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Questions and Answers
What is the primary role of the Official Assignee in the bankruptcy process?
What is the primary role of the Official Assignee in the bankruptcy process?
Which statement accurately describes the conditions under which an Interim Order may be granted for an Individual Voluntary Arrangement?
Which statement accurately describes the conditions under which an Interim Order may be granted for an Individual Voluntary Arrangement?
What is the deadline for filing Proof of Debt after a bankruptcy order is made?
What is the deadline for filing Proof of Debt after a bankruptcy order is made?
Which of the following statements correctly describes the statutory restrictions placed on bankrupts under the IRDA?
Which of the following statements correctly describes the statutory restrictions placed on bankrupts under the IRDA?
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Which action is part of a bankrupt's duties as per the IRDA?
Which action is part of a bankrupt's duties as per the IRDA?
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What happens to the interim order if a creditor's meeting is summoned?
What happens to the interim order if a creditor's meeting is summoned?
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What is the maximum total liability a debtor can have to qualify for the Debt Repayment Scheme (DRS)?
What is the maximum total liability a debtor can have to qualify for the Debt Repayment Scheme (DRS)?
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Which of the following conditions disqualifies a debtor from entering into a Debt Repayment Scheme within 5 years before applying for bankruptcy?
Which of the following conditions disqualifies a debtor from entering into a Debt Repayment Scheme within 5 years before applying for bankruptcy?
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What does the moratorium during the DRS implementation protect?
What does the moratorium during the DRS implementation protect?
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What is one requirement for a debtor under the DRS concerning previous arrangements?
What is one requirement for a debtor under the DRS concerning previous arrangements?
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Who must be appointed as the trustee in bankruptcy unless the Official Assignee determines otherwise?
Who must be appointed as the trustee in bankruptcy unless the Official Assignee determines otherwise?
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Which factor is NOT considered when determining the trustee's remuneration under IRDA Rule 47?
Which factor is NOT considered when determining the trustee's remuneration under IRDA Rule 47?
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What is the role of the nominee after the creditors' meeting regarding the debtor's proposal?
What is the role of the nominee after the creditors' meeting regarding the debtor's proposal?
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What must be true for a bankrupt's property to vest in the Official Assignee (OA)?
What must be true for a bankrupt's property to vest in the Official Assignee (OA)?
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Which section of the IRDA discusses the annulment of bankruptcy by the court?
Which section of the IRDA discusses the annulment of bankruptcy by the court?
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What is a condition that the court may impose upon the discharge of a bankrupt?
What is a condition that the court may impose upon the discharge of a bankrupt?
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Which provision allows for the possibility of discharge by certificate of the Official Assignee?
Which provision allows for the possibility of discharge by certificate of the Official Assignee?
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When may an Official Assignee declare dividends to creditors?
When may an Official Assignee declare dividends to creditors?
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What is one way a bankrupt may cease being bankrupt according to the IRDA?
What is one way a bankrupt may cease being bankrupt according to the IRDA?
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What can the Official Assignee do if they cannot realize sufficient funds from the estate?
What can the Official Assignee do if they cannot realize sufficient funds from the estate?
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Under which section may the court refuse to discharge a bankrupt from bankruptcy?
Under which section may the court refuse to discharge a bankrupt from bankruptcy?
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Which of the following conditions must be met for a creditor to apply for a bankruptcy order under the IRDA?
Which of the following conditions must be met for a creditor to apply for a bankruptcy order under the IRDA?
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Under what circumstance can a debtor apply for a bankruptcy order as per s308 of the IRDA?
Under what circumstance can a debtor apply for a bankruptcy order as per s308 of the IRDA?
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What is the presumption related to a debtor's inability to pay debts under the IRDA?
What is the presumption related to a debtor's inability to pay debts under the IRDA?
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What is required for debts incurred outside Singapore to be included in a bankruptcy application?
What is required for debts incurred outside Singapore to be included in a bankruptcy application?
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In which scenario can a creditor seek an expedited bankruptcy procedure according to s314 IRDA?
In which scenario can a creditor seek an expedited bankruptcy procedure according to s314 IRDA?
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Which of the following is NOT a ground for making a bankruptcy application under s311 of the IRDA?
Which of the following is NOT a ground for making a bankruptcy application under s311 of the IRDA?
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What does the IRDA specify about a debtor's residence when determining bankruptcy jurisdiction?
What does the IRDA specify about a debtor's residence when determining bankruptcy jurisdiction?
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Which of the following is true regarding the debt amount needed for a bankruptcy application?
