You don’t need to be a bankrupt if you made Debt Repayment Scheme
June 22nd, 2009 by ALVIN SOONG
Anyone owing a debt with just $10,000 could legally be made a bankrupt and suffer the inevitable social stigma. Bankrupts also need permission from the Official Assignee (OA) before travelling abroad.
On May 18, the High Court can refer debtors who owe less than $100,000 to the Insolvency and Public Trustee’s Office (IPTO: www.ipto.gov.sg) to be considered for the DRS (Debt Repayment Scheme). With the DRS, the IPTO can now help debtors owing less than $100,000 devise a repayment plan to pay their debts over a fixed period of time, typically between 3-5 years, without being labelled a bankrupt.
I believe this course of action actually helps a lot of near bankrupts in Singapore to avoid being labeled in a social stigman as long as they apply the DRS instead
