S'porean woman, 48, in S$220,000 debt, withdraws insurance policy & cashes out, had only S$7 in bank when she filed for bankruptcy

A 48-year-old Singaporean woman who had debts exceeding S$220,000 was sentenced to one week's jail after she secretly withdrew her insurance policy and cashed out before filing for bankruptcy.

Shin Min Daily News reported that Ang Ai Peng then spent the money on her personal expenses.

She only had about S$7 in her bank account by the time she officially declared bankruptcy and had not repaid any of her creditors at the time.

Charges, lawsuit

Charge sheets seen by Mothership stated that Ang faced three charges of violating the Insolvency, Restructuring and Dissolution Act.

She pleaded guilty to one charge, with the other two taken into consideration during sentencing.

Prior to this, three creditors had previously filed lawsuits against Ang, Shin Min reported.

It added that the State Courts ruled on Jun. 23, 2020, that Ang was to repay a total debt of almost S$226,000, plus interest at an annual rate of 5.33 per cent, as well as court costs of S$1,800.

Cashed out insurance policy

However, Ang had already processed her insurance policy, which she cashed out on May 26, 2020.

This allowed her to receive a check of around S$2,531, according to Shin Min.

Despite knowing she was heavily in debt, Ang cashed out money multiple times in June 2020 during the trial, Shin Min reported.

Instead of using the money to repay her debts, she used it for personal expenses.

Declared bankruptcy

Ang also failed to declare the insurance refund in the statement of assets when she filed for bankruptcy on Aug. 11, 2020.

Shin Min reported that she had not repaid any money by Sep. 10, 2020, when the court declared her bankrupt.

It added that by Oct. 12, 2020, she only had S$7 left in her bank account, and to date, has reportedly not made any repayment from the bankruptcy assets.

In pleading for leniency, Ang, who was walking with a limp, said her father had just passed away in January 2026, and only her mother was left at home, Shin Min reported.