Debt Repayment Scheme- Pre Bankruptcy Scheme under Bankruptcy Act (Chapter 20)

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The Debt Repayment Scheme (“DRS”) is a pre-bankruptcy scheme which is administered by the Official Assignee under the Bankruptcy Act (Chapter 20)

It seeks a win-win outcome for both the debtor and His Creditor. Debtors with unsecured debts not exceeding $100,000 will be able to enter into a debt repayment plan (“DRP”) under the DRD with their creditors and avoid bankruptcy, along with its restrictions and social stigma.


The proposed DRP ust ensure that the interests of creditors are adequately safegauarded. These debtors will commit to the DRP and repay their debts over a fixed period of time of not more than 5 years. When the Debtor meets his financial obligations under the DRS, He will be released from his debts and have a fresh start thereafter.



  • A DRP is drawn up
  • Meeting of Creditors
  • DRP is approved



  • Court, debtor and applicant-creditor will be notified of Debtors unsuitability for DRS
  • Court will Continue to hear the bankruptcy application

Commencement of Debt Repayment Plan


Debtor complies with his statutory obligations,under the Bankruptcy Act and completes all repayments in accordance with the,terms of the DRP Debtor fails to comply with his statutory obligations under the,Bankruptcy act and /or does not make repayments and/or does not comply with,the terms of the DRP Debtors liabilities exceeds $100,000 after commencement of DRP
OA issues a certificate of
OA issues a certificate of failure OA Issues a certificate of
Debtors creditors may initiate fresh bankruptcy proceedings against,the debtor Debtors creditors may initiate fresh bankruptcy proceedings against,the debtor

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