Bankruptcy is always considered the last resort in trying to eliminate debt. No matter the situation, bankruptcy is a highly personal decision that can have both good and bad consequences. For some people, it can be an unfortunate but a very necessary choice.
Bankruptcy may indeed be a valid option for you if you are nearing the end of your working life, have more than four dependents, have an extremely large unsecured debt load and a small savings level. Depending on your situation, however, these factors do not automatically necessitate bankruptcy. Contact us to find out more.
There are many misconceptions and misinterpretations by the lesser known and the inexperienced with regards to bankruptcy in Singapore.
Note: The following is a primer on bankruptcy laws in Singapore. Understand that the following passages are not offered as legal advice and should not be considered as an alternative to legal counsel.
Bankruptcy in Singapore: Important Details to Understand
Once bankruptcy in Singapore is initiated, your assets (with some exemptions) are liquidated and the proceeds are used to pay your creditors. Certain creditors have precedence over others and this is outlined in the Bankruptcy Acts. Generally, it has the quickest effect and is often the simplest to understand. However, it is not a cure-all as it does not alleviate child support, court fines or current taxes.
Under the Bankruptcy Acts of Singapore, full disclosure of your personal financial information is necessary. Some examples of information that must be declared are your income, assets and liabilities. You will also be required to seek permission from the Official Assignee before leaving the country.
But an important fact to note is that you have ruined your credit ratings as bankruptcy stays on your credit and court records for as long as 7 years in Singapore. Obviously, this will have dire effects on your future applications for credit. It could also haunt you for a large part of your life especially if bankruptcy procedures were not handled properly. This can include having past creditors coming forward to claim their debts after you have been discharged.