Trends on Duration to Exit Bankruptcy from 2010 to 2025 and Possible Review of Bankruptcy Laws

Mr Saktiandi Supaat asked the Minister for Law (a) what is the average and median time taken for Singaporeans to exit bankruptcy between (i) 2010 and 2015, (ii) 2016 and 2020 and (iii) 2020 and 2025; (b) how do the figures differ if we only considered first-time bankrupts; and (c) whether a review of Singapore's bankruptcy laws is due since the last round of significant reforms in 2015.

The mean and median times taken for Singaporeans and Singapore Permanent Residents to be annulled and discharged from bankruptcy between (a) 2010 and 2015, (b) 2016 and 2020, and (c) 2020 and 2025 are tabulated below. The median and mean durations in bankruptcy have come down in the latest five-year period.

There is negligible difference in the mean and median times when repeat bankrupts are excluded.

The 2015 reforms, which introduced the Differentiated Discharge Framework, came into force on 1 August 2016. In 2023, we transited to a regime where all new bankruptcies now come under the administration of private trustees, except where there is a public interest reason for the Official Assignee to consent to act as trustee.

The Debt Repayment Scheme is currently being reviewed to prevent its misuse, particularly by debtors who may be guided by third-party consulting firms to borrow irresponsibly, and subsequently apply for bankruptcy.

The Ministry of Law will continue to work with stakeholders to maintain a rehabilitative bankruptcy regime that balances the interests of debtors and creditors.