know.

Discharge from Bankruptcy
How do I get out of Bankruptcy?

There is no automatic discharge from bankruptcy in Singapore. However, you can get out of bankruptcy in these three ways:

a. Annulment of the Bankruptcy Order by full settlement or Offer of Composition or a Scheme of Arrangement;
b. Discharge by the High Court; or
c. Discharge by Certificate of the Official Assignee.

What is an annulment?

When a bankrupt repays his debt in full or makes a settlement offer which is accepted by a majority (in number) of his creditors who also comprise at least 75% of the total debt owed, the Bankruptcy Order made against him will be annulled.

In the case of a settlement offer, the outcome of the annulment is dependent on the creditors. If the creditors accept the proposal, a Certificate of Annulment will be issued under Section 95A of the Bankruptcy Act (Chapter 20).

The annulment of the Bankruptcy Order has the effect of putting the debtor in the same position as if no Bankruptcy Order had been made against him, but it does not release the debtor from any provable debts which have not been filed against him when the bankruptcy was in force.

What is a Discharge by the High Court?

A bankrupt may apply to the High Court to grant him an Order of Discharge. The Official may also apply to the High Court for the bankrupt’s discharge under Section 124 of the Bankruptcy Act (Chapter 20) if the proven debts exceed S$500,000.

The High Court will hear the Official Assignee and the bankrupt’s creditors before deciding whether to discharge him from bankruptcy. The High Court will consider facts such as the bankrupt’s age, earning capacity and his assets before deciding whether to discharge him. In addition, the High Court will also consider the amount of payments the bankrupt has contributed for the benefit of his creditors, whether any bankruptcy or other offences were committed, and generally, whether the bankrupt has co-operated fully with the Official Assignee in the administration of the bankruptcy estate.

What is a Discharge by the Certificate of the Official Assignee?

The Official Assignee may, at his discretion based on the bankrupt’s conduct in bankruptcy, and subject to the creditors’ objections, discharge the bankrupt provided at least three years have lapsed since the commencement of bankruptcy and where the proven debts do not exceed S$500,000.

In deciding whether to issue a Certificate of Discharge to the bankrupt, the Official Assignee will take into consideration factors such as:

the cause of bankruptcy;
the period of bankruptcy;
the bankrupt’s assets and payments to the bankruptcy estate for the benefit of his creditors;
the bankrupt’s conduct; and
the level of the bankrupt’s co-operation given to the Official Assignee in the administration of his bankruptcy affairs.

What are the processes involved for discharge from bankruptcy?

The Official Assignee will first review the bankrupt’s case to determine its suitability for discharge from bankruptcy. Depending on the outcome of the review, the bankrupt may have to raise additional funds with the assistance of a third party to make a debt settlement proposal to his creditors.

Thereafter, the Official Assignee will proceed to determine the full extent of the bankrupt’s liabilities by publishing an advertisement on the intention to declare dividends to the bankrupt’s creditors. The estimated cost of the advertisement is S$350 and it will be published in The Straits Times. Creditors will have 14 days to file their claims (or Proofs of Debt).

Upon the expiry of the advertisement, the Official Assignee will adjudicate the claims filed against the bankrupt’s bankruptcy estate before forwarding the debt settlement proposal to the bankrupt’s creditors for their consideration. The process generally takes at least six months, and varies depending on the complexity of the case.

What is adjudication and do I have a role to play in it?

Adjudication is a process whereby the Official Assignee examines every Proof of Debt filed against the bankruptcy estate and the grounds of the debt before admitting or rejecting the Proof of Debt, in whole or in part.

After the Proofs of Debt have been received, you will be asked to examine these claims at IPTO’s website. You will be given the opportunity to state whether you admit to or dispute the claims. In the event that you dispute the claim filed, you will be required to provide supporting documents in order for the Official Assignee to ascertain the extent of your liability. You may also be required to attend at the Official Assignee’s office to provide more details about why you are disputing the claim or the amount.

Information for Creditors

1. Should I file for bankruptcy against my debtor?
Please refer to :
Alternatives for Bankruptcy
Filing for Bankruptcy

2. Can I get a debtor who has been made a bankrupt repay his loan?

Once a debtor is declared bankrupt by the High Court, you can no longer commence or continue with any legal action against the bankrupt to recover monetary claims that arose before the bankruptcy.

