Though the social stigma is loud and clear when declaring yourself bankrupt, it should also be the last option when one is unable to repay a debt of more than $150,000. Yes, unlike the year 2009, being bankrupt is harder now in 2022 and many are looking into repayment programs to clear off the outstanding that is unmanaged.
Consequence of being a bankrupt
It will be a long and tedious procedure being a bankrupt and one of it would be making appearance or declaration unlike how you were before this. However, when all options are pondered and looked at, bankruptcy should be the only option when none fits you. How do you know if you have the best option in mind? Speak to a debt consultant who does comparison for you from all possible repayment programs.
Attending in Infront of the Official Assignee
The initial stage of application would require the debtor to attend a session. This session consists of the declaration of financial matters to the OA (Official Assignee) and filing for bankruptcy. This would be an act of formality and the documents will be made clear to all creditors. From here, no other legal proceedings should follow as the dealings will be between you and the Ministry of Law.
You would also need to decide on a monthly repayment installment made directly to the Ministry of Law. This installment will be distributed as dividends to the creditors.
Your assets will be readjusted
Your assets will be entrusted to the Official Assignee for the benefit of your creditors once you have been pronounced bankrupt. This asset includes anything of value (only belonging to you) at the date of making the declaration. Be it gifts or purchases, this will be declared as your asset.
However, these assets WILL NOT INCLUDED the following list:
- A property entrusted to you by someone else
- HDB flats where at least one owner is a Singaporean.
- Your hard-earned CPF money in your account
- Life insurance policies owned by you but for the benefit of your children or spouse
- Compensation monies awarded to you due to personal injuries or wrongful acts against you
Do note that if you have secured assets under the banks or financial institutions, they will not fall under the list above as the creditors have the right to sell your asset as default payment.
Financial assets or accounts will be restructured
As a means of monitoring your financial activity, there will be a new savings account open for you, assisted by the official assignee. This account will enable you to set an GIRO payments, make cash withdrawals and also access the ATM facilities. This same account will be used to make monthly installments towards the bankruptcy estate by GIRO and also furnish all information required by the OA (Official Assignee).
Private Property purchase matters
As of July 1st 2022, you will need the permission of the OA or the Private Trustee-In-Bankruptcy before you apply to the CPF board for the use of monies in your CPF to purchase a private property (during period of bankruptcy). You are required to prove the need of the private property.
Can you still travel during bankruptcy?
YES. Surprisingly, unlike what people around you claim, you can still travel. However, like the ones on top, you would still need to seek approval from the OA to perform such activity, The good news would be the application are all done online 2-3 weeks before your travel date.