Assets of a Bankrupt

1. Can I open a bank account?
Yes. The Official Assignee will assist you in opening a new savings account. This account will allow you to arrange for GIRO payment, make cash withdrawals and access the Automated Teller Machine facilities.

The following conditions will be imposed when you open the new savings account:

You have to pay your monthly instalments towards your bankruptcy estate using GIRO through that account; and
You must furnish all information required by the Official Assignee in respect of that account.

If the above conditions are not complied with, the Official Assignee can close the account.

2. How do I apply for GIRO after my bank account is opened?
Please make a photocopy of the first page of the bank passbook and forward it together with the completed Direct Debit Authorisation (DDA) form to the Official Assignee’s office. The Official Assignee will inform you once the GIRO facility is activated.

Note: Until you receive our notification, you will have to make your instalment payments via MinLaw's e-Collection Portal.

3. When do the GIRO deductions take place?
The GIRO deductions from the bank account into your bankruptcy estate account will take place between the 3rd - 7th (first attempt) or the 16th - 20th of each month (second attempt). The second attempt will be made only if the first has failed.

Please therefore ensure that you maintain sufficient funds in the bank account before the 3rd or before the 16th day of each month for the deductions.

4. Can I buy a HDB flat?
The Official Assignee’s consent is not required if you are purchasing a 5 room HDB flat or smaller.

In the event you wish to purchase a HDB flat that is bigger than 5-room, a 3-Gen flat or has a net purchase price of $500,000.00 and above, please apply to obtain the written consent of the trustee-in-bankruptcy.

You are required to prove that you have both the means and the need for such a flat. Your conduct and co-operation will also be considered when assessing such applications.

Bankrupts whose bankruptcy estates are administered by the Official Assignee can apply for such consent through the Insolvent Person’s portal in https://go.gov.sg/bankruptcy.

5. Can I use the monies in my CPF Ordinary Account to purchase a private property?

Please note that a bankrupt's private property vest in the Official Assignee or the Private Trustee-In-Bankruptcy, as the case may be, upon the making of the Bankruptcy Order.

With effect from 1 July 2022, you will need to obtain the consent of the Official Assignee or the Private Trustee-In-Bankruptcy before you apply to the Central Provident Fund Board for the use of the monies in your Ordinary Account during the period of your bankruptcy, if you intend to :-

(i) use the monies in your CPF Ordinary Account to pay towards the mortgage for your private property purchased before the making of the Bankruptcy Order, or

(ii) use the monies in your CPF Ordinary Account to purchase a private property during your bankruptcy

You are required to prove that you have the need for the private property and your conduct and cooperation in the administration of your bankruptcy estate will be taken into considering when assessing such an application.

6. Do I need to pay for the administration of my bankruptcy affairs?
You will need to bear the costs incurred by the creditor who commenced the bankruptcy proceedings, i.e. the petitioning creditor's deposit to the Official Assignee, the petitioning creditor’s solicitor's fees and disbursements incurred in making the Bankruptcy Order against you.

The Official Assignee also deducts a fee from proceeds of assets realised, or deposits placed into your bankruptcy estate. The rates of the fees charged are as follows:

On the first S$10,000	10.30%
On the next S$15,000	8.24%
On the next S$25,000	6.18%
On the next S$50,000	4.12%
On all further sums > S$100,000	2.06%

Fees are also levied on dividends distributed to creditors. The rates of the fees charged are:

On the first S$10,000	5.15%
On the next S$15,000	4.12%
On the next S$25,000	3.09%
On the next S$50,000	2.06%
On all further sums > S$100,000	1.03%

7. Do the proceeds from the realisation of my assets count towards my Target Contribution?

No. The proceeds from the realisation of your assets do not count towards your Target Contribution. Under the law, a bankrupt's target contribution is made up solely of the bankrupt’s monthly contributions.

8. What happens to my unrealised assets after my discharge from bankruptcy? Do they get revested in me since I have been discharged from bankruptcy?

Assets which are vested in the Official Assignee at the start of your bankruptcy will continue to vest in the Official Assignee even after your discharge from bankruptcy. Assets which you acquire or devolve on you during your bankruptcy will also continue to be part of your bankruptcy estate. The Official Assignee will therefore lay claim to the monies should any of these assets be converted into cash (e.g., payout from a matured insurance policy, dividends from public listed shares, and proceeds from the sale of a property) after your discharge from bankruptcy.

Other Information for Bankrupts