Bankruptcy is the last resort when an individual cannot repay a debt of more than $15,000. Either the borrower or creditor may file a Bankruptcy Application with the High Court
There are consequences to being declared bankrupt such as restrictions to travel overseas, restrictions in managing a business or acting as a director of a company, and difficulties in obtaining a loan or securing a job.
You are advised not to ignore your creditors’ calls, letters and court documents requesting for payment. You can be made a bankrupt even if you choose to refuse to respond to your creditors. However, when you have exhausted all options to repay your debts, bankruptcy may be considered as the last resort.
When a person has been made bankrupt by a High Court order, either a Private-Trustee-in-Bankruptcy (PTIB) or the Official Assignee (OA) will be appointed to administer the bankrupt’s financial affairs.
The PTIB or OA will discuss with the bankrupt to determine the Monthly Contribution and Target Contribution to be repaid to creditors. The amount will be determined by the bankrupt’s income and basic expenses required for the bankrupt and maintenance of his/her family.