Credit Counselling
A good resource if you are seeking help to manage your debt is Credit Counselling Singapore (CCS).
CCS’s programmes promote the responsible use of credit and money management through education.
A major objective of the organisation is to help consumers recover from serious debt problems by
providing general credit management information, credit counselling and, where possible, put up a
debt repayment plan for suitable consumers.
For more information on CCS, please refer to the CCS website.
Debt Repayment Scheme
A last resort for people who are having debt problems is to declare bankruptcy. Bankruptcy is a
process where someone who can’t pay his debt is publicly recognised to be insolvent. The
Court usually appoints the Official Assignee (OA) to administer the bankruptcy estate which includes
selling of assets, registration of creditors’ claims and paying out dividends to his
creditors.
This can be highly traumatic for the individual.
But from May 18, 2009, a Debt Repayment Scheme (DRS) to help people avoid bankruptcy started
operating in Singapore. Under DRS, a person with liabilities of less than $100,000 who is
employed and earning a regular income may avoid bankruptcy by proposing and sticking to a
debt repayment plan.
Debtors under the scheme will be expected to repay as much of their debt as possible from
their income. They may also have to realise their assets - sell their car, for example -
and make other adjustments to their lifestyle. Generally, debtors should complete repayment
within three to five years under the supervision of the OA, who may also
modify the repayment plan to ensure the interests of debtors and creditors are adequately
considered.
Should a debtor be dishonest, fail to cooperate with the OA or not comply with
the terms of the plan or his duties under DRS, the OA may issue a certificate
of failure that will allow creditors to initiate fresh bankruptcy proceedings. |
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