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MinLaw plans to raise bankruptcy debt threshold to S$15,000
The Ministry of Law (MinLaw) on Friday said it plans to increase the bankruptcy debt threshold to S$15,000 from S$10,000, as part of proposed amendments to the Bankruptcy Act.
The threshold - which takes into account the effects of inflation - was last revised in 1999.
"This amendment seeks to encourage debtors and creditors to resolve debts falling below the threshold, without resorting to the formal bankruptcy process. This will help such debtors to avoid the inconveniences and stigma associated with bankruptcy," MinLaw said in a statement.
It also plans to mandate the appointment of private trustees for defined "institutional creditors", and to introduce a framework such that bankrupts can be discharged within clear time frames.
MinLaw is seeking views and feedback on the proposed amendments to the Bankruptcy Act. The consultation period is from Jan 16, 2015 to Feb 24, 2015.