On 14 July 2015, the Bankruptcy (Amendment) Bill 2015 (the “Bill”) was passed in Parliament. It is not yet in force. The Bill will amend the Bankruptcy Act to create a more rehabilitative regime for bankrupts and ensure better utilisation of public resources.

When the Bill comes into force, it will effect the following changes to the Bankruptcy Act:

  • The minimum debt which must be owed before a person may be made bankrupt will be increased from S$10,000 to S$15,000.
  • Banks, finance companies and large undertakings will be required to appoint a private trustee to administer the bankruptcy when applying to make a debtor bankrupt.
  • There will be a new differentiated discharge framework where bankrupts can be discharged at fixed exit points.
  • Bankrupts who fail to make certain payments in full prior to discharge will have their records permanently kept on a publicly available register maintained by the Official Assignee, enabling prospective creditors to make an informed decision when extending credit to such individuals.
  • There will be a new expedited bankruptcy application process which allows a creditor to file a bankruptcy application before the expiry of the statutory demand (21 days after the statutory demand is served) if there is a serious possibility that the debtor’s property, or the value of the debtor’s property will be significantly diminished.

Reference materials

The following materials are available from the Singapore Parliament website www.parliament.gov.sg and the MinLaw website www.mlaw.gov.sg: