$3.3B Rollover Credit Card Debt in Peesai & Growing FAST!

[zhihau]

becuz the parents of these parents did not send them for education

i believe education is compulsory, at least for lower levels... and financial management isn't in the syllabus!

i say don't wait for schools to teach wealth management, the parents should learn how to manage their wealth and pass on that knowledge, if they can't, their children would have to learn to pick up wealth management on their own thru' trial and error. that's all :p

 

[borom]

I really do not understand your immature stupid logic.....Crap logic. get real.....

I accept differences in opinion and believe that's the reason why we post here-to express our views, no matter from which angle.

However I do not understand what you meant by immature,stupid or crap logic.

What I know is that the logic of an argument can be
•InConsistent-meaning the theorems of the argument contradict one another.
•Not Sound-meaning that the argument contains a false inference or premise.
•InComplete-meaning that there are no true sentences that can be proven.

I will appreciate therefore if you can point out which part is inconsistent, Not sound or incomplete.

 

[zhihau]

I accept differences in opinion and believe that's the reason why we post here-to express our views, no matter from which angle.

However I do not understand what you meant by immature,stupid or crap logic.

What I know is that the logic of an argument can be
•InConsistent-meaning the theorems of the argument contradict one another.
•Not Sound-meaning that the argument contains a false inference or premise.
•InComplete-meaning that there are no true sentences that can be proven.

I will appreciate therefore if you can point out which part is inconsistent, Not sound or incomplete.

heheh...

take it easy bro, from what i can gather, i take the presumption that numero uno simply meant this: the Government isn't really responsible for the peasants' spending habits, and the Government isn't really responsible for the banks' operational objectives. the banks want profits, the peasants pay for their habits. yah, i hope i got it right :p

 

[nextinfidel]

>>>>banking executive Lily Lim, 30,relationship manager
her credit card debts mounted to $75,000 and she was unable to pay even the minimum sums

Private banker ya? how much to bang her in a black power suit, white blouse, white bra, black miniskirt white panties with skin-colored pantyhose and white high heels on her Director's desk in the office?

once a bankrupt, you cannot get a job in a bank.

>>>>This group of people to protest soon?

I don't mind if they sit out at MAS building. I shall go and look at their faces and LV bags.

>>>Earning 10K and still can chalk up 75K in debts

thats the problem. earn so much you think you are financially infallible.

>>>>what are the authorities doing about this?

you think the PAP chiam the banks or chiam these pathetic pieces of shit, sporting $400 hairdos, carrying LV bags,using the latest HP and driving Subaru WRXs??

If the banks goes bankrupt, why should those honest savers and depositors lose their money because of all these fuckers?

>>>>BANKRUPTCY or MONTHLY REPAYMENTS? The choice is yours
But if you are reckless, you do not fall into this category.

I think if you are reckless and declare bankrupt, you still have to pay them back.

>>>>i cannot feel any pity for anyone who spend lavishly then say credit card company are blood suckers. They deserved it when kenna hound by credit collection companies. Nobody put a knife at their throats and force them to spend. Spend shiok shiok then cannot pay, where got so good one?

You'll find lots of these people in your office right now. believe it or not.

>>>Why don't the parents edcuate the children?

the parents are the same extravagant lot. just look at the number of cars on the road.

>>>>her love of Louis Vuitton and luxury holidays overseas,

ppl in my office goes for honeymoon 3 weeks. spend 5 digit figures.

Thank you.

 

[funglung]

you're right, and SM Goh would be very worried if no one got retrenched in Singapore...

Dont let Goh be worried.


RETRENCH THAT USELESS BASTARD GOH
STOP HIM FROM ENRICHING HIMSELF WITH OUR MONEY

VOTE ALL THOSE PAP BASTARDS OUT

RETRENCH ALL THOSE BLOODSUCKERS

 

[lolabunny]

>>>>banking executive Lily Lim, 30,relationship manager her credit card debts mounted to $75,000 and she was unable to pay even the minimum sums

Private banker ya? how much to bang her in a black power suit, white blouse, white bra, black miniskirt white panties with skin-colored pantyhose and white high heels on her Director's desk in the office?

Thank you.

Your sexual fantasy is very specific. You should pay an FL to get it off your rocks.
:p:p:p

Why white panties not black? Why flesh coloured pantyhose not black?

 

[borom]

Are There Loopholes in the Credit Card Act?
CCS Opinions

Today President Obama signed the Credit Card Act of 2009, the most sweeping change to hit the industry since the first 60,000 credit cards were dropped in California mailboxes 50 years ago. The changes go into effect in nine months.
But all too often with consumer laws, key provisions can be watered down at the last minute. We decided to call some consumer advocates and legal experts to see if there are any loopholes or blurred ink in the act (aka H.R. 627).
“This doesn’t solve all of the problems,” says Pamela Banks, senior policy counsel for the Consumers Union. “But it’s a great start.”