3. How do I recover my claims against a bankrupt?

If your claim was incurred prior to the making of the Bankruptcy Order, you can submit a Proof of Debt (Form 23) to the Official Assignee.

If you are the creditor who commenced the bankruptcy proceedings, you should also file a Proof of Debt against the bankrupt.

Debts that are incurred after the date of the making of the Bankruptcy Order are not provable (claimable) against the bankruptcy estate. If a bankrupt borrows from you without informing you of his status as a bankrupt, you should immediately provide feedback to the Official Assignee, using the “First Incident Report” form.


4. How do I file a Proof of Debt (Form 23)?
You can file the Proof of Debt electronically. If you would like to lodge your claim electronically, you may do so here.

5. What information is needed when filing a Proof of Debt (Form 23)?

The Proof of Debt should reflect the bankrupt’s information such as the bankrupt’s name, bankruptcy reference number and the creditor's particulars including your name, the amount owed and the nature of the claim.
Documents such as invoices, judgments and/or other supporting documents are to be furnished to the Official Assignee to support your Proof of Debt. Please refer to the checklist to creditors for more details on the supporting documents. Please quote the e-filing reference number and the bankruptcy reference number of the bankrupt when you submit the supporting documents. Proofs of Debt without any supporting documents will be rejected.

Creditors who change their addresses after filing their Proofs of Debt must notify the Official Assignee of the change.

Information for Creditors


6. Are there costs for filing a Proof of Debt (Form 23)?

For online filing of a Proof of Debt, a filing fee of S$5 is payable.

Please note that the fee for filing a Proof of Debt is not claimable against the bankruptcy estate.

7. Can I find out how much is the total claims made against the bankrupt?

Yes. You may access the Individual Insolvency Administration Information (IIAI) portal on our website to find out the amount of the total claims against the bankruptcy estate account.

In addition, you will get information such as the date the bankruptcy petition was filed, the name of the petitioning creditor, the date of the bankruptcy order, trustee in bankruptcy and the total amount in the bankruptcy estate account.

Each online search costs $5.

8. Can I take further legal actions against a bankrupt?

You cannot take further legal proceedings against a bankrupt to recover any debts incurred before bankruptcy.

9. What are my rights as a secured creditor?

If you hold security over a bankrupt’s property or goods, you have a right to sell the property or goods if the bankrupt does not continue to meet the payments when they are due. You should realise the security within six months from the date of the making of the bankruptcy order or such extended time as the Official Assignee may allow. Otherwise, you will not be entitled to claim any interest in respect of your debts subsequent to the date of the making of the Bankruptcy Order.

If the property or goods are worth more than the amount of money secured against it, any balance from the proceeds of sale after discharging the security will be remitted to the Official Assignee and used to pay a dividend to the bankrupt’s other creditors.

10. What type of assets/properties are protected from creditors?

Certain properties are protected against creditors by law, which means these properties cannot be sold or taken over by the Official Assignee.

Such properties include:

trust properties
HDB flats where at least one of the owners is a Singapore Citizen
Central Provident Fund contributions
necessary household furniture, personal effects
limited tools of trade
life insurance policies which are expressed to be for the benefit of the bankrupt’s spouse or children
compensation awarded for legal actions in respect of personal injuries or wrongful acts against the bankrupt.


11. When will I receive dividends from the bankruptcy estate?

Notices will be published in The Straits Times to inform you of the Official Assignee's intention to declare dividends to creditors. This is done when there are sufficient funds in the bankruptcy estate for a dividend payout or for the bankrupt to make a debt settlement offer.

You are advised to consider any debt settlement offer of bankrupts seriously and to accept any invitation to mediation if proposed.

