Bankruptcy and Work permit etc

[adrienalla]

I used to work in Spore, but left after a few years. Was a PR but this expired and recently due to loss of job and other challenges, I may be sued for bankruptcy by Singapore banks.

As a foreigner now living overseas, how will this affect me if one day I want to look for a job in Singapore again. Will I be able to get an work permit again?

Also if I am declared bankrupt, can I enter Singapore for vacation or visiting friends? Will I be stopped at the airport and not allowed to enter or worse arrested?

[Mad Scientist]

I used to work in Singapore, but left after a few years. Was a PR but this expired and recently due to loss of job and other challenges, I may be sued for bankruptcy by Singapore banks.


Have you been issued by the Court and assigned an OA on chapter 11 or 13 of the bankruptcy act. ? How much did you owe the bank/s on the credit car / personal loan / hire purchase ?

As a foreigner now living overseas, how will this affect me if one day I want to look for a job in Singapore again. Will I be able to get an work permit again?

Yes, it will affect you if the sentencing was passed without your presence hence the bank/s has won over your case. Did you do a runner?


Also if I am declared bankrupt, can I enter Singapore for vacation or visiting friends? Will I be stopped at the airport and not allowed to enter or worse arrested?

I do not think so but if your debt is over the mountain then it is a different ball game or you are involved in fraud.

[adrienalla]

Have not been living or working in Spore now over 5 years but held on to credit cards...total probably 30k. Now the banks decided since i no longer live or work in Singapore, they want full payment which I cannot do.

They are threatening to take legal action, so far do not know if it has been done. So if they did a court case and I am not there to represent myself, they can win the case in my absence?

MY concern is I may have a job offer in Singapore and this will affect if I can get a work permit. Also if I managed to get a work permit, it looks like most of the salary will go into paying off the debts.

[BillyB]

Have not been living or working in Singapore now over 5 years but held on to credit cards...total probably 30k. Now the banks decided since i no longer live or work in Singapore, they want full payment which I cannot do.

They are threatening to take legal action, so far do not know if it has been done. So if they did a court case and I am not there to represent myself, they can win the case in my absence?

MY concern is I may have a job offer in Singapore and this will affect if I can get a work permit. Also if I managed to get a work permit, it looks like most of the salary will go into paying off the debts.

Check your credit file to see exactly what the status is of the debts - http://www.creditbureau.com.sg/

Once you know what has been filed and what the status is, get in touch with your creditors and try to work something out if you want to return here.

[adrienalla]

Thank you, will check the file. Meanwhile if I do not get the job or decide not to pursue and I am declared bankrupt by the banks, can I still enter Singapore as a visitor? My worry is if I am barred for entering or stopped from leaving. Does this ever happen?

I am not a big time criminal, political dissident or owe a huge amount of money. Does this count whether ICA will restrict me? I am worried about this part, I have my family to think off.

[Mad Scientist]

Have not been living or working in Singapore now over 5 years but held on to credit cards...total probably 30k. Now the banks decided since i no longer live or work in Singapore, they want full payment which I cannot do.

They are threatening to take legal action, so far do not know if it has been done. So if they did a court case and I am not there to represent myself, they can win the case in my absence?

MY concern is I may have a job offer in Singapore and this will affect if I can get a work permit. Also if I managed to get a work permit, it looks like most of the salary will go into paying off the debts.

That is quite a large amount of debt and that does not include interest accrue on top of the original debt. If the banks in SG has already located your overseas address, rest assured they will come after you by getting a court order at your residence country. Once the court accept the claims of the lawyer representing SG Banks, you are done for.
I have seen it happened time and time again.
ICA only deals with the immigration part. MOM deals with the employment part but if a court judgement has been ruled against you, IMHO, finding a job will be hard and you cannot get any credit card nor banks wanting to do anything with you. IF I am not wrong it will be sent to the police database too.
TO enter SG as a visitor personally I do not see an issue as you are a foreigner not local nor PRs but I could be wrong here

[JayCee]

I have my family to think off.

Maybe you should have thought of them before you ran up debts of 30K which you have no intention of paying off

[Strong Eagle]

Have not been living or working in Singapore now over 5 years but held on to credit cards...total probably 30k. Now the banks decided since i no longer live or work in Singapore, they want full payment which I cannot do.

Have you been making the required minimum monthly payment, that is, are you in compliance with the payment terms of your credit card? Have you exceeded the credit limit?

I can find no requirement in my CC terms and conditions (UOB) that I be resident in Singapore. And, it does say that if I am over the credit limit, the whole amount may be called due, although the payment section calls for a payment of the minimum amount plus the excess over the credit limit.

My point is that if you are in payment compliance, the banks would probably let you continue to pay, especially if you are not using the card. However, if you have run up charges and have not paid... not so good.

[adrienalla]

I have been paying the bills every month until end of last year when I lost my job, so have some months unpaid. Did not exceed the credit limit, just cannot pay the minimum payment and now that I cannot pay, the banks closed my accounts citing non-payment as well as the fact that I am not residing or working in Singapore, I am not entitled to a credit card. So they demand full payment.

Am trying to work out an installment plan with them. Let's see how that will go. Thanks for all your responses.

[Strong Eagle]

The banks will always demand payment in full. And they will back off if some kind of a plan is put together. They don't want you in bankruptcy court, either, as unsecured debt may not be worth 100 cents on the dollar.

