Bankruptcy Lawyers in Singapore

Feeling overwhelmed by debts? Are relentless creditors making your life difficult?

Filing for self-bankruptcy might be a viable solution. The purpose of filing for self-bankrtupcy is to permit an honest, but unfortunate debtor to obtain a discharge from their debts, subject to reasonable conditions.

As specialists in bankruptcy law, we have a strong track record of assisting individuals to file for personal bankruptcy. Our clients appreciate our extensive expertise and reasonable fees. We can guide you through the crucial aspects of bankruptcy in Singapore and help you decide if it’s the right step for you.

Why are more people filing for self-bankruptcy in Singapore?

Bankruptcies are on the rise.  According to data from the Ministry of Law’s Insolvency Office, Singapore saw a signficant rise in personal bankruptcy applications in 2023, reaching the highest level in 18 years.

With an uncertain economic situation, and rising costs of living and doing business, individuals and small and medium businesses may find it hard to survive. Amid this economic climate, it is now accepted that bankruptcies are a normal part of a framework that allows unfortuate individuals to make a fresh start in their financial afffairs provided that certain rules are met.

Once you decide to file for self-bankruptcy, you are protected from further claims by your creditors.  This gives you some breathing space to reorganise your finances and your life without the constant pressures of debt collectors.

Moreover, when you file for bankruptcy, the fees you pay are about the same as the fees you would have to pay if your creditor had filed for bankrupty proceedings against you.

What is Bankruptcy?

In Singapore, bankruptcy can be initiated voluntarily by the debtor or by creditors through court action. Here’s what you need to know:

• Eligibility: Bankruptcy can be declared if a debtor owes at least S$15,000 and cannot repay the debt.
• Process: Upon declaration, the debtor’s assets (excluding their HDB flat) are liquidated and placed into a bankruptcy estate.
• Management: The bankruptcy estate is managed by the Official Assignee (OA). For significant debts, creditors may appoint a Private Trustee in Bankruptcy (PTIB), usually an accountant or lawyer, to manage the estate.

Why Consider Filing for Voluntary Self-Bankruptcy?

(1) Debt Accumulation Ceases

After a Bankruptcy Order is issued, interest on the debt is halted, effectively freezing your debt at a fixed amount.

(2) Manageable Monthly Repayments

Bankrupt individuals make monthly contributions determined by the OA, considering essential living expenses. This amount is often more reasonable than what creditors previously demanded.

(3) Protection from Legal Action

Creditors cannot start legal proceedings to recover debts incurred before the bankruptcy once a Bankruptcy Order is issued.

Should You File for Voluntary Bankruptcy?

Before making a decision, it’s important to:

• Explore Alternatives: Consider all available options to resolve financial issues, such as negotiating repayment plans with creditors or qualifying for programs like the Debt Repayment Scheme (DRS).
• Assess Impact: Evaluate how bankruptcy will affect your financial future and your family. We help you weigh all potential consequences and benefits.

Filing for bankruptcy proactively may be more beneficial than waiting for a creditor’s action, as it can prevent further interest accrual on your debts.

The Costs of Self-Filing

Regardless of who initiates the process, you will be responsible for the associated costs, including a $1,850 deposit to the Official Assignee and other disbursements. Our legal fees are fixed, affordable, and transparent.

Why Choose PKWA Law?

• Specialised Expertise: We have helped numerous people successfully file for self-filed bankruptcy, ensuring that the process is as smooth and stress-free as possible.
• Fixed, Reasonable Fees: We believe in transparency and affordability, offering fixed, clear fees so you know exactly what to expect without any hidden costs.
• Comprehensive Support: Our services go beyond just filing. We guide you through every step of the bankruptcy process and help you discharge your bankruptcy when eligible.

How We Can Help

• Financial Assessment: We thoroughly evaluate your situation and recommend the best solutions tailored to your needs.
• Exploration of Alternatives: We explore other remedies, such as negotiating with creditors or identifying eligibility for debt management programs.
• Expert Bankruptcy Guidance: If bankruptcy is the right path, we provide comprehensive support throughout the process, including filing and eventual discharge.