12. How do I contact the Official Assignee?

You can contact our office at:

Insolvency & Public Trustee’s Office
The URA Centre East Wing
45 Maxwell Road, #06-11
Singapore 069118
Tel: (+65) 6325 1500
Fax: (+65) 6325 1417
E-mail: [email protected]

13. Other Suggested readings

Information for bankrupts

Minlaw FAQs on Individual Insolvency

Forms For Bankruptcy

Proof of Debt General Form (45 KB)

Checklist to creditors for supporting documents (23 KB)

Form DC1 -- Declaration of Creditor Whose Supporting Documents Can Only Be Furnished to the Official Assignee Within 14 Days of Filing of Proof of Debt (44 KB)

Form DC2 -- Declaration of Personal Creditor With No Documents to Support Proof of Debt (43 KB)

Objection To Bankrupt’s Discharge From Bankruptcy Under Section 125 Bankruptcy Act (Cap. 20) (23 KB)

Statement of Affairs (Form 11) Bankruptcy Act (Chapter 20) (226 KB)

Application To Buy HDB Flat (97 KB)

Application To Apply For Official Assignee's Permission To Manage Or Take Part In Any Business Under The Business Registration Act, Cap 32 (50 KB)

Application To Apply For Official Assignee's Permission To Act As Director Or Take Part In Or To Be Concerned In The Management Of Any Corporation (Singapore Or Foreign Company) Under The Companies Act, Cap 50 (55 KB)

Form C -- Agreement On Petitioner's Costs & Disbursements Of Bankruptcy Proceedings (34 KB)

Application for Interbank GIRO Form -- (For Bankruptcy Instalments) (40 KB)

FIR -- Filing of complaint against bankrupt (46 KB)

Application for Official Assignee's Permission to Leave Singapore (50 KB)

Statement of Account of Moneys and Property Received (50 KB)

Application Form for IPTO eServices (BAA) (Corporate Registration)

Application form for IPTO eServices (50 KB)

Application form for IPTO eServices (216 KB)

Application Form for IPTO eServices (BAA) (Individual Registration)

Application form for IPTO eServices (237 KB)
Application form for IPTO eServices (115 KB)

Debt Repayment Scheme (DRS)

The Debt Repayment Scheme (“DRS”) is a voluntary and debtor-driven scheme which is administered by the Official Assignee under the Bankruptcy Act (Chapter 20).


It seeks a win-win outcome for both the debtor and his creditor. Debtors with unsecured debts not exceeding $100,000 will be able to enter into a debt repayment plan (“DRP”) under the DRS with their creditors and avoid bankruptcy, along with its restrictions and social stigma.


The proposed DRP must ensure that the interests of creditors are adequately safeguarded. These debtors will commit to the DRP and repay their debts over a fixed period of time of not more than 5 years (60 months). When the debtor meets his financial obligations under the DRS, he will be released from his debts and have a fresh start.

General Information on DRS and Forms




Forms for Debt Repayment Scheme ("DRS")

DRS Proof of Debt Form (Not for bankruptcy cases) (116 KB)

Checklist to creditors for supporting documents (23 KB)

Form DC1 -- Declaration of Creditor Whose Supporting Documents Can Only Be Furnished to the Official Assignee Within 14 Days of Filing of Proof of Debt (44 KB)

Form DC2 -- Declaration of Personal Creditor With No Documents to Support Proof of Debt (43 KB)

DRS Income & Expenditure Statement (Not for bankruptcy cases) (91 KB)

DRS Statement of Affairs (Not for bankruptcy cases) (130 KB)

DRS Debt Repayment Plan (74 KB)

DRS Notice Of Appeal (83 KB)

A Guide to Using DRS e-Services for debtors (5 MB)

i) SAM Payment Guide (Pre Commencement) (1 MB)

ii) SAM Payment Guide (Post Commencement) (1 MB)

Debt Repayment Scheme ("DRS")

1. What is the Debt Repayment Scheme (“DRS”)?

The Debt Repayment Scheme (“DRS”) seeks to assist debtors who have debts not exceeding $100,000 and who are employed and earning a regular income by devising a debt repayment plan (“DRP”) to pay these debts over a fixed period of time. If a debtor fails to comply with the terms of the DRP or does not fulfil the duties imposed on him by law, it may lead to his bankruptcy.

2. How does the DRS work?

When a bankruptcy application is made to the High Court (“Court”) and the debts owed do not exceed $100,000, the Court may refer the debtor to the Insolvency and Public Trustee’s Office (“IPTO”) for the Official Assignee (“OA”) to assess the debtor’s eligibility and suitability for the DRS. If the debtor satisfies the qualifying criteria set out in the Bankruptcy Act and the OA assesses him to be suitable for the DRS, the OA will assist the debtor to devise a DRP. The flowchart summarises the DRS assessment process.
Click here to view flowchart.