[Mad Scientist]

I have been paying the bills every month until end of last year when I lost my job, so have some months unpaid. Did not exceed the credit limit, just cannot pay the minimum payment and now that I cannot pay, the banks closed my accounts citing non-payment as well as the fact that I am not residing or working in Singapore, I am not entitled to a credit card. So they demand full payment.

Am trying to work out an installment plan with them. Let's see how that will go. Thanks for all your responses.

@adrienalla; I did some research for you. Obviously from your info, they have not file any Chap 11 against you unless I am wrong here

I am no expert here but the banks always win when you default on your repayment.
Either you negotiate with them for repayment OR voluntarily declare bankrupt on yourself . This will be give you more time rather than they drop the axe on you by getting a court order where they can seize all possession from you.
Having said that this falls under Civil Proceeding NOT Criminal if you are worried about being stopped by border control
Read this

Pre-insolvency Arrangements

11.9.5 An unsecured creditor or one whose security is unenforceable or lacking in priority may prefer to avoid the consequences of insolvency proceedings (where no or minimal recovery of sums owed is possible) and negotiate for some private compromise or arrangement with the debtor. Such private settlements are governed by the usual contractual principles.

11.9.6 Where private negotiations fail, an individual debtor may wish to come up with proposals for a voluntary arrangement between itself and its creditor. The procedure for coming to a voluntary arrangement and the period of moratorium on bankruptcy application, enforcement of security, execution and other legal proceedings against the individual debtor are governed by Part V of the Bankruptcy Act (Cap 20, 2000 Revised Ed).

11.9.7 A corporate debtor may wish to apply for judicial management of its business in order to rehabilitate its business with the purpose of effecting a more beneficial realisation and distribution of its assets to its creditors. The procedure by which this is done and the period of moratorium on winding up application, enforcement of security, execution and other legal proceedings against the corporate debtor is governed by Part VIIIA of the Companies Act. A corporate debtor may also present a scheme of arrangement with its creditors under Section 210 of the Companies Act. Such a scheme of arrangement will become binding on its creditors if it is approved by a majority in number representing at least 75% in value of the creditors present and voting at a meeting and confirmed by the Court.

Insolvency Proceedings

11.9.8 As a final resort, a creditor or financier may wish to commence insolvency proceedings against the debtor. Bankruptcy proceedings against the individual debtor are governed by the Bankruptcy Act. Winding up proceedings against a corporate debtor are commenced pursuant to section 254 of the Companies Act and generally governed by Part X of the Companies Act.

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Updated as at 9 March 2009


By: Loo Wee Ling
Practice Assistant Professor, School of Law
Singapore Management University

[hotsoupboy]

So Did you eventually manage to return back to Singapore as a Visitor after the banks came after you to declare you bankrupt ?

I guess you are back living and working in your home country already right ?

[Mi Amigo]

So Did you eventually manage to return back to Singapore as a Visitor after the banks came after you to declare you bankrupt ?

I guess you are back living and working in your home country already right ?

This thread has been dormant for more than 2.5 years, so you may not get an answer to your question above. Why don't you tell us your circumstances and then we will do our best to advise you.

[hotsoupboy]

I am also preparing to file for bankruptcy, however, I would not be working in Singapore, instead I will be working and living in my home country.

I understand that as a bankrupt, I am to apply for travel permission with the OA before I can leave the country. What I am concern is how willing are they in approving my application since I am working to repay my debts (which is beneficial to my creditors.)?

I want to slowly pay back my debts as I would still want to return to Singapore for visitation even though I am prepared to renounce my PR. As you can see, I am just trying to do it legally and not abscond from my debts, just that I think I would find more moral support in my home country, which definitely can help me in getting my career back on track.

Also after filing for bankruptcy, i suppose the interests will stop running on my loan amount right ?

So Did you eventually manage to return back to Singapore as a Visitor after the banks came after you to declare you bankrupt ?

I guess you are back living and working in your home country already right ?

This thread has been dormant for more than 2.5 years, so you may not get an answer to your question above. Why don't you tell us your circumstances and then we will do our best to advise you.

[willsg1]

@hotsoupboy - I understand that you will just need to show your overseas letter of appointment to the OA. Also you may want to note that only Singaporean/PR has the option to file for bankruptcy petition as a debtor whilst the non-SG/PR do not have such option but to wait for the creditor to sue for bankruptcy. This is based on some info that I know of. Hope it helps.

I am also preparing to file for bankruptcy, however, I would not be working in Singapore, instead I will be working and living in my home country.

I understand that as a bankrupt, I am to apply for travel permission with the OA before I can leave the country. What I am concern is how willing are they in approving my application since I am working to repay my debts (which is beneficial to my creditors.)?

I want to slowly pay back my debts as I would still want to return to Singapore for visitation even though I am prepared to renounce my PR. As you can see, I am just trying to do it legally and not abscond from my debts, just that I think I would find more moral support in my home country, which definitely can help me in getting my career back on track.

Also after filing for bankruptcy, i suppose the interests will stop running on my loan amount right ?

So Did you eventually manage to return back to Singapore as a Visitor after the banks came after you to declare you bankrupt ?

I guess you are back living and working in your home country already right ?

This thread has been dormant for more than 2.5 years, so you may not get an answer to your question above. Why don't you tell us your circumstances and then we will do our best to advise you.