Bankruptcy in Singapore
The acuteness in the disparity of resource distribution and the endowment has seen Singaporean citizens fall on both extremes of the balance. While some drown in wealth in riches, there is still a lot that capsizes in abject poverty. That is to the point of being declared bankrupt. Bankruptcy is being in a condition that a person owes more money than they can pay back. While this may sound like just a theory, almost 25000 Singaporeans had been declared bankrupt in 2011. This just means that these individuals were virtually off the economic cycle of exchange.
One can file for bankruptcy if they owe $10000 or more to others and have no way of repaying this. However, these conditions will have to be reviewed by the court. This is done within 4 to 6 weeks, the filing will then be granted if it is genuine. The court may also commence proceedings and declare a person bankrupt if it is pretty evident it’s the situation they are in.
Troubles then start dribbling in after one has been declared bankrupt in Singapore. The following nightmares start becoming a reality:
1. Seizure of assets
Like a pack of enthusiastic scavengers, the creditors’ pawn on the property of the individual declared bankrupt. The court allows them access to these belongings. These people will then cherry pick what they can auction or use to recover part or all of their money. They cannot, however, take away necessities from the individual and their families. Possessions that a bankrupt person may be holding in trust for another person. In addition to that, his or her tools of the trade which is anything the person would require to continue with their jobs.
2. A statement of affairs
The individual continues to work but a portion of their salary has to be remitted to the creditors. They will also have to prepare and present a statement of affairs for any amount that they are left with.
3. The public and employers are informed
The declaration is advertised so that everybody can search and find that out. This further ruins the creditworthiness of a person. While also killing any hopes of career advancements. Some occupations like banking may result in termination of jobs.
4. Impaired credit ratings
Even after clearance and discharge of the bankruptcy declaration, the individual’s credit rates remain crippled for up to seven years with no guarantee of improvement. This is probably why once declared bankrupt one can never actually become productive again.
5. Prohibited overseas travel
Unless it is work related trips, an individual declared bankrupt will seldom get approval to travel out from the courts. Bankruptcy must always seek a permit to travel overseas. Going out without a license is punishable by two year incarceration upon return.
Assuming none of the creditors objects, a person’s bankruptcy declaration may be revoked after three years. Credit Cancelling Singapore then guides the person through an intensive credit repair process. The statement can be seen as a reset button that enables a person to retrace their steps and do it right.
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