Written Reply by Minister for Law Mr Edwin Tong SC on Data on Debts Repaid to Creditors of Bankruptcy Estates in the Last 10 Years and Plans to Enhance Creditor Recovery

15 October 2025 Posted in Parliamentary speeches and responses

Question for Written Answer
Mr Saktiandi Supaat (Member of Parliament for Bishan-Toa Payoh GRC)

Question
To ask the Minister for Law (a) what percentage of proven debts have been repaid to creditors of bankruptcy estates administered in the past 10 years; (b) how does this compare to creditor recovery under the Debt Repayment Scheme (“DRS”); and (c) whether the Government has any plans to further enhance creditor recovery, under the DRS or otherwise, so that creditors can support the rehabilitation of bankrupts.

Written Answer:

1. The percentage of proven debts that have been repaid in bankruptcy cases varies from case to case, and depends on factors such as the circumstances in which the bankruptcy took place and other extraneous factors, as well as the subsequent recovery (or otherwise) of the bankrupt. The corresponding percentage for cases under the DRS has been comparatively more favourable given that the DRS applies in cases where the debtor has a regular income and where the unsecured debt does not exceed $150,000.

2. The DRS benefits both the debtor, who can avoid bankruptcy if he meets his obligations under the Scheme, and his creditors, who will receive no less than what they would have otherwise received had the debtor gone into bankruptcy. The Ministry of Law has regular dialogues with creditors to ensure that the debtors’ repayment plans under the DRS continue to be viable.

3. While the Official Assignee will make reasonable efforts to help creditors recover debt, it is necessary to balance creditors’ interest against allowing bankrupts and debtors to make a fresh start in their financial affairs. We encourage lenders to exercise prudence in extending credit.

Last updated on 15 October 2025