Which of the following is true regarding the debt amount needed for a bankruptcy application?
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Study Notes
Bankruptcy Application
- A bankruptcy order may be made by a creditor or the debtor.
- A creditor's application is governed by Section 307 of the IRDA.
- A debtor's application is governed by Section 308 of the IRDA.
Grounds for Bankruptcy Application
- The debt or aggregate debt must not be less than S$15,000.
- The debt must be liquidated and payable immediately.
- The debtor must be unable to pay debts.
- A statutory demand can be used to establish the debtor's inability to pay debts.
- If the debtor fails to make payment within 21 days of receiving the statutory demand, a statutory demand will create a presumption of inability to pay debts.
- If the debt was incurred outside of Singapore, it must be actionable in Singapore.
Statutory Demand
- The form, required information, and service methods for a statutory demand are outlined in IRDA Rules 73, 64, 65, and 66.
- Rule 67 provides the procedure for setting aside a statutory demand.
Expedited Bankruptcy Application
- A creditor can file a bankruptcy application before the 21-day statutory demand period expires if:
- There's a risk that the debtor's assets or value of assets will diminish, and
- The application contains a statement to that effect.
Effects of Bankruptcy Order
- The bankruptcy order will be advertised and published in the Gazette.
- The order takes effect on the date it's made against the debtor and continues until they are discharged.
- The bankrupt's property vests in the Official Assignee.
- Creditors have four months to file proof of debt.
Bankrupt's Duties
- The bankrupt must assist the Official Assignee in identifying and recovering estate assets.
- The bankrupt must file a Statement of Affairs.
- The bankrupt must submit accounts as directed by the Official Assignee.
Bankrupt's Restrictions
- Statutory restrictions apply to bankrupts, including:
- Restrictions related to the bankrupt's property and dealings.
- Restrictions on managing corporations.
- Restrictions on holding certain positions.
Alternatives to Bankruptcy
Individual Voluntary Arrangement (IVA)
- Allows debtors to enter binding agreements with creditors for debt repayment.
- Avoids bankruptcy proceedings.
- Undischarged bankrupts are ineligible for IVAs.
- An interim order may be granted if the debtor intends to make a proposal, the nominee is acceptable, and it will facilitate consideration and implementation of the proposal.
- The nominee will report to the court on whether the creditors approved the proposed IVA.
- If approved, the IVA is implemented. If rejected, the debtor is discharged, and creditors can pursue other options.
Debt Repayment Scheme (DRS)
- Available to debtors with liabilities under S$150,000.
- Debtors must not be bankrupt or in an IVA within five years.
- They must not be subject to, or have been subject to, a debt repayment scheme within the past five years.
- They cannot be sole proprietors, or partners in a firm or LLP.
- A moratorium applies during the DRS implementation period.
- Secured creditors are not affected by the moratorium.
- A certificate of completion is issued once the debtor repays their debts under the plan.
Bankruptcy Administration
- The Official Assignee acts as receiver of the bankrupt's property and administers their affairs.
- A private trustee may be appointed.
- Private trustees are mandatory unless:
- The Official Assignee considers it in the public interest, and
- Consents to be appointed as the trustee.
Trustee's Remuneration
- Trustee remuneration depends on multiple factors:
- Complexity of the case.
- Degree of responsibility assumed by the trustee.
- Effectiveness of the trustee's work.
- Value and nature of estate assets.
Order of Distribution
- Creditors have a set order of distribution of bankrupt's property.
- Certain avoidance provisions apply to the divisible property of the bankrupt.
Dividend Distribution
- The Official Assignee will declare and distribute dividends when sufficient funds are available.
- The Official Assignee may end administration once they've realized as much of the estate as possible without needlessly prolonging the bankruptcy.
Discharge and Annulment
- A bankrupt can cease being a bankrupt in several ways:
- Annulment: By the court or Official Assignee if all debts and expenses are paid or secured.
- Composition or Scheme of Arrangement: Creditors agree to a different repayment plan.
- Discharge: The court can discharge the bankrupt absolutely or with conditions, or refuse discharge.
- Discharge by Certificate of Official Assignee: A differentiated framework exists for first-time bankrupts and repeat bankrupts.
Discharge Through the Official Assignee
- The Official Assignee can issue a discharge certificate with conditions, such as meeting a target contribution.
- Creditors can object to the discharge.
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Description
Test your knowledge on bankruptcy applications under the IRDA, including creditor and debtor procedures. Explore grounds for applications, statutory demands, and regulations guiding the process. Perfect for those studying bankruptcy law and its implications.
