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What is Bankruptcy?
Bankruptcy is a legal status declared upon a person when they are unable to pay off their debts. If a person owes someone $15,000 which is payable immediately and is unable to repay, a bankruptcy lawyer in Singapore would explain, such a person is declared bankrupt.
What are the Benefits of Filing for Bankruptcy Voluntarily?
There are certain benefits if a person files for bankruptcy voluntarily. The bankruptcy regime in Singapore with a reliable bankruptcy lawyer Singapore can be aimed to help both the debtor and the creditor stabilize their finances.
- No more accumulation of debt
- Lower monthly repayments
- No more legal proceedings
Why Should You Seek Professional Help?
In Singapore, a debtor who owes—even with the help of a business bankruptcy lawyer—and cannot repay debts of at least $15,000 can voluntarily file for bankruptcy. By filing bankruptcy proceedings in court, the debtor’s creditors can also try to declare the debtor bankrupt. When you notice that you can’t keep up with your payments and responsibilities, bankruptcy may be the first thing that comes to mind. It may be the best option for you. However, finding an affordable bankruptcy lawyer in Singapore, understanding your alternatives, how the bankruptcy process works, and how it will affect you and your family before filing bankruptcy are of the utmost importance.
What is the Minimum Amount to File for Bankruptcy?
For the High Court to declare someone bankrupt, certain criteria must be fulfilled. The debtor must owe an amount of at least $15,000 to the creditor, which is due immediately, and he is unable to repay.
What are the Other Requirements to File for Bankruptcy?
Section 310(1) of the Insolvency, Restructuring, and Dissolution Act 2018 (IRDA), states that the debtor must fall into either one of these categories.
- The debtor is domiciled in Singapore.
- The debtor has property in Singapore.
- The debtor has had a place of residence in Singapore for at least one year.
- The debtor has been an ordinary resident in Singapore for at least one year.
- The debtor has carried on business in Singapore for at least one year.
In such situations, consult a bankruptcy lawyer Singapore for professional advice and support. They can guide you in the right direction and help prevent further legal complications.
Understanding the Role of Bankruptcy Lawyers
Why is Engaging a Lawyer a Better Option?
A lawyer is a professional who specializes in different areas of law. Because the law is such a broad discipline, most professional attorneys focus on one or two important areas, such as Bankruptcy Law, Intellectual Property, Family Law, . From conveyancing to civil lawsuits, they handle all elements of the legal practice. As a result, they are well-versed in the law, can represent their clients in court, and choose the best course of action in a legal issue.
A bankruptcy lawyer in Singapore understands the broad spectrum of law, since they specialize in selected areas like Bankruptcy Law, Intellectual Property, Family Law, Commercial Law, and Securities Law. Having expertise from practicing in diverse segments of the legal realm (from conveyancing to civil lawsuits), they guide clients aptly in legal matters, represent them in court, and outline the most suitable course of legal action.
Who is a Bankruptcy Lawyer?
Bankruptcy lawyers are professionals with expertise in handling bankruptcy cases. They offer valuable legal advice, help prepare essential legal paperwork, represent clients during court proceedings, and assist in navigating the Debt Repayment Scheme (DRS).
How can a Bankruptcy Lawyer in Singapore Advise you?
A bankruptcy lawyer can provide advice and guidance on the following critical matters:
- Whether bankruptcy filing is your best course of action?
- Which type of bankruptcy you should file?
- Understanding the complex procedure for filing bankruptcy.
- Sorting and filling the necessary court forms.
- Discerning which debts might be reduced or eliminated.
- Inquiring about whether you can keep your property, car, or other valuable assets post-bankruptcy.
Without the aid of a business bankruptcy lawyer, you might make legal mistakes with significant financial consequences.
Essential Documents for Bankruptcy Filing
The following documents are indispensably required for filing bankruptcy. Engaging a bankruptcy lawyer in Singapore will make obtaining these documents easier:
i) Debtor’s Bankruptcy Application
ii) Statement of Affairs (declaration of assets, liabilities, current occupation, monthly expenses, and more)
iii) Affidavit supporting Debtor’s Bankruptcy Application
iv) Affidavit validating Statement of Affairs
Necessity of a Bankruptcy Lawyer for Self-Bankruptcy Filing
Employing the services of a bankruptcy lawyer can be crucial for a variety of reasons. If you’re not comfortable handling your case independently, find the process overwhelming, or are burdened by exhaustive paperwork, a business bankruptcy lawyer can provide indispensable assistance. They can also serve as a buffer between you and persistent debt collectors.
What are the Disadvantages of Filing for Bankruptcy Without a Lawyer?
Undertaking bankruptcy filing devoid of a bankruptcy lawyer in Singapore may expose you to several risks. These include inexperience in legal proceedings, errors in legal document completion, and failure to comply with court deadlines.
What Services to Expect from a Bankruptcy Lawyer?
A good bankruptcy lawyer offers:
- An introductory consultation to better understand the complexity of your predicament.
- Suggestions on various alternatives like the type of bankruptcy to be filed.
- Assistance with the tasks relative to bankruptcy-related paperwork.
- Representation in court once the case proceeds there.
In essence, a reliable affordable bankruptcy lawyer in Singapore ensures you have a hassle-free journey through this complicated process.
Identifying the Need for a Bankruptcy Lawyer and Understanding the Debt Repayment Scheme (DRS)
What are the Indicators that You Need a Bankruptcy Lawyer?
Facing financial adversity is challenging. It may become prudent to consult a bankruptcy lawyer under certain circumstances. These indications may include:
- Only able to make minimum payments on overdue bills.
- Maxed out credit cards and continually increasing debt.
- Resorting to credit cards to cover daily expenses including rent, groceries, and utilities.
- Regularly incurring overdraft fees.
- Being constantly contacted by collections agencies.
- Facing lawsuits or threats from creditors due to unpaid debts.
- Ineligibility for debt-relief services such as debt consolidation.
- Experiencing major life events such as job loss, divorce, or health issues that critically affect your financial situation.
Catching these early signs can provide an opportunity to mitigate the situation with the expertise of a bankruptcy lawyer.
What is a Debt Repayment Scheme (DRS)?
The Debt Repayment Scheme (DRS) serves as an alternative to bankruptcy in Singapore. It is a repayment plan regulated by a Court-designated Official Assignee (OA). Contrary to bankruptcy, under DRS, the debtor’s property is neither repossessed nor liquidated by OA. Instead, OA functions to assess the debtor’s eligibility, supervise and regulate activities, monitor payments, and maintain compliance with legal responsibilities.
How can a Lawyer Help with the Process of DRS?
A lawyer can significantly streamline your journey through the DRS:
- Aid in respecting the terms of the repayment plan and schedule.
- Collaborate with OA and help in filing requisite legal paperwork.
- Inform OA regarding changes in your circumstances potentially impacting your repayment abilities.
- Ensure OA is continually updated about your whereabouts and contact information.
- Facilitate your attendance at meetings with OA and creditors.
- Help you adhere to all other legally imposed duties of debtors under the DRS.
Engaging a bankruptcy lawyer’s expertise can significantly assuage the stress of navigating such high-stakes financial predicaments effectively and legally.
