Impact of Bankruptcy
1. What happens after I have been made a bankrupt?
You will be required to attend at the Official Assignee’s office for a briefing on your responsibilities as a bankrupt and submit your Statement of Affairs to the Official Assignee within 21 days from the date of the making of your Bankruptcy Order. Subsequent to the filing of your Statement of Affairs, you are also required to attend the Official Assignee’s office to work out your monthly instalment with our officers. The monthly instalments paid to your bankruptcy estate will be distributed as dividends to your creditors upon your discharge from bankruptcy.
If you are a partner in firm which has been made bankrupt, you will have to submit:
- a Statement of Affairs stating your personal assets and liabilities, and
- a Statement of Affairs stating the bankrupt firm's assets and liabilities (unless it has already been submitted by another partner of the firm).
If you, without reasonable excuse, fail to submit a Statement of Affairs to the Official Assignee or submit a Statement of Affairs which is false, misleading or contains any material omission, it is an offence punishable with a fine not exceeding S$10,000 or an imprisonment for a term not exceeding two years or both.
2. How do I contact my case officer?
You may contact us at:
45 Maxwell Road
The URA Centre (East Wing)
Tel: 1800-2255-529 (during office hours)
3. What is “bankruptcy case administration”?
Case administration refers to the process of realising (selling) the bankrupt’s assets, finalising his total liabilities before his discharge from bankruptcy.
4. What will happen to my assets?
Your assets will vest in the Official Assignee for the benefit of your creditors once you are adjudged a bankrupt.
Assets include anything of value belonging to you at the date of the making of the Bankruptcy Order, or obtained by you thereafter and gifts given to you before your discharge from bankruptcy. You must deliver up possession of these assets to the Official Assignee.
For more information, please click here.
5. What assets are protected from creditors?
Property held by you on trust for any other person
HDB flats where at least one of the owners is a Singapore Citizen
Monies in your Central Provident Fund (CPF) account
Life insurance policies which are held in express trust for the benefit of your spouse or children
Any other property excluded under any other written law
Compensation awarded for legal actions in respect of personal injuries or wrongful acts against you
For bankrupts who are nominated beneficiaries of the Dependants’ Protection Scheme (DPS), the compensation amount will be paid to the Official Assignee for the benefit of the bankrupt’s creditors. Where a DPS payout is made due to the permanent incapacity of an insured bankrupt, the CPF Board or the private insurer will write in for the Official Assignee’s consent for the release of the monies to the bankrupt.
6. What will happen to my secured assets?
Creditors (e.g. banks or other financial institutions) who hold security over your assets or goods, have the right to sell the assets or goods if you default on your payments.
The Official Assignee will require any proceeds of sale exceeding that of the value of the secured debt to be remitted to the bankruptcy estate for the benefit of his creditors.
7. Can creditors take further legal action against me after I have been made bankrupt?
Creditors cannot take further legal proceedings against you to recover debts incurred before your bankruptcy.
If you receive:
- a letter of demand for payments from your creditors or;
- a notice of court action from your creditors or;
- are approached by your creditors to repay your debts to them directly,
you should advise your creditors of your bankruptcy status inform them to file a Proof of Debt against your bankruptcy estate with the Insolvency Office.
Do note that this excludes fines incurred from the breaches of the law. You will have to make payment for these fines despite your bankruptcy status. Debts owed to the Singapore government i.e. CPF Board, the Inland Revenue Authority of Singapore etc. will have to be settled with the respective government agencies even after your discharge from bankruptcy.
8. Does the Insolvency Office help bankrupts to find employment?
The Insolvency Office has a Job Referral and Skills Upgrading Programme with the Workforce Development Agency to help bankrupts with their employment prospects and opportunities.
The programme allows participants to seek employment through job referrals and career advisory services as well as obtain help for skills training.
For more information on the Job Referral and Skills Upgrading Programme, you may wish to refer to our press release.