3. Can a person apply for the DRS without a bankruptcy application?

It is not possible to sign up or apply for the DRS. A bankruptcy application must first be made before a debtor can be considered for the DRS.

4. What happens once a debtor is referred by the Court to the Official Assignee (“OA”)?

When a debtor is referred by the Court to IPTO, the hearing of the bankruptcy application will be adjourned for up to 6 months to enable the OA to assess his suitability for the DRS.

The debtor will receive a notice from the OA informing him to attend our office for an Introductory Briefing on the DRS. He will then be required to submit the following online at www.iptoonline.gov.sg:

a. e-Statement of Affairs (“SA”)

b. e-Income & Expenditure Statement (“I & E”)

c. e-Debt Repayment Plan (“DRP”)

d. e-Supporting Documents (“SD”)

Once the OA has accepted the submission of the above documents, the debtor will then be notified to make the payment of $350, being the preliminary administration fee.

5. How will a debtor be eligible and suitable for the DRS?

The debtor has to satisfy the following eligibility criteria:

(a) Total liabilities do not exceed $100,000;

(b) Gainfully employed and earning a regular income;

(c) Not been a bankrupt or been on the DRS in the last 5 years;

(d) Not been subject to a court-based arrangement in the last 5 years; and

(e) Not a sole-proprietor or partner and/ or should not be a director in any firm.

If the debtor meets the eligibility criteria, the OA will then assess his suitability for the DRS based on the submission of relevant forms and supporting documents.

The OA will inform the outcome of the assessment to the Court, the debtor and the applicant-creditor before the end of period of adjournment.

The debtor will be deemed ineligible for the DRS if he fails to meet any of the criteria stated above, and the OA will not assess the case further.

Debt Repayment Scheme ("DRS")

6. What makes a debtor unsuitable for the DRS?

When a debtor fails to comply with the OA’s instructions by not co-operating with the OA (e.g. failed to submit or complete the documents required of him, pay the required fees, or his liabilities exceed $100,000), he will be deemed unsuitable for the DRS and his case will be referred back to Court for the bankruptcy proceedings against him to be heard again. In such an event, the Court, the debtor and the applicant-creditor will be informed of his unsuitability for the DRS.

7. What is a debtor’s minimum repayment amount?

There is no fixed minimum repayment amount. It is determined by taking into account the debtor’s financial circumstances, his income and expenses.

8. What is the duration within which the repayments under the Debt Repayment Plan (“DRP”) must be completed?

The maximum duration of a DRP is 5 years (60 months). In any given case, the length of a DRP would vary depending on the total debt size and the monthly instalment amount.

9. When does a debtor start his first monthly instalment?

Once a debtor has been determined to be suitable for DRS, he has to prepare the payments for the stipulated first monthly instalment amount and first year’s annual fee (See below - "Summary of DRS fees and/or charges").

The sooner a debtor starts on the DRS, the less he will be paying in the long run as interest on the claims made by his creditors will stop running on the day the DRP starts.

The OA will inform the debtor, the Court and the applicant-creditor of the outcome of the assessment. The bankruptcy application made against the debtor will be deemed withdrawn if the assessment is successful.

10. How will a creditor know if a debtor is under the DRS?

A creditor who has been disclosed by the debtor will receive a notice from the OA to file an electronic Proof of Debt against the debtor. A creditor may also conduct a search at a fee of $6 via http://www.isis.gov.sg/ on an individual to check if he is on the DRS.

11. Does the debtor have to be present at the meeting with his creditors?

Yes. The debtor must attend the creditors’ meeting. The debtor may be deemed unsuitable for the DRS if he fails to attend the meeting without a valid reason and without the prior permission of the OA.

12. Does a creditor need to attend the meeting of creditors?

A creditor may choose whether or not to attend the meeting. However, if the creditor wishes to raise questions in relation to the debtor’s Statement of Affairs, Income and Expenditure Statement and the Debt Repayment Plan, he is required to submit his list of questions to the OA at least 3 working days before the meeting.

