Bankruptcy is a law for the benefit and relief of creditors and their debtors in cases where the debtors are unable or unwilling to pay their debt. Bankruptcy legislation serves a dual purpose:
1. To effect a quick, equitable distribution of the debtors property among his or her creditors.
2. To discharge the debtor from their debt, enabling them to rehabilitate themselves and start afresh.
What is Bankruptcy?Bankruptcy is a Court procedure which, once completed, allows you to avoid paying all or part of your debts, depending upon your financial situation. Depending on the type of bankruptcy you file, there may be a requirement to pay some money to creditors or to liquidate some assets before you can be freed (or "discharged") from your debts.
Will I lose anything if I file for bankruptcy?
Generally, you may file a bankruptcy and retain all of your personal belongings, including your house (HDB), and all household goods. You may be more at risk of losing property if you don't file bankruptcy, as creditors can sue you and attach your bank accounts, garnish your wages and seize your property. As a result, you may miss rent, mortgage or car payments, making it difficult to provide even your most basic necessities.
Who will know about my bankruptcy?
The only parties that receive notice of the bankruptcy are your creditors, the bankruptcy court and the IRAS. Generally, the bankruptcy will have no effect or whatsoever on your taxes. Your employer will not be notified of the bankruptcy unless your employer is also a creditor. The bankruptcy is public record, so anyone who wants to find out could do so through Insolvency checks. Generally, however, only you, your creditors and the IRAS will know about the bankruptcy.
How do I know if I should file for bankruptcy?
Are you being sued?
If you are being sued and you own a home, we will strongly advise you to speak with our counselor immediately about filing a bankruptcy. A bankruptcy will stop a lawsuit immediately and prevent your creditors from placing a line on your home or garnishing your hard-earned wages.
How does Bankruptcy affect my credit history and will it wipe out all of
the debts on my credit report?
If you are already in huge debt and thinking of bankruptcy as a way out, most probably your credit report would not be deemed "healthy". As previously indicated, while the bankruptcy will appear on the credit report for six years, once you begin to re-establish your creditworthiness, you will definitely be on your way to a much better credit record.
As to wiping out all debts on the credit report, one should think of a credit report like a history book. You cannot change history, but you can add to it. Likewise, you can only add to your credit report. Hopefully, the bankruptcy discharge will be the end of the "bad history" and the beginning of the "good history".
1. To effect a quick, equitable distribution of the debtors property among his or her creditors.
2. To discharge the debtor from their debt, enabling them to rehabilitate themselves and start afresh.
What is Bankruptcy?Bankruptcy is a Court procedure which, once completed, allows you to avoid paying all or part of your debts, depending upon your financial situation. Depending on the type of bankruptcy you file, there may be a requirement to pay some money to creditors or to liquidate some assets before you can be freed (or "discharged") from your debts.
Will I lose anything if I file for bankruptcy?
Generally, you may file a bankruptcy and retain all of your personal belongings, including your house (HDB), and all household goods. You may be more at risk of losing property if you don't file bankruptcy, as creditors can sue you and attach your bank accounts, garnish your wages and seize your property. As a result, you may miss rent, mortgage or car payments, making it difficult to provide even your most basic necessities.
Who will know about my bankruptcy?
The only parties that receive notice of the bankruptcy are your creditors, the bankruptcy court and the IRAS. Generally, the bankruptcy will have no effect or whatsoever on your taxes. Your employer will not be notified of the bankruptcy unless your employer is also a creditor. The bankruptcy is public record, so anyone who wants to find out could do so through Insolvency checks. Generally, however, only you, your creditors and the IRAS will know about the bankruptcy.
How do I know if I should file for bankruptcy?
Are you being sued?
If you are being sued and you own a home, we will strongly advise you to speak with our counselor immediately about filing a bankruptcy. A bankruptcy will stop a lawsuit immediately and prevent your creditors from placing a line on your home or garnishing your hard-earned wages.
How does Bankruptcy affect my credit history and will it wipe out all of
the debts on my credit report?
If you are already in huge debt and thinking of bankruptcy as a way out, most probably your credit report would not be deemed "healthy". As previously indicated, while the bankruptcy will appear on the credit report for six years, once you begin to re-establish your creditworthiness, you will definitely be on your way to a much better credit record.
As to wiping out all debts on the credit report, one should think of a credit report like a history book. You cannot change history, but you can add to it. Likewise, you can only add to your credit report. Hopefully, the bankruptcy discharge will be the end of the "bad history" and the beginning of the "good history".
Source from: http://www.debtfreelife.biz/bankruptcy.html
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