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Legal guides written by Silvester Legal LLC:
Bankruptcy in Clarke Quay, Singapore is a legal process whereby an individual or a company, who is unable to repay outstanding debts, can seek relief from some or all of their obligations. The bankruptcy laws in Singapore are outlined in the Bankruptcy Act, which aims to strike a balance between the needs of the creditor to recover the debt and the needs of a debtor to start anew.
Understanding complex legal matters involved in filing for bankruptcy and navigating the insolvency laws in Singapore can be daunting. A competent lawyer can help you understand your legal rights, represent you in court, liaise with your creditors, and help you navigate the complex legal procedures. If you are a debtor, a lawyer can help you determine whether bankruptcy is the best solution for your financial situation, or if there are other feasible alternatives you could consider.
The Bankruptcy Act is the principal legislation related to bankruptcy in Singapore. It describes the process of application for bankruptcy, administration of the bankrupt's assets, and the discharge from bankruptcy. It is worth noting that the Official Assignee has the responsibility of administering your bankrupt estate, i.e., realizing your assets and distributing them to your creditors. Singapore law also recently introduced the Debt Rehabilitation Scheme, which provides a structured repayment plan for debtors with total debts below a specified threshold.
As stipulated in the Bankruptcy Act, you must owe creditors at least S$15,000 before you can be made bankrupt in Singapore.
Bankruptcy has far-reaching consequences including difficulty in securing credit, restrictions on overseas travel, and impacts on employment prospects in certain fields.
A bankrupt person needs to seek permission from the Official Assignee or the court before they can travel overseas. Permission may be granted under certain conditions or for specific purposes like employment.
A discharge from bankruptcy can be obtained either automatically, after a specified period of time, or by applying to the court. Once discharged, you are no longer obliged to repay the debts included in your bankruptcy.
This can vary from individual voluntary arrangements, to debt repayment plans under the Debt Rehabilitation Scheme, or debt consolidation plans. It's essential to seek legal advice to assess what's best in your case.
There are national agencies such as the Insolvency and Public Trustee's Office (IPTO) which provide additional resources for individuals facing bankruptcy or insolvency. IPTO is a department under the Ministry of Law and deals with the administration of insolvent estates.
If you believe you might be in a position of potential bankruptcy, the best course of action is to seek professional advice as soon as possible. You can arrange a consultation with a lawyer who specializes in bankruptcy law to discuss your circumstances in confidence. An experienced lawyer can provide the necessary guidance to help you navigate and possibly mitigate your financial situation.
