Over 3,000 Have Applied for Bankruptcy Protection in Singapore

As the global economic downturn continues, some Singaporeans are starting to feel the financial heat locally. Bankruptcy cases for the year have already exceeded the total from last year, with 3,380 cases being logged so far for 2022, according to a report by Channel News Asia on Dec. 23

The current count of those who went in bankruptcy protection exceeded each of the past two pandemic-laden years, with most cases involving small-to-medium enterprises (SMEs). This total, however, is still fewer than those logged in 2019, right before the spread of coronavirus worldwide.

When an entity, be it a person or a business, is granted bankruptcy protection, they will get their debts frozen and legal proceedings against them will be halted. Regardless, amortisations determined by a private entity (e.g., a creditor or debtor approved by the court) or an Official Assignee will continue despite the asset protections afforded by bankruptcy law.

According to the Ministry of Law, less than 1,000 people have been released from bankruptcy this year as more and more are struggling to pay off their existing debt. On the other hand, the businesses that have filed for bankruptcy are unable to refinance their loans.