Relief for financially distressed individuals and businesses

As highlighted by Minister for Law, K Shanmugam, in the Solidarity Budget 2020 speech on 7 April 2020, there will be a new bill targeted to help relief for individuals and businesses under section 144 of the Bankruptcy Act.

For individuals, there will be an increment of debt repayment scheme to cover up to $250,000 as compared to previously $100,000 with conditions of the amount owed by the individual being a minimum of $100,000.

For businesses, there will be an increment for companies who are in debt for insolvency purposes to the amount of $100,000 instead of $10,000 previously.

The new bill will act in the context of debts that were incurred during this COVID-19 period, for which temporary measures apply.

businesses