What’s the difference between repaying my debts under the DRS and being declared a bankrupt?
A bankrupt is legally and publicly acknowledged to be insolvent.
As a bankrupt, you will also be subject to various legal restrictions such as on overseas travel, the commencing of legal action and obtaining credit.
A debtor accepted under the DRS may not be subject to those same restrictions.
How do I as a debtor become eligible for the DRS?
A bankruptcy application must be made to the court and, where the debts owed are less than $100,000, as a debtor, you will be referred to the Insolvency and Public Trustee’s Office (IPTO) for the Official Assignee (OA), who will consider your suitability for the scheme.
You must be employed and earning a regular income and cannot be a sole proprietor or a partner in a business.
You also must not have been an undischarged bankrupt before, have previously been on the DRS, or have entered into a voluntary arrangement with your creditors in the five years before the date you are being considered for the scheme.
Is there a specific deadline for repaying my debts through DRS?
Generally, repayment should be completed within three to five years.
What if I fail to comply with the terms of the repayment plan under DRS?
The OA may issue a Certificate of Failure and your creditors may initiate fresh bankruptcy proceedings against you.
When will I know if I am found suitable for the DRS?
If you are referred by the court to IPTO, the hearing of the bankruptcy application will be adjourned for up to six months for the OA to assess your suitability for the DRS.
IPTO will inform you and the court, and your creditor, of the outcome of the assessment before the end of the period of adjournment.
Where can I find out more about DRS?
You may e-mail your enquiries to IPTO at ipto_enquiry@ipto.gov.sg
1 comment:
Debt Repayment Scheme (DRS)
What’s the difference between repaying my debts under the DRS and being declared a bankrupt?
A bankrupt is legally and publicly acknowledged to be insolvent.
As a bankrupt, you will also be subject to various legal restrictions such as on overseas travel, the commencing of legal action and obtaining credit.
A debtor accepted under the DRS may not be subject to those same restrictions.
How do I as a debtor become eligible for the DRS?
A bankruptcy application must be made to the court and, where the debts owed are less than $100,000, as a debtor, you will be referred to the Insolvency and Public Trustee’s Office (IPTO) for the Official Assignee (OA), who will consider your suitability for the scheme.
You must be employed and earning a regular income and cannot be a sole proprietor or a partner in a business.
You also must not have been an undischarged bankrupt before, have previously been on the DRS, or have entered into a voluntary arrangement with your creditors in the five years before the date you are being considered for the scheme.
Is there a specific deadline for repaying my debts through DRS?
Generally, repayment should be completed within three to five years.
What if I fail to comply with the terms of the repayment plan under DRS?
The OA may issue a Certificate of Failure and your creditors may initiate fresh bankruptcy proceedings against you.
When will I know if I am found suitable for the DRS?
If you are referred by the court to IPTO, the hearing of the bankruptcy application will be adjourned for up to six months for the OA to assess your suitability for the DRS.
IPTO will inform you and the court, and your creditor, of the outcome of the assessment before the end of the period of adjournment.
Where can I find out more about DRS?
You may e-mail your enquiries to IPTO at ipto_enquiry@ipto.gov.sg
or visit its website at www.ipto.gov.sg
Post a Comment