Bankruptcy Rehabilitation Programme
What happens after I have been made a bankrupt?
There may have been many days and nights spent struggling to provide for your family, pay bills, feelings of anxiety when taking calls by creditors and uncertainty about what lies ahead. You can certainly move on in life, even if you have experienced a major financial setback such as facing bankruptcy or being made a bankrupt.
As your bankruptcy goes into administration, the calls from creditors have stopped, but you may still have lingering questions and doubts about what lies ahead. Being bankrupted may have been a big hurdle, but it does not mean that it is the finish line, financially speaking.
There is one thing that you can be certain of - Singapore’s bankruptcy framework known as Insolvency, Restructuring and Dissolution Act 2018 (IRDA) provides an opportunity for bankrupts to have to their names taken off the Bankruptcy Register and have a “fresh start” after their discharge from bankruptcy.
How do I have a fresh start after discharge from bankruptcy?
First-time bankrupts may be discharged in between three to seven years. Repeat bankrupts will only be eligible for discharge after five to nine years. There is no automatic discharge under IRDA.
In order to achieve a fresh start, the bankrupt has to pay their Target Contribution in full. The bankrupt’s Monthly Contribution and Target Contribution will be determined by the trustee in bankruptcy, which may be the Official Assignee (OA) from the Ministry of Law Insolvency Office or a Private Trustee in Bankruptcy (PTIB), taking into account the bankrupt’s income, family and household expenses, potential earnings abilities, and prevailing economic conditions.
The Target Contribution is equivalent to 52 monthly contributions for first-time bankrupts and 76 monthly contributions for repeat bankrupts.
Upon fulfilling their Target Contribution in full, bankrupts are entitled to have their name removed from the register five years after discharge.
If after seven years (nine years for repeat bankrupts), Target Contribution has not been paid in full, the bankrupt’s name will remain on the register permanently.
With this opportunity, it is hoped that bankrupts are motivated to seek out a stable and gainful employment, provide for their families and loved ones and eventually arrive at a fresh start.
It is important to remember that being a bankrupt does not define you. The events that led up to your bankruptcy has happened and those events are now in the past.
Moving forward, you can also choose to approach your bankruptcy with motivation and being open to learning. If you choose to do so, you do not need to go through it alone.
Bankruptcy Rehabilitation Program (BRP) – Supporting Bankrupts and their Families to a Fresh Start
The Bankruptcy Rehabilitation Programme (BRP) aims to provide support and guidance to bankrupted individuals and their families as they journey to a fresh start.
As an enrolled member, you can access
1. Our Programme Administration Unit (PAU), where you can make general queries pertaining to your personal financial matters and insolvency.
2. Link-up for referral services for emotional, mental health and family relationship counselling.
3. Link-up for employment assistance, such as help in re-skilling for new job roles, career guidance and job-matching services.
4. Link-up for thematic financial counselling and receive advise on managing money better, setting financial goals and drawing up a budget.
5. Our event page to sign-up for talks on building resilience in the areas of money management, employment, mental and emotional well-being.
Credit Counselling Singapore is committed to facilitate a 12-month pilot run (from May 2022 to April 2023) of the programme with the support of the Insolvency Office, Ministry of Law.
Participation in the BRP is entirely voluntary. For those who enrol into the programme, they can hope to achieve the following:
1. Be motivated to make regular payments for monthly contribution payments in order to fulfil their Target Contribution.
2. Receive assistance, if required, to secure gainful employment to enable them to keep up with their monthly contribution payments and take care of their family’s financial needs
3. Together with their family members, improve money management skills and become more financially resilient.
4. Together as a family, rebuild relationships and keep the family intact.
5. Regain self-esteem and confidence.
To find out more, attend any of our BRP Information Sharing Session conducted twice a month over Zoom.