About Bankruptcy & Debt Law in Harbourfront, Singapore
In Harbourfront, Singapore, bankruptcy and debt law governs the much-needed processes and avenues for individuals and businesses facing severe financial stress. Bankruptcy is a final alternative when a debtor cannot repay mounting loans and seeks relief from debt by distributing assets amongst creditors. Once the bankruptcy period is over, the debtor is then discharged of the debts that were included in the bankruptcy proceeding.
Why You May Need a Lawyer
You may need a lawyer when facing problems like heavy business losses, unemployment leading to unsustainable debt, or sudden and severe financial crises such as medical emergencies. An experienced attorney can help navigate through this intricate legal landscape, aid in creating a manageable plan to pay off debts, negotiate with creditors, or protect your rights if creditors violate them.
Local Laws Overview
Bankruptcy & Debt Laws in Singapore are encompassed mainly by two statutes, the Bankruptcy Act and the Insolvency, Restructuring and Dissolution Act 2018. The latter being the key legislation dealing with corporate insolvency matters. The threshold for personal bankruptcy is a debt of SGD $15,000. A debtor may voluntarily apply to be made bankrupt or a creditor may make an application to court for a bankruptcy order against a debtor.
Frequently Asked Questions
1. What happens to my assets in bankruptcy?
Your assets are vested in your bankruptcy trustee, who will sell them to pay your creditors. Some assets are protected and cannot be sold.
2. How long does bankruptcy last?
Generally, if you are a first-time bankrupt, you will be automatically discharged after three years if you fulfill your obligations in bankruptcy.
3. Can I travel overseas while bankrupt?
Traveling overseas requires permission from the Official Assignee (OA) or your private trustee.
4. How does bankruptcy affect my credit rating?
Your credit score will be negatively impacted. Bankruptcy records last in your credit history for 5 years from your discharge date or 2 years from the date of your bankruptcy annulment.
5. Can I be made bankrupt without my knowledge?
No. Before you can be made bankrupt, you must be served with a Bankruptcy Application.
Additional Resources
The Insolvency Office is a department within the Ministry of Law that oversees the administration of individual and corporate insolvencies, regulates moneylending, pawnbroking, and the administration of the Estate Money. Additionally, the Legal Aid Bureau provides legal representation to eligible persons.
Next Steps
If you think you are on the verge of bankruptcy, consult a lawyer who specializes in bankruptcy and debt law. They can assist in reviewing your situation, explain potential legal options, and represent you in court proceedings. Also, openly communicate with your creditors and seek credit counseling from a recommended agency as early intervention can help prevent bankruptcy.
Disclaimer:
The information provided on this page is intended for informational purposes only and should not be
construed as legal advice. While we strive to present accurate and up-to-date information, we cannot
guarantee the accuracy, completeness, or currentness of the content. Laws and regulations can change
frequently, and interpretations of the law can vary. Therefore, you should consult with qualified legal
professionals for specific advice tailored to your situation.
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