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Bankruptcy law in Raffles Place, Singapore is governed by the Insolvency, Restructuring and Dissolution Act (IRDA) and handled through the Insolvency Office. This law refers to an individual's or a company's inability to repay their debts. Bankruptcy is a legal proceeding aimed at protecting the rights of both creditors and debtors. It involves the seizure and valuation of the debtor's non-exempt assets to repay creditors. This is frequently the last resort for indebted businesses or individuals.
While it is not mandatory to have a lawyer to file for bankruptcy, it is wise for an individual or a business to engage one. Lawyers can properly guide you through the complex bankruptcy process, ensuring you understand your rights and obligations. They can also provide invaluable advice, helping you to navigate your case advantageously and anticipate any potential issues. Additionally, the lawyer can represent you in court, handling challenging negotiations and ensuring that all proceedings are performed correctly.
Under Singapore's laws, an individual is insolvent when they are unable to pay their debts as they become due. Bankruptcy proceedings can be initiated by the debtor themselves or by a creditor if the debt exceeds $15,000. Once a bankruptcy order is made, the debtor’s assets are vested in the Official Assignee. This does not include assets exempt by law such as HDB flats unless there is a co-owner who is not a bankrupt. Bankrupts may also face certain restrictions such as having to seek the Official Assignee’s or the Court’s permission to travel, start a new business, or manage a business. However, Bankruptcy in Singapore is not a life sentence. With proper administration of their duties and payments, an individual may seek early discharge from bankruptcy.
No, not all types of debts are erased through bankruptcy. Unsecured debts such as credit card debts, personal loan debts, and medical bill debts can be dismissed, but secured debts such as mortgage loans are not erased due to the collateral associated with them.
Once a bankruptcy order is made, your assets are vested with the Official Assignee. However, certain properties, such as your necessary household furniture and HDB flat, are exempt unless there is a co-owner who is not a bankrupt.
Yes, you can continue working after declaring bankruptcy. However, if your earnings exceed your reasonable expenses, you will be required to contribute a portion towards the repayment of your debts.
Yes, however, you will need to seek the Official Assignee’s or the Court’s permission to travel overseas.
Debtors have the opportunity to be discharged from bankruptcy through several ways: making full settlement to creditors, making an application to Official Assignee, or by an order of the Court. You would need to fulfill certain conditions to successfully be discharged.
The Insolvency Office under the Ministry of Law is the primary governing body that deals with bankruptcy in Singapore. Individuals looking for resources can visit their website for comprehensive information on insolvency proceedings. They can also refer to Singapore Statutes Online to have a look at the IRDA and study the specific laws to understand their rights and obligations better.
If you suspect that you may need to file for bankruptcy, your first step should be to consult with a legal expert. This ensures that you fully understand your situation and the ramifications of filing for bankruptcy. Try to be proactive in finding a lawyer who specializes in bankruptcy and gather all relevant information and documents related to your debts. You can then proceed with the necessary legal process, guided by your lawyer's expertise and advice.
