Support for Bankrupts

Credit Counselling Singapore (CCS) provides support for bankrupts and families on their journey to financial recovery.

Life can continue to move forward, even after facing significant financial challenges, including bankruptcy. Singapore’s insolvency legislation (referred to as Insolvency, Restructuring and Dissolution Act 2018 or “IRDA”) provides an opportunity for bankrupts to recover financially from being in debt, provided certain obligations are fulfilled.

On this page, you can find useful information and resources on the following:

1.   What is bankruptcy?

2.   How do I file my Statement of Affairs (SOA)?

3.   What is Monthly Contribution (MC) and Target Contribution (TC)?

4.   What can I do to get a discharge from bankruptcy?

5.   What is CCS Bankruptcy Support Programme (BSP)?

1.   What is bankruptcy?

In simple terms, bankruptcy in Singapore happens when a legal process is initiated to address a person’s debt situation, amounting to $15,000 or more, and they are unable to repay.

When a person has been declared a bankrupt, their assets may be used to pay off as much of the debt as possible. They will also have certain restrictions imposed until they are discharged from bankruptcy.

Being bankrupted does not mean that it is “the end”. Singapore’s bankruptcy framework is regulated by the Insolvency, Restructuring and Dissolution Act 2018 (IRDA).  The Act provides an opportunity for individuals to have to their names removed from the Bankruptcy Register and start fresh after their discharge from bankruptcy.

First-time bankrupts may be discharged in three to seven years while repeat bankrupts will only become eligible for discharge after five to nine years. It is crucial to know that there is no automatic discharge under IRDA.

It is also important to remember that bankruptcy does not define the person. The events that led up to one’s bankruptcy has happened, and they are now in the past.

A person can choose to approach their bankruptcy with motivation and a willingness to learn from past missteps. If they make this choice, they do not have to go through it feeling alone.

2.    How do I file my Statement of Affairs (SoA)?

If a Bankruptcy Order has been made against a person and they have received a Bankruptcy First Notice, they are required to file their Statement of Affairs (SoA) within 21 days of the Bankruptcy Order.

The Bankruptcy First Notice serves to inform a person of their duties and responsibility of being a Bankrupt. It is important to thoroughly read and understand their obligations during the period of bankruptcy administration. Failing to comply with these obligations is considered an offence under IRDA.

If you require assistance to file your Statement of Affairs (SoA), you can seek help from Credit Counselling Singapore (CCS).

Contact CCS Program Administrative Unit (PAU) at PAU@ccs.org.sg or call 6929 1928 to arrange for an appointment for Statement of Affairs (SoA) filing assistance.

3.   What is Monthly Contribution (MC) and Target Contribution (TC)?

A person is required to make a Monthly Contribution (MC) to their bankruptcy estate for the benefit of their creditors. These contributions will be accumulated in their bankruptcy estate and later distributed to their creditors upon discharge from bankruptcy.

The trustee in bankruptcy is responsible for determining both the Monthly Contribution (MC) and Target Contribution (TC), which is the amount the bankrupt is obligated to pay into their bankruptcy estate. This amount considers the bankrupt’s earning potential and their personal and family expenses.

Upon fulfilling their Target Contribution (TC) in full, bankrupts are eligible to have their names removed from the register five years after discharge.

If the Target Contribution (TC) has not been paid in full, the bankrupt’s name will remain on the register permanently.

This provision is meant to encourage bankrupts to pro-actively seek stable and gainful employment, continue providing for their families and eventually achieve a fresh start.

If you require assistance organising your personal finances and creating a budget to ensure you can make the required Monthly Contributions (MC) to your bankruptcy estate, do not hesitate to approach Credit Counselling Singapore (CCS).

4.  What can I do to get a discharge from bankruptcy?

First-time bankrupts may be discharged in three to seven years while repeat bankrupts will only become eligible for discharge after five to nine years. It is crucial to know that there is no automatic discharge under Singapore’s insolvency legislation.

The Official Assignee, Ministry of Law may discharge the bankrupt from bankruptcy, after taking into consideration certain factors, such as whether the bankrupt has met the Target Contribution (TC).

Remember, making the required monthly contributions to the bankruptcy estate is an important factor towards getting a discharge with publicly searchable records removed.

Setting a financial goal, drawing up a budget and remaining gainfully employed are practical things a bankrupt can do to work towards a fresh financial start.

5.   What is CCS Bankruptcy Support Programme (BSP)?

The Bankruptcy Support Programme (BSP) is an initiative by Credit Counselling Singapore (CCS) to provide support to both bankrupts and their families as they strive to recover financially. Through this programme, CCS hopes to help individuals and families overcome the challenges that typically comes with bankruptcy and guide them towards a brighter financial future.

For more information, attend our free 1-hour webinar on BSP, conducted monthly.

Upcoming BSP Information Sharing Sessions