2,334 people in S'pore filed for bankruptcy in 1st half of 2024, 25% more than 2023

2,334 people in Singapore have filed for bankruptcy in the first six months of 2024 alone, with the number increasing by 25 per cent compared to the same period in 2023.

According to recent data by the Ministry of Law (MinLaw), the number of undischarged bankrupts stood at 9,903, reflecting an increase of 2.4 per cent.

Numbers increased

Between January and June 2024, 2,334 people have applied for bankruptcy.

The number increased by 25 per cent compared to 2023.

594 people were then declared bankrupt, reflecting an increase of 11 per cent since 2023.

The highest recorded number of bankruptcy applications is 430 in May 2024, followed by 409 in January 2024.

In contrast, the number of bankruptcy applications in May 2023 was 314, while the record high for the first half of 2023 was 356 in March 2023.

According to MinLaw, there were 9,903 undischarged bankrupts as of Jun. 30.

This is 2.4 per cent more than the recorded number of undischarged bankrupts as of Jan. 31, which stood at 9,669.

The number of bankruptcy orders also rose, recording a total of 595 for the first half of 2024.

On the other hand, the number of bankruptcy orders made in the same period for 2023 was 537.

Applying for bankruptcy, debt repayment programmes

A bankruptcy can be filed by a debtor or creditor in the High Court, according to MinLaw.

To file for bankruptcy, the debtor must have incurred at least a total of S$15,000 in unpaid debts.

Those who wish to submit a Bankruptcy Application must pay a deposit of S$1,850 to the Official Assignee for the administration of the bankrupt's estate.

The deposit will not be refunded to a bankrupt who has applied for his own bankruptcy, but may be recovered by their creditor if there are sufficient funds in the bankrupt's estate.

The case will also be assessed if it is suitable for the Debt Repayment Scheme (DRS) instead, which is a programme by MinLaw that to help debtors avoid bankruptcy.

However, the programme is only accessible through the bankrupt's creditor.

The DRS is also only extended to employed bankrupts who have a total debt of up to S$150,000.

Bankrupts may also consider additional support such as the Bankruptcy Support Programme (BSP) by the Credit Counselling Singapore, which helps the bankrupts and their families in their financial recovery journey.

Bankrupts may also seek assistance to be discharged from insolvency with their records removed.

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