13. What documents does a creditor need to bring to the meeting of creditors with the debtor?

A creditor must bring all documents in support of his claim of a debt against the debtor. Where a creditor has yet to submit his Proof of Debt, he must also bring all documents along.

Debt Repayment Scheme ("DRS")

14. How will the monthly payments made by the debtor in accordance with the DRP be monitored and distributed to the creditors?

The OA will monitor the monthly payments made by the debtor. Upon the commencement of the DRP, creditors will receive periodic payments (quarterly to half-yearly) when there are sufficient funds in the debtor’s account. These dividends will continue until the completion of the payments as set out in the terms of the DRP.

15. What if the debtor’s financial circumstances change after the commencement of his DRP?

The debtor must inform the OA of any change in his financial circumstances, particularly where the change may affect his ability to comply with the terms of the DRP. The OA may then consider modifying the DRP.

The debtor’s creditor(s) will be informed of any changes in the debtor’s circumstances that may affect the debtor’s ability to fulfil the terms of the DRP.

16. What happens if a creditor discovers any changes to the debtor’s personal circumstances after the commencement of the DRP?

The creditor must inform the OA and the OA may make modifications to the DRP. The debtor’s creditor(s) will be informed of any changes in the debtor’s circumstances that may affect the debtor’s ability to fulfil the terms of the DRP.

17. Can creditors still take action against the debtor after the commencement of the DRP for debts owed to them?

Creditors whose debts were incurred prior to the commencement of the DRP should file a Proof of Debt with the OA, notwithstanding that the DRP has commenced.

18. How does a creditor file a claim against a debtor?

A creditor can file his Proof of Debt electronically via http://ww.iptoonline.gov.sg for a fee of $5. He must also substantiate his claim with supporting documents.

19. When does a debtor start his first monthly instalment?

Once a debtor has been determined to be suitable for DRS, he has to prepare the payments for the stipulated first monthly instalment amount and first year’s annual fee (See below - "Summary of DRS fees and/or charges").

You may wish to note that the sooner a debtor starts on the DRS, the less he will be paying in the long run as interest on the claims made by his creditors will stop running on the day the DRP starts.

The OA will inform the debtor, the Court and the applicant-creditor of the outcome of the assessment. The bankruptcy application made against the debtor will be deemed withdrawn.

Debt Repayment Scheme ("DRS")
https://www.mlaw.gov.sg/content/ipt...ayment-scheme/debt-repayment-scheme/faqs.html

20. What are some of the duties that a debtor must comply with?

A debtor must pay his instalments, bonuses from his salary and fees when required. He must not make any preferential payments to his creditors after his DRP has commenced. In addition, he must not incur further liabilities that he does not have the ability to repay.

21. If a debtor is unable to or fail to comply with the terms of the DRP or to fulfil the obligations imposed on him by law, can he be declared a bankrupt?

If a debtor is unable to or fails to comply with the terms of the DRP or if he fails to fulfil the obligations imposed on him by law, the OA may issue a Certificate of Failure against him. His creditors can then proceed to initiate fresh bankruptcy proceedings, and he may be adjudged a bankrupt by the Court subsequently.



23. Where can a debtor make the payments of his fees and instalments?

There are 2 payment methods:

(a) Payment using any Self-service Automated Machine (SAM) [link to Info Sheet – Making your monthly instalment/ fees]

(b) Payment at SingPost outlets (for cash payments)

The debtor must provide his DRS Case Number (e.g. D00XXXX-2012) and the nature of the payment e.g. instalment or bonus payment.

who gives a fcuk to your sinkie laws and kangaroo court???

I support!

What Happens To People’s Assets When They Pass On?

Is making a will necessary?


What Happens In Singapore When Someone Passes On?
Before going to a company that does estate planning (i.e. a company that helps you with will writing and its execution), it is important to first know that Singapore has its own default Intestate Succession Act. That means in the absence of a valid will, the rules set on intestate succession will apply. Muslims in Singapore have a separate rule, which is in accordance to Islamic inheritance laws.

For non-Muslims, here are some things you and your parents need to know about the intestate succession act.

1. Spouse and children will split the inheritance
Contrary to what many may think, your spouse does not get everything in the event of your death. Rather, your assets are split equally between your spouse (50%) and your children (50%). If you have more than one child, the half that belongs to the children will be split equally among them.

