Basically, a bankrupt is a person who is officially confirmed by a Court that he is unable to pay off what he owes.

Therefore, a person may face bankruptcy if he owed too much money to the extent that he is unable to meet the payment requirements of his creditors.

In Singapore, a person who owes at least $15,000 may self file for bankruptcy or be sued by the creditor for bankruptcy.

When a person becomes a bankrupt, he is still liable for the debts under his name, and he is expected to make repayment to his creditors. The amount of payment he is supposed to make every month will depend on his income and his living needs.

The Official Assignee (OA) who administers the bankrupt’s case will help the bankrupt to work out a repayment arrangement that is within his capacity to service.  In other words, the amount the bankrupt needs to pay every month now will be lower than the amount he was expected to pay before he was made a bankrupt.

You are encouraged to obtain more information and receive professional advice if you are seriously thinking about declaring yourself bankrupt.

For more information on bankruptcy, please visit - Insolvency Office