Understanding Bankruptcy

At Credit Counselling Singapore (CCS), we understand that facing bankruptcy can be challenging. We're here to support you and your family on your journey to financial recovery.

What is Bankruptcy?

Bankruptcy is a legal process that can occur when an individual owes $15,000 or more and is unable to repay their debts. It is considered a last resort to address overwhelming debts that cannot be managed through other options. After a Bankruptcy Order has been made, creditors cannot take further action to collect the debt owed.

To find out more, attend our free monthly talks on “Bouncing Back from Financial Setbacks”. During the talk, you’ll learn:

1. What is bankruptcy?
2. Are there alternatives to bankruptcy?
3. Requirements for getting a discharge from bankruptcy.
4. What are Monthly and Target Contributions?
5. What are CCS programmes and services?

Upcoming "Bouncing Back from Financial Setbacks" (conducted via Zoom webinar)

What is CCS Bankruptcy Support Programme (BSP)?

While it is a financial setback, life can continue forward. Singapore’s Insolvency, Restructuring and Dissolution Act 2018 or (IRDA) provides an opportunity for bankrupts to have a fresh start, provided certain obligations are met.

CCS Bankruptcy Support Programme (BSP) offers compassionate support and guidance to navigate the challenges during bankruptcy, empowering you and your family to bounce back and restore your financial well-being.

I have received a Statutory Demand – have I been made a bankrupt?

A statutory demand is a written notice telling you how much money you owe. It explains why the demand was issued and gives a deadline to pay the debt. If you don't pay the amount you owe by the deadline, you may face bankruptcy proceedings.

If you intend to avoid being made bankrupt, or are unsure what to do after receiving Letters of Demand from creditors, or an Originating Claim from the Court, we recommend attending a Debt Management Information Talk conducted by CCS.

As a non-profit charity, we provide reliable, unbiased information to help you manage and address debt during our free weekly talks. You’ll learn:

1. Options for handling unsecured debt.
2. Dos and don'ts of dealing with debt.
3. How to deal with creditors when you have missed payments.
4. Common collection actions that creditors can take.
5. Details about CCS's free credit counselling service and Debt Management Programme (DMP).

 
I have received a Bankruptcy First Notice.

If you have received a Bankruptcy First Notice, it means that a Bankruptcy Order has been made against you. You are required to file your Statement of Affairs (SoA) within 21 days from the date of the Notice.

If you need help with filing your Statement of Affairs (SoA), you may contact CCS at PAU@ccs.org.sg or call 6929 1928.

What are Monthly and Target Contributions?

Monthly Contributions (MC): Bankrupted individuals must make regular payments to their Bankruptcy Estate Account. The bankruptcy administrator will determine the amount after considering the bankrupt’s income and necessary expenses required for themselves and their family.

Target Contribution (TC): This is a total amount set by the bankruptcy administrator at the beginning of the bankruptcy. The bankrupt is eligible for discharge upon full payment of the Target Contribution.

When can a bankrupt be discharged from bankruptcy?

First-time bankrupts can be discharged in 3-7 years, and repeat bankrupts in 5-9 years, depending on contributions made to the Bankruptcy Estate Account and compliance with the IRDA.

If the bankrupt demonstrates good conduct and makes regular payments to fully meet the Target Contribution, the bankruptcy administrator may recommend a discharge.