Kvwinbkk wrote: They are still paying for their HDB home but probably will not be able to pay off the remainder of the mortgage before they both retire.
Firstly I would like to ask you where did they attain their mortgage , thru HDB or the local banks. If it the former then if your FIL is declared bankrupt , no creditors can take the HDB house away, if it the latter, debt from bank or financial institution can go to the court to get an injunction to sell the HDB house to recover their debt. Personal debt taken out from these avenues has alot of ramification as the liabilities are attached to personal wealth. Under the mortgage instrument first right of ownership is the bank not YOU until you have settled all debts. Thanks to Mah Bow Tan all new ownership of HDB house has to get bank loan Not HDB loans as it is no longer offered
I'm trying to find out a few things. First of all, can my mother in law be held accountable for my father in law's debt?
It depends if your MIL is the co signatory of the guarantor then she is liable. If not only FIL is liable for debt
Secondly, if my father in law is declared bankrupt, what are the consequences? Would they lose the house?
As I have answered you above, the scenarios are there. Under Chap 11 or Chap 13 forced or voluntary bankruptcy, the former will have more leeway than the latter as OA will take over your personal wealth. Remember bankruptcy goes to individual no one else
What other ramifications does bankruptcy hold in Singapore?
All his personal wealth will be sold to recover the loss. His traveling will need permission from the Registrar. He cannot and will never be able to own even a credit card nor any big ticket items
Finally, is there a way to take away all financial responsibility from my father in law?
There are budgeting services and social workers that can help. SOS is one of them
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