However it is important to note that this does not apply to all your assets. A relevant example will be HDB flats that are commonly under joint owners (i.e. husband & wife). In the event one passes on, the share of the person will automatically be passed on the surviving joint tenant(s). What that means is that your surviving children does have a claim on your asset, but not the HDB flat that you own, which would go to your surviving spouse.

Also, should an absolutely horrible event happen, when a husband passes on while his wife is expecting, the yet-to-be born child is included as a beneficiary.

2. Absence of children, but with parents
This is worth pointing out. If you do not have any children, your assets are automatically split between your spouse (50%) and your parents (50%).

This is a lot trickier than what many people realized. To contextualise it, let’s assume that a person leaves the following assets upon his/her death.

HDB Flat (Joint owner with spouse)
One Private Apartment (Under his/her name, worth $1million)
$200,000 cash

The HDB flat will automatically be transferred to his/her spouse. However, the apartment and the cash will be split equally between the spouse and parents. That means each party will receive $600,000.

Obviously this split cannot be obtained without first selling the private apartment. Hence, it is not uncommon for assets such as property to be a forced sale in the event of death.

3. Absence of spouse, but with children and parents
If there is no surviving spouse, but children and parents are still around, then the children will automatically get everything. This will be spilt according to how many children there are.

It is interesting here to note that while surviving spouse do not get everything in the absence of children (i.e. they need to split this with parents), the opposite does not apply if there are surviving children and parents but no spouse. The children get everything in this instance.

We want to stress this because there are many of us who will want to take care of our aging parents in their old age. In the unfortunate event that both you and your spouse pass on suddenly, your parents will get nothing.

Other Scenarios

Absence of spouse or children:
Parents will get everything in the absence of any spouse or children.

Grandchildren can claim parent’s share:
If a parent has passed on, their children can claim their parent’s share.

Absence of spouse, children, parents:
Siblings will get equal portions.

Absence of spouse, children, parents, siblings:
Grandparents will take equal portions.

Absence of spouse, children, parents, siblings, grandparents:
Uncles and aunts will take equal portions.

Absence of any relations
Government will take everything.


The Bottom Line
If you do not have a will, the state will have to decide how your assets are distributed and they will need to follow the abovementioned laws set out in place. It may not be fair from your point of view or your dependent’s point of view.

Naturally, estate planning is more important for those with more assets. However, as compared to the past, the generation who are in their 50s and 60s are starting to have a lot more assets under their name as compared to their parents generation.

Hence as Singapore continues to do well and our citizens accumulate assets, will writing and estate planning will start to become a very important topic for the majority of families in Singapore.

Although there are no forced heirship laws in Sinkieland (for non-Muslims), it is also incorrect to say that there is complete testamentary freedom (free to dispose of your assets by will in any manner you wish).

Section 3 of the Inheritance (Family Provision) Act is the law that limits your testamentary freedom to a small or large extent (depending on the size of your estate):

3.—(1) Where, after the commencement of this Act, a person dies domiciled in Singapore leaving —

(a) a wife or husband;
(b) a daughter who has not been married or who is, by reason of some mental or physical disability, incapable of maintaining herself;
(c) an infant son; or
(d) a son who is, by reason of some mental or physical disability, incapable of maintaining himself,

then, if the court on application by or on behalf of any such wife, husband, daughter or son as aforesaid (referred to in this Act as a dependant of the deceased) is of opinion that the disposition of the deceased’s estate effected by his will, or the law relating to intestacy, or the combination of his will and that law, is not such as to make reasonable provision for the maintenance of that dependant, the court may order that such reasonable provision as the court thinks fit shall, subject to such conditions or restrictions, if any, as the court may impose, be made out of the deceased’s net estate for the maintenance of that dependant:

Provided that no application shall be made to the court by or on behalf of any person in any case where the disposition of a deceased’s estate effected as aforesaid is such that the surviving spouse is entitled to not less than two-thirds of the income of the net estate and where the only other dependant or dependants, if any, is or are a child or children of the surviving spouse.

http://statutes.agc.gov.sg/aol/sear...-489e-b5c7-dce033f5eb43" Status:inforce;rec=0