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| 1. |
How does a debtor become eligible for the Scheme?
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A bankruptcy application must be made to the Court and the debts owed must be less than $100,000. The debtor must be employed and earning a regular income. He must not be a sole-proprietor or a partner of a business. He must not have previously been an undischarged bankrupt, have previously been on the Scheme, or have entered into a voluntary arrangement with his creditors in the preceding 5 years before the date when he is being considered for the Scheme.
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| 2. |
How is the Scheme different from bankruptcy?
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A bankrupt is legally and publicly acknowledged to be insolvent. Upon the making of a bankruptcy order, the bankrupt’s assets vest in the OA, who will proceed to realise these assets. The bankrupt is subject to various legal restrictions including restrictions on overseas travel, the commencement of legal action and obtaining credit. A debtor on the Scheme may not be subject to the same restrictions imposed on a bankrupt.
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| 3. |
When will the Scheme come into operation?
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The Scheme will come into operation on 18 May 2009, and will be applicable to bankruptcy applications made on or after 18 May 2009.
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| 4. |
What is the time within which the repayments under the Plan must be completed?
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Generally, a Plan should be completed within three to five years.
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| 5. |
What are the contact details for DRS ?
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Insolvency and Public Trustee's Office
The URA Centre, East Wing
45 Maxwell Road, #06-11
Singapore 069118
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