MinLaw Seeks Feedback on Proposed Legislative Amendments to the Debt Repayment Scheme
9 June 2025 Posted in Press releases
1. The Ministry of Law (“MinLaw”) launched a public consultation today to seek feedback on the proposed legislative amendments to the Insolvency, Restructuring and Dissolution Act 2018 (“IRDA”) and the Insolvency, Restructuring and Dissolution (Debt Repayment Scheme) Regulations 2020, in relation to the Debt Repayment Scheme (“DRS”).
2. The public consultation will run for three weeks, ending on 27 June 2025.
Review of the Debt Repayment Scheme
3. The DRS was introduced by MinLaw on 18 May 2009 as a voluntary debtor-driven scheme to help debtors with a regular source of income, and who have incurred debts not exceeding a specified threshold (currently $150,000), avoid bankruptcy1. At the same time, it ensures that creditors receive higher repayments than what they would otherwise receive in the event of the debtor’s bankruptcy.
4. The DRS was last reviewed in 2016, which led to several amendments being introduced with effect from 30 July 2020 in the IRDA.
5. In this round of review, MinLaw intends to make amendments to the IRDA to ensure that the DRS is not subject to abuse, and remains both relevant amid Singapore’s evolving financial landscape and effective in achieving its intended objectives. The proposed key amendments include:
a) Introducing a new criminal offence to target the soliciting and canvassing of any person, in the course of any business, to make a bankruptcy application;
b) Adding two new grounds of unsuitability for the DRS, namely the failure to pay the preliminary fees, and the incurring of debts with no reasonable ground of expectation of being able to pay;
c) Adding one new ground of failure, namely the incurring of debts with no reasonable ground of expectation of being able to pay; and
d) Imposing a four-week time limit for creditors to file their proofs of debt under the DRS.
Public Consultation
6. MinLaw invites members of the public to provide their feedback on the proposed key amendments to the IRDA, in relation to the DRS. The full consultation paper can be viewed online at: https://go.gov.sg/public-consult-drs.
7. Those who wish to submit their views and feedback may do so by 27 June 2025 at the following link: https://go.gov.sg/drs-proposed-legis-consult.
MINISTRY OF LAW
9 JUNE 2025
1. Under the DRS, the debtor will use a portion of his income to repay all or some of his debts within a maximum period of five years, by following a structured repayment plan under the supervision of the Official Assignee. Upon the completion of his repayment plan under the DRS, the debtor will be released from his debts.↩
Last updated on 9 June 2025