Debt Repayment Scheme

The Debt Repayment Scheme (DRS) is a pre-bankruptcy scheme administered by the Official Assignee (OA). When successfully placed on DRS, the debtor avoids bankruptcy, along with its restrictions and social stigma. The debtor has the opportunity to start anew financially after committing to the terms of the DRS and making payments to repay creditors under a repayment plan for not more than 5 years.

Debtors cannot sign up or apply for the DRS. Instead, the DRS is only initiated if:

1.   If the total debt amount does not exceed $150,000; and

2.   After the debtor self-files or the creditor files a bankruptcy application with the Court,

The case will then be referred to the OA, who will assess the debtor’s eligibility and suitability for the DRS.

To be eligible, the debtor must fulfil all of the following criteria:

1.   Total liabilities do not exceed $150,000;

2.   Gainfully employed and earning a regular income;

3.   Have not been a bankrupt or been on the DRS in the last 5 years;

4.   Have not been subject to a court-based arrangement in the last 5 years; and

5.   Not a sole-proprietor or partner in any firm.

To find out more about Bankruptcy and the Debt Repayment Scheme, or more information on filing for Bankruptcy, please visit the Ministry of Law - Insolvency Office website.