Responsibilities and Rights of a Bankrupt

Duties and Responsibilities of a Bankrupt

1. Contributions to Bankruptcy Estate

(a) Must I contribute any income to my bankruptcy estate?
If you are gainfully employed, you must make a monthly contribution to your bankruptcy estate for the benefit of your creditors. The contributions will be accumulated in your bankruptcy estate and will be distributed to your creditors upon your discharge from bankruptcy.

The amount and the frequency of payments you make to your bankruptcy estate is an important factor considered by the Official Assignee when reviewing your case to determine your suitability for discharge from bankruptcy.

(b) How much do I have to contribute my bankruptcy estate?
The Official Assignee will assess the amount which you will be required to pay each month after taking into account what you reasonably need for yourself and your family.

You will be required to submit your Income Declaration declaring information on your occupation, income and list of dependants when you attend the Official Assignee’s office to file your Statement of Affairs. You will also need to update this information online by filing your Statement of Monies and Properties received every six months.

(c) What are the payment modes for my monthly instalment payments?
You can make your monthly instalment payments online (https://go.gov.sg/ecp) and through GIRO.

Please note that the MinLaw Services Centre’s counter operating hours are:
Monday to Friday: 8.30am to 5.00pm
(Closed on Weekends & Public Holidays)

(d) How can I find out how much I have to paid into my bankruptcy account altogether?
You may access the e-services portal (Individual Insolvency Administration Information) at our website and obtain the information, at no charge.

2. Travelling Overseas

(a) Can I travel overseas?
You are allowed to leave Singapore or remain overseas after obtaining the approval of the Official Assignee. If you attempt to travel overseas without the Official Assignee’s permission, you may be stopped by the Controller of Immigration from leaving Singapore and your passport may be impounded by the Immigration & Checkpoints Authority.

(b) How do I apply for permission to travel overseas?
If you wish to leave Singapore, you should apply online at least 14 days before your departure date to obtain the Official Assignee’s permission, stating the reason for your travel, your destination of travel and your period of travel.

You will also need to submit documents in respect of your travel application if required by the Official Assignee. For example, if you are travelling for employment purposes, you need to submit your letter of employment or a company letter supporting the reason for your travel.

(c) What if I need to travel urgently?
If you need to travel urgently, you are still required to apply for permission online and thereafter contact your officer to obtain confirmation on the approval status of your travel application.

(d) What if I need to travel frequently?
If you have to travel frequently, you may apply for block periods of travel subject to your conduct in bankruptcy.

(e) How do I find out the status of my latest travel application?
You may access the e-services portal (Individual Insolvency Administration Information) at our website and obtain the information at no charge.

3. Managing a Business or Becoming a Director

(a) Can I manage a business or a corporation?
You may apply to the High Court or to the Official Assignee for permission to:

i. Manage or take part in any business under the Business Registration Act (Chapter 32); or

ii. Act as director or take part in or to be concerned in the management of any corporation (Singapore or foreign company) under the Companies Act (Chapter 50).

(b) How can I apply to manage a business or corporation?
Please download and submit this application form(DOC, 57KB) together with the supporting documents indicated on the application form to the Official Assignee.

(c) What are the factors taken into consideration when reviewing my application to manage a business or corporation?
Each application will be considered on its own merit. The Official Assignee will take into consideration a number of factors including:

the cause of your bankruptcy;
your conduct before and during bankruptcy;
your previous involvement in the business or corporation;
the nature and viability of the proposed business or corporation;
the nature of your involvement in the business or corporation;
the benefits to your creditors from your involvement in the business or corporation;
the risk of you incurring more debt from running the business or corporation.

The Official Assignee may refuse the application or approve the application subject to conditions she may impose. Such conditions may include requesting that you maintain proper accounting records and make regular payments to the Official Assignee from the income or profits of the business or corporation for the benefit of creditors.

(d) How do I find out the status of my application to manage a business or corporation?
You may access the e-services portal (Individual Insolvency Administration Information) at our website and obtain the information at no charge.

4. Categorising and Zones

(a) Will I be categorised based on my conduct in bankruptcy?
Yes. This categorisation helps to streamline case administration and allows bankrupts who display satisfactory conduct to have certain privileges in relation to their applications to travel abroad and in buying an HDB flat that is greater than a 5 room flat. This streamlining will also facilitate bankrupts in their discharge from bankruptcy.

(b) What factors* do the Official Assignee consider when categorising bankrupts?
Green Zone

Statement of Affairs filed on time
Gainfully employed
Regular in making instalment payments
Instalment amount commensurates with income and needs of family
Timely submission of Income and Expenditure statements
Co-operative with the Official Assignee
No pending warrant of arrest
No pending prosecution action
No complaint under investigation
No offences committed under the Bankruptcy Act (Chapter 20)
Full disclosure of assets (both local and overseas)

Red Zone

Statement of Affairs not filed on time
Unemployed (with no good reason for unemployment)
Irregular in making instalment payments or no payments made at all
Instalment amount does not commensurate with income and needs of family
Irregular submission of Income and Expenditure statements
Uncooperative with the Official Assignee
Outstanding warrant of arrest
Pending prosecution action
Complaint under investigation
Committed offences under the Bankruptcy Act (Chapter 20)
Non-disclosure of assets (both local and overseas)

*These factors are not exhaustive and not determinative of a bankrupt’s categorisation.

(c) What are the benefits of being in the Green Zone?

The bankrupt may be granted a travel permit of more than a month to any country.
A review of the bankrupt’s case conducted after 5 years in bankruptcy to assess suitability for a discharge from bankruptcy.

(d) What are the disincentives to those in the Red Zone?

The bankrupt will generally not be granted permission to travel overseas.
The bankrupt will not be given permission to manage a business or act as a director.
A review of the bankrupt’s case to assess suitability for a discharge after more than five years in bankruptcy.

5. Other Duties and Responsibilities of a Bankrupt

(a) Can I commence or continue any court action?
You cannot commence or continue any court action, other than an action for damages or compensation in respect of personal injuries or wrongful acts against you, without the prior consent of the Official Assignee.

(b) Can I obtain further credit?
You may obtain further credit, but you must disclose your bankruptcy status to the lender if the amount of credit (or loan) you are obtaining exceeds S$1,000.

(c) Can I act as a trustee or personal representative?
You are disqualified from being appointed or acting as a trustee or personal representative in respect of any trust, estate or settlement unless you obtain the permission of the High Court to do so.

(d) Are there offences under bankruptcy?
The failure to seek necessary permission as well as the non-disclosure of the relevant information in the items 1-5 listed above may result in offences committed under the Bankruptcy Act (Chapter 20).

Other bankruptcy offences include:

the failure to file your Income and Expenditure statements;
the non-disclosure and/or misrepresentation of information relating to your affairs to the Official Assignee; and
leaving or attempting to leave Singapore with your property in order to defraud your creditors.

Other Information for bankrupts