Debt and Bankruptcy in Singapore

Falling behind on what you owe is stressful, but Singapore law sets out clear routes for both debtors and creditors, and clear limits on what a debt collector may do. This section is an overview of three topics: personal bankruptcy, the Debt Repayment Scheme, and dealing with debt collectors. Each has its own detailed guide linked below.

This is general legal information, not legal advice. Consult a qualified advocate and solicitor about your situation. Information last verified on 23 July 2026.

The law that governs debt and insolvency

Personal insolvency in Singapore sits under the Insolvency, Restructuring and Dissolution Act 2018, usually shortened to the IRDA. It came into force on 30 July 2020 and consolidated the old Bankruptcy Act and the corporate insolvency laws into a single statute. When older guidance or a court form still refers to the Bankruptcy Act, it is the IRDA that now applies.

Two formal outcomes are possible for an individual who cannot pay. The first is bankruptcy, a court process that hands control of the debtor's assets to a trustee. The second is the Debt Repayment Scheme, a lighter, court-supervised repayment arrangement that can avoid bankruptcy altogether. Both are run by the Official Assignee, a public officer at the Ministry of Law Insolvency Office.

Personal bankruptcy

Bankruptcy is the process by which a court declares that a person cannot pay their debts and appoints a trustee to take charge of their assets. A creditor can apply, but so can the debtor. The debtor must generally owe at least S$15,000 before an application can be made, and a creditor must first serve a formal 21-day statutory demand.

Bankruptcy brings restrictions on borrowing, travel and running a business, and it does not last forever. For a first-time bankrupt the law sets discharge tracks of 3, 5 or 7 years depending on the contribution paid and any creditor objection. The personal bankruptcy guide explains the threshold, the process and the discharge timeline in full.

The Debt Repayment Scheme

The Debt Repayment Scheme, or DRS, is designed for a debtor who has a regular income and whose debts are not too large. If the debts do not exceed S$150,000 and the other criteria are met, a court can refer the case to the Official Assignee, who works out a repayment plan of up to 5 years. Completing the plan releases the debtor from the debts covered by it, without a bankruptcy order.

One point catches many people out: you cannot apply for the DRS directly. It becomes available only after a bankruptcy application has been made and the court refers the matter. The Debt Repayment Scheme guide sets out the eligibility rules and how the referral works.

Dealing with debt collectors

Chasing an unpaid debt is lawful, but the way it is done is regulated. Since 1 December 2023 the Debt Collection Act 2022 has required debt collection businesses to be licensed. Threatening, abusive or intimidating conduct can be an offence under the Protection from Harassment Act 2014, and harassment by an unlicensed moneylender, a loan shark, is a much more serious offence under the Moneylenders Act 2008.

You can check whether a debt collection company is licensed, and you can make a police report if you are threatened or harassed. The debt collectors guide explains the licensing regime and your protections.

Where to start

If a creditor is threatening court action, start with the bankruptcy guide to understand the threshold and the statutory demand. If you want to repay over time and avoid bankruptcy, read the Debt Repayment Scheme guide. If the problem is the conduct of a collector, the debt collectors guide sets out what is and is not allowed.