Much to the astonishment and joy of consumer advocates, many of the key provisions stayed intact to the end. Among the key victories:

Over-the-limit fees: Issuers cannot charge over-the-limit fees on credit cards unless the consumer has authorized going over the limit. Once the law takes effect, the consumer has the right to choose whether or not to go over the limit when making a purchase.

Interest-rate payments: Any payment above the minimum applies first to the balance with the highest rate. This used to be the opposite, leaving some consumers in repayment purgatory for years and years.

Disclosure: Card companies, under the new regulations, must spell out more clearly how long it will take cardholders to repay debt.

These consumer victories might explain why card companies are scrambling to cope with billions in potential losses. Although the Federal Reserve passed less-sweeping regulations last year, and most financial institutions saw new laws coming, issuers are still likely to impose new fees for things that had been traditionally free.

Overall, advocates are ecstatic about the reforms. But there were some things left out that they’re continuing to fight for:
A cap on interest rates. A cap as low as 15% was discussed, but Ms. Banks says that 36% is more likely. While that sounds high, she says a mathematical formula was used to determine that as the cap.
An earlier implementation date. Earlier versions of credit-card reform would have forced implementation within three months rather than the current nine months.
Stronger student-lending provisions. The new law’s student-lending provisions, which deal with how younger consumers can access credit cards, still leave some authority to the Federal Reserve Board to interpret the law, says Travis Plunkett, legislative director of the Consumer Federation of America.
The Center for Responsible Lending took a look at what banks have done since the Fed proposed the first wave of regulation at the end of 2008 to what banks are doing now. They found, as have many of our readers, that credit limits are being slashed, fees for cash advances and foreign transactions are up, among others. These practices will be banned when the Fed regulations and the Card Act go into effect.
Under the new rules, card issuers must give customers a 45-day notice about any changes, including a slash in their credit limit.
Consumer advocates say that this is a good time to shop around for a better card. Consider smaller banks or credit unions that may be more eager for your business. Also, start getting in the habit of checking your mail. A lot of these changes in terms may look like promotional offers from the outside.
But until the rates go into effect, expect more rate cuts, more fees and more mayhem from your issuer. We’re already hearing from wider swaths of customers, including those who have never missed a payment or carried a balance, who are being burned. Please keep us posted on any of the fine print or changes with your credit cards. We’ll try and do the same.

http://blogs.wsj.com/wallet/2009/05/22/are-there-loopholes-in-the-credit-card-act/

Another blow to the greedy and immoral financial sectors.Citi is probably the biggest issuer of cards worldwide and lets see how it will be afected.
Birds of the same feathers flocked together and we all know which sovereign funds have been buying and losing billions of taxpayers monies investing into these cheats .

 

[Mdm Tang]

Another blow to the greedy and immoral financial sectors.Citi is probably the biggest issuer of cards worldwide and lets see how it will be afected.
Birds of the same feathers flocked together and we all know which sovereign funds have been buying and losing billions of taxpayers monies investing into these cheats .

))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))


Business Times - 06 May 2009

Debt Repayment Scheme to take off this month A DEBT Repayment Scheme (DRS) to help people avoid bankruptcy will start operating on May 18, after Parliament approved amendments to the Bankruptcy Act in January to introduce the scheme.
Under DRS, a person with liabilities of less than $100,000 who is employed and earning a regular income may avoid bankruptcy by proposing and adhering to a debt repayment plan.
Debtors under the scheme will be expected to repay as much of their debt as possible from their income. They may also have to realise their assets - sell their car, for example - and make other adjustments to their lifestyle.
Generally, debtors should complete repayment within 3-5 years under the supervision of the Official Assignee (OA), who may also modify the repayment plan to ensure the interests of debtors and creditors are adequately considered.
Should a debtor be dishonest, fail to cooperate with the OA or not comply with the terms of the plan or his duties under DRS, the OA may issue a certificate of failure that will allow creditors to initiate fresh bankruptcy proceedings.
Besides repaying creditors, debtors under DRS will have to undergo financial education that will emphasise the importance of discipline.
The Insolvency and Public Trustee's Office says about 42 per cent of existing bankrupts had liabilities of less than $100,000 when they were made bankrupt.
Based on this, it expects up to 1,300 debtors to be considered for DRS annually.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.



