Best Restructuring & Insolvency Lawyers in Geylang

About Restructuring & Insolvency Law in Geylang, Singapore

Restructuring and insolvency law in Geylang, Singapore, provides a framework for individuals and businesses facing financial distress. Geylang, situated in Singapore’s central region, is home to many small and medium enterprises, shophouses, and residential properties. Like the broader Singapore jurisdiction, Geylang follows established legal processes to help debtors manage their liabilities while safeguarding the interests of creditors. The law covers both rehabilitating financially distressed entities through restructuring, and managing the orderly wind-up of businesses or individuals who cannot repay their debts.

Why You May Need a Lawyer

There are several scenarios in which people in Geylang might require professional guidance in restructuring and insolvency matters:

• Business owners struggling to meet loan repayments or facing cash flow issues.
• Individuals overwhelmed by personal debts, such as unpaid credit cards or personal loans.
• Creditors who want to recover debts from insolvent companies or individuals.
• Entrepreneurs seeking to proactively restructure debts to avoid insolvency.
• Landlords, suppliers, or contractors affected by a client’s insolvency.

Local Laws Overview

Singapore has a robust legislative regime for restructuring and insolvency, largely governed by the Insolvency, Restructuring and Dissolution Act 2018 (IRDA). Key aspects relevant to Geylang residents and businesses include:

• Judicial Management: A court-supervised process where an independent manager attempts to rehabilitate the company.
• Scheme of Arrangement: A legal mechanism allowing a company and its creditors to agree on a repayment plan.
• Personal Bankruptcy: For individuals unable to pay debts of 15,000 Singapore dollars or more, bankruptcy proceedings may be initiated.
• Corporate Insolvency: Companies that are unable to pay their debts can be wound up voluntarily or compulsorily through the court.
• Debt Repayment Schemes: An alternative to bankruptcy for individuals with smaller amounts of debt, administered by the Official Assignee.

Frequently Asked Questions

What is the difference between restructuring and insolvency?

Restructuring aims to help a business or individual reorganize their debts and recover financially, while insolvency typically refers to the legal state where someone or a company is unable to pay debts when due.

Can I avoid bankruptcy by negotiating with creditors?

Yes, debtors can often negotiate new repayment terms or partial settlements with creditors directly or through formal schemes like the Debt Repayment Scheme, potentially avoiding the need for bankruptcy proceedings.

What happens if my business in Geylang becomes insolvent?

You should consult a lawyer immediately. Your business may have options such as judicial management, schemes of arrangement, or voluntary winding up, depending on your specific situation.

Are there special rules for small businesses in Geylang?

While the laws are consistent across Singapore, small businesses may be eligible for simplified insolvency processes and debt restructuring schemes designed to be faster and more affordable.

What assets are protected during personal bankruptcy?

Certain assets, such as CPF savings and necessary household items, are protected from creditors during bankruptcy. However, non-essential assets may be sold to repay debts.

Will bankruptcy or company liquidation affect my employees?

In corporate insolvency, employees' salary claims have a priority over other unsecured creditors. However, salaries and benefits may be affected depending on available company assets.

How long does bankruptcy last in Singapore?

Under current laws, undischarged bankruptcy typically lasts three to seven years, depending on the circumstances and behavior of the bankrupt individual.

What is a scheme of arrangement?

A scheme of arrangement is a legal compromise between a company and its creditors to reorganize debt repayment, often approved by a court and requiring majority creditor support.

How can I check if a company is being wound up or insolvent?

Information on insolvency proceedings is publicly available through official sources such as the Accounting and Corporate Regulatory Authority (ACRA) and the Government Gazette in Singapore.

Where can I get help if I cannot afford legal fees?

Those unable to pay for legal services may seek assistance through pro bono organizations, the Law Society of Singapore, or the Legal Aid Bureau, which offer free or subsidized legal assistance for eligible cases.

Additional Resources

The following organizations and resources may be useful for those needing advice or support:

• Ministry of Law - Insolvency Office: Provides information on bankruptcy and debt repayment schemes.
• Accounting and Corporate Regulatory Authority (ACRA): Handles corporate insolvency and liquidation notices.
• Law Society of Singapore: Offers lawyer referrals and pro bono legal help.
• Legal Aid Bureau: Provides subsidized legal assistance for eligible low-income individuals.
• Credit Counselling Singapore: Offers debt management and financial counselling services.

Next Steps

If you believe you need legal assistance for restructuring or insolvency in Geylang, Singapore, consider the following steps:

• Evaluate your financial situation and gather all relevant documents such as debts, assets, and contracts.
• Contact a reputable law firm experienced in restructuring and insolvency cases, ideally with local expertise in Geylang.
• Seek an initial consultation to understand your rights, obligations, and options.
• If cost is a concern, reach out to legal aid organizations or pro bono services.
• Stay informed about your responsibilities during insolvency or restructuring processes to avoid legal complications.