This is from the Singapore Ministry of Law Insolvency Office – the bankruptcy restrictions look harsh for Hong;
2. Restrictions as a Bankrupt With the making of a BO, a bankrupt is subject to the following restrictions:
a) Cannot deal with property A bankrupt cannot sell, transfer or give his property away as the property vests in the trustee. Any actions taken by the bankrupt on his property will be deemed ineffective.
b) Cannot travel or stay overseas without trustee’s permission A bankrupt is not allowed to travel or remain outside Singapore without the prior permission of the trustee. A bankrupt should therefore submit his application electronically for the permission to travel or stay overseas, with supporting documents to the trustee for the trustee’s approval.
The outcome of a bankrupt’s application for permission is dependent on whether the bankrupt is regular with the payment of his monthly contributions and the level of co-operation that the bankrupt provides to the trustee. A bankrupt should only travel after he is informed by his trustee of the approval.
c) Cannot start or continue legal action in courts without trustee’s permission Other than matrimonial proceedings or legal actions for damages for personal injuries, a bankrupt cannot start, continue or defend any court action without obtaining prior permission from his trustee.
d) Cannot obtain credit without disclosing bankruptcy status A bankrupt is not allowed to obtain credit of $1,000 or more without revealing his bankruptcy status to the person granting the credit.
e) Cannot act as trustee or personal representative without permission of Court A bankrupt is automatically disqualified from being appointed or acting as a trustee or personal representative in respect of any trust, estate or settlement without the permission of the Court.
f) Cannot act as a director of a company or be involved in the management of a business without permission A bankrupt cannot act as a director or manager of any corporation, limited liability partnership, limited partnership or business, except with the written permission of the Court or the trustee. If the bankrupt is a director or involved in the management of any corporation and has not obtained such permission, the Accounting and Corporate Regulatory Authority will remove his name from the business entity.
Failure to comply with any of these restrictions may constitute an offence punishable on conviction (with fine, imprisonment or both). By acting responsibly, cooperating and complying with the duties and restrictions of a bankrupt, a bankrupt may be recommended by his trustee for discharge from bankruptcy when he is found to be eligible.
3. Responsibilities of a Bankrupt In the course of his bankruptcy, a bankrupt must do the following:
a) File the “Statement of Affairs” A bankrupt must submit his “Statement of Affairs” within 21 days from the date of the BO. In this statement, the bankrupt must truthfully disclose everything he owns (assets) and owes (liabilities). A bankrupt must not submit wrong or false information.
b) Make contributions to pay off debts A bankrupt must start a debt repayment plan to pay off his creditors. The trustee will discuss with the bankrupt and determine the monthly contribution that the bankrupt needs to pay into his bankruptcy estate.
For bankrupts with BOs made on bankruptcy applications filed on or after 1 August 2016, a Target Contribution1 will be determined by the trustee and made known to the bankrupt at the beginning of the bankruptcy. The bankrupt will be eligible for discharge if he pays the Target Contribution in full.
c) Surrender assets to the trustee A bankrupt must surrender his assets to the trustee when instructed to do so. These assets will be sold by the trustee and the proceeds remitted to the bankruptcy estate to pay his creditors.
d) Comply with Bankruptcy Laws A bankrupt must comply with the duties and restrictions in bankruptcy. Failure to comply may constitute an offence punishable under the Bankruptcy Act.
e) Cooperate with the trustee’s directions A bankrupt must cooperate with his trustee. For example, a bankrupt is required to submit a periodic statement of moneys and property received as advised by the trustee.
If the bankrupt maintains satisfactory conduct and contributes regularly to the bankruptcy estate to meet the repayment plan or Target Contribution, the trustee will be able to recommend his discharge from bankruptcy sooner.
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