{"id":1339,"date":"2024-01-24T17:44:33","date_gmt":"2024-01-24T09:44:33","guid":{"rendered":"https:\/\/www.99.co\/singapore\/glossary\/?p=1339"},"modified":"2024-01-24T17:45:13","modified_gmt":"2024-01-24T09:45:13","slug":"bankruptcy","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/glossary\/bankruptcy\/","title":{"rendered":"Bankruptcy"},"content":{"rendered":"\n

What is bankruptcy in Singapore? <\/strong><\/h2>\n\n\n\n

In Singapore, bankruptcy is defined as a legal process involving an individual or firm that is unable to repay any debt of at least S$15,000. <\/p>\n\n\n\n

How does bankruptcy work in Singapore?<\/strong><\/h2>\n\n\n\n

The General Division of the High Court is the only court that hears bankruptcy applications. <\/p>\n\n\n\n

Once an individual or firm is declared bankrupt, their property will be vested in a court-appointed trustee, who will manage the bankrupt’s financial affairs. All bankruptcy cases are to be handled by private trustees in bankruptcy, with the exception of cases where the Official Assignee considers that there is public interest. <\/p>\n\n\n\n

A person applying to the court for bankruptcy, whether by a creditor against a debtor or by a debtor for themselves, is required to nominate a licensed insolvency practitioner to administer the bankruptcy case.<\/p>\n\n\n\n

How to get out of bankruptcy in Singapore? <\/strong><\/h2>\n\n\n\n

There are two ways in which an individual can get out of bankruptcy in Singapore: annulment or discharge by the High Court or by Certificate of the Official Assignee. Bankruptcy is usually considered a last resort option, and debtors are encouraged to look for alternative solutions to settle their debts before considering applying for bankruptcy.<\/p>\n\n\n\n

How to avoid bankruptcy as a real estate investor?<\/strong><\/h2>\n\n\n\n

Investing in real estate carries inherent risks that, if not approached carefully, can result in financial setbacks and even bankruptcy. It’s crucial to recognise that real estate itself isn’t the direct cause of bankruptcy; rather, it stems from imprudent financial decisions. To flourish as a real estate investor without facing bankruptcy, it is essential to exercise prudence. <\/p>\n\n\n\n

Here are some recommendations to steer clear of financial pitfalls:<\/p>\n\n\n\n