The Debt Repayment Scheme (DRS) in Singapore

The Debt Repayment Scheme, or DRS, is a way for a person with a steady income and manageable debts to repay creditors over time and avoid bankruptcy. It is supervised by the court and the Official Assignee, and it produces a fixed repayment plan. This guide explains who qualifies, the important fact that you cannot apply for it directly, and what completing the plan achieves.

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

What the DRS is

The DRS is a pre-bankruptcy arrangement created by the Insolvency, Restructuring and Dissolution Act 2018. Instead of being declared bankrupt, a suitable debtor repays an agreed portion of their debts under a Debt Repayment Plan managed by the Official Assignee. If the plan is completed, the debtor is released from the debts covered by it, and no bankruptcy order is made.

The attraction is that the DRS avoids the lasting restrictions and public record of bankruptcy. It is aimed at people whose problem is a temporary inability to pay a moderate level of debt, not those with very large or business debts.

Who is eligible

The eligibility criteria are cumulative, meaning all of them must be met. Drawing on the Insolvency Office's own DRS guidance and section 316(9) of the Act, a debtor generally qualifies only if:

• Their total debts do not exceed S$150,000.
• They are gainfully employed and earning a regular income.
• They have not been a bankrupt, and have not been on a DRS, within the last 5 years.
• They have not been subject to a court-approved voluntary arrangement within the last 5 years.
• They are not a sole proprietor or a partner in a firm.

The S$150,000 figure is worth a note. The Act itself does not state a number: sections 289 and 316 refer only to debts not exceeding "the prescribed amount", which is set by regulation. The current prescribed figure, stated by the Insolvency Office, is S$150,000. Because it is set by regulation rather than the Act, it can change without a new Bill, so confirm the current threshold before relying on it.

Why you cannot apply for the DRS directly

This is the point that surprises most people. There is no application form you can submit to enter the DRS on your own. Under the Act, the DRS becomes available only after a bankruptcy application has already been filed in the High Court, whether by a creditor or by the debtor.

If, at that stage, the qualifying criteria appear to be met, the court can adjourn the bankruptcy application for 6 months, or another period it directs, and refer the matter to the Official Assignee to assess whether the debtor is suitable for the DRS. In other words, the route into the DRS runs through a bankruptcy application and a court referral, not through a direct request.

How the plan works

Once the case is referred, the Official Assignee reviews the debtor's situation. The debtor provides a Statement of Affairs setting out income, expenses, assets and debts. The Official Assignee then determines suitability, calls a meeting of creditors, and approves a Debt Repayment Plan, with or without modification.

The plan sets out how much the debtor will pay and over what period. Under sections 290 and 291 of the Act, the repayment period cannot exceed 5 years. Unlike the debt ceiling, this 5-year cap is stated directly in the statute, so it is a firm maximum. A debtor or creditor who considers the approved plan unfairly prejudicial can appeal to an Appeal Panel, whose decision is final.

What happens at the end

If the debtor keeps to the plan and completes it, they are released from the debts that were admitted under the scheme. No bankruptcy order is made, and the debtor avoids the restrictions that bankruptcy would have brought.

If instead the debtor is found unsuitable, or the plan fails, the case returns to court and the bankruptcy application can proceed. That is the natural consequence of the DRS being a branch off the bankruptcy process rather than a standalone remedy.

Where the DRS fits

The DRS is best understood alongside the alternative. Read the personal bankruptcy guide to see what the DRS is designed to avoid, and the debt and bankruptcy section for the full picture of the routes available. If the immediate problem is pressure from a collector, see dealing with debt collectors.