What Happens if You File Bankruptcy in Singapore?
In Singapore, credit can be availed easily. It has both an advantage and a disadvantage. Some people are unable to pay their debts on schedule. This leads them to pay overdue interests, plus the loan payment itself.
Some people are not just good at handling and managing debts. They simply find it hard to keep up with the payments. This can usually happen if the person lost his job or incurred a very large loss in his or her business. When such situation arises, it is best if you talk to your creditors and discuss with them a payment schedule which you think you can religiously follow. If not, you can decide on in filing for bankruptcy status.
Bankruptcy in details
A person’s legal status could be changed to bankrupt if his unpaid debts exceeded S$15,000. The bankruptcy application must be submitted to the Court by any party (creditor or debtor). Once the application is accepted, a Bankruptcy Order shall be issued, and the court shall appoint an Official Assignee who will be in-charge of the individual’s financial undertakings.
Bankrupt person definition
In Singapore, when you have been successful in filing for bankruptcy, you cannot sell or transfer any asset by yourself. The Official Assignee will be the one responsible for that since he or she is the one in-charge of the selling of your properties, and the proceeds will directly go as payment to your creditor. The individual cannot also travel out of the country. If he needs to, due to special reasons, he needs to ask for permission from the Official Assignee.
Bankruptcy and the assets involved and exempted
This means that most of the assets that are in possession of the bankrupt individual will be required to be sold as payment to the creditors. However, there are exemptions to this ruling. An HD flat cannot be sold forcibly. Also, if there is money on an individual’s CPF account, it cannot be used to pay for his debt. There are also specific types of life insurance policies that cannot be converted to payments.
Bankruptcy and its Stigma
After filing for bankruptcy, the Singaporean government has laws granting a person to be cleared from a bankrupt status within a given period. This happens especially if the Target Contribution has been paid in full. The individual will be discharged from bankruptcy status after three years. It can happen if more than half of the creditors agreed to it. If the person has a tendency to repeat the same case, the time frame is extended by two years for every count of bankruptcy filed.
Any person should avoid getting bankrupt in any sort. It is not only harmful to your financial stability, but it can also affect your integrity as a person. Social stigma is very hard to fight once you went filing for bankruptcy.
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