++++++++++++++++++++++++++++++++++++++++++++++++++++++++++


Print Article



May 6, 2009
Repayment plan to help debtors avoid bankruptcy
By Serene Luo
PEOPLE facing bankruptcy proceedings for debts under $100,000 will get a new lifeline from May 18.
The Debt Repayment Scheme, approved by Parliament in January, kicks in then.
The High Court, which hears bankruptcy petitions, can decide to put debtors on the scheme instead.
If they are, they will not be declared bankrupt.
They will, instead, have to come up with a plan to repay their debts within five years. Creditors will receive no less than if the person had been made bankrupt.
An average of 3,200 people have been declared bankrupt each year for the past five years.
About 40 per cent of them owed less than $100,000 and could have been considered for the scheme had it been in place, said a spokesman for the Ministry of Law.
The plan was mooted to help wage-earners repay their debts, and keep the number of bankrupts down. There are 26,606 bankrupts here now.
The scheme aims to give those on it a better chance of getting back on their feet, particularly as they are unlikely to lose their jobs and sources of livelihood if they are not declared bankrupt, the spokesman said.
Self-employed people, current undischarged bankrupts and those who have been discharged within the past five years cannot go on the scheme.
Those on the plan will face fewer restrictions than bankrupts do. They will not need official permission to travel overseas, nor will they have to disclose their financial status if they want to apply for credit for sums of more than $500, for example.
They can also be trustees of estates or directors of companies, unlike bankrupts.
But if they do not cooperate or are dishonest, administrators can kick them off the scheme, and fresh bankruptcy applications can be made against them.
Creditors contacted welcomed the scheme. Said OCBC Bank's group chief credit officer Joseph Wong: 'Debtors will be able to avoid the stigma of bankruptcy and have a fresh start in their lives.'
Creditors, who will be paid with part of the debtor's monthly salary, will also get a fair shake, others added.





+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

 

[singveld]

Miss Lily Lim debt more than $90000
Miss X debt more than $288000

Wow. that is an expensive pussy. To marry these pussy, you got to have cash meh. cash, no cash no pussy.
Just by signing the paper in ROM, your saving account instantly drop down by a huge amount. why bother saving hard and blow it all away for a pussy?

 

[Mdm Tang]

+++++++++++++++++++++++++++++++++++++++++++++++++++++++


Dear all i and my friends have many credit cards and credit lines

from banks and in recessions times now we cannot pays...

are there any GOVT Agency we can turn to ??? Please i already know

about CCS .... Are there any other GOVT Agency ???? please help..

Bankers are calling me and friends non stop from morning 9 am to

evening 6pm sometimes till 8 pm .... Please help us all brothers here ...


+++++++++++++++++++++++++++++++++++++++++++++++++++++++


May 29, 2009
PARLIAMENT
Social services to go 'ground up'
Vivian proposes new structure to put VWOs in charge of delivering assistance to those in need
By Sue-Ann Chia
DR VIVIAN Balakrishnan wants to change the structure of social services to be more ground up, so that the people in charge 'are truly the voluntary welfare organisations (VWOs) on the ground'.
This will shift the 'centre of gravity' from the National Council of Social Service (NCSS) to the VWOs, the Minister for Community Development, Youth and Sports said in Parliament yesterday.

To do this, he has asked the NCSS - the umbrella body of social services which sets the direction and provides funding for the sector - to learn from the labour movement. Its model is one where unions on the ground are independent with members voting for their leaders. But the National Trades Union Congress (NTUC) acts as a central repository of resources and manpower, he said.

The NTUC, Dr Balakrishnan added, also has the economies of scale to train industrial relations officers and post them to individual unions. In adopting this approach, he gave the assurance that the NCSS would be there 'not to check on them, not to audit them'. It would instead serve as 'a central enabler, to achieve economy of scale, give promotional and training opportunities to the staff of the VWOs, and slowly in that way, enable us to upgrade the centres'.

He was speaking during the debate on the President's Address, which mapped out the Government's priorities for its remaining legislative term.

Several MPs who spoke during the debate raised concerns about government help schemes, with some saying that more can be done during this downturn. Others wondered if Singaporeans were becoming over-reliant on the Government - by turning to it for help in the first instance rather than as a last resort.

 

[shelltox]

She is the govt's favourite daughter, the more she spent, the more GST is collected.She may earned 100000 a year , her GST would be 8400 if she spent all her income. But with her credit card, her spending was $288,000 contributing almost 21k to the GST coffers.

 

[Meltdown]

TILL late last year, banking executive Lily Lim, 30, was living the high life, visiting fancy restaurants and splurging four-figure sums on frequent holidays and shopping sprees. Then as her expenses sprinted past her income, the relationship manager thought she would become a property agent to cash in on the building boom.

The gamble failed.
The property market stagnated suddenly. And her monthly income, which, buoyed by commissions, could touch $10,000 at the bank, plunged to $1,200.
By April, her credit card debts mounted to $75,000 and she was unable to pay even the minimum sums.
'I was in despair,' said the business degree holder who approached Credit Counselling Singapore to seek advice on how to rein in her debts.
'I had no idea you could go from boom to bust so soon.'

This proves that financial advice given by bank relationship managers are worthless. In fact, their advice will ruin their clients' financial health.

 

[singveld]

This proves that financial advice given by bank relationship managers are worthless. In fact, their advice will ruin their clients' financial health.

did you notice she said that she went from boom to bust very quickly. what kind of boom she have? she overdraft on her credit cards and that was boom according to her? when did borrow money from bank became BOOM. From her spending, it is bust to bankruptcy.

bankers, they should be hang on tree. For giving us shit advice, their advice based on their bonuses not what best for customer.

 

[jw5]

did you notice she said that she went from boom to bust very quickly. what kind of boom she have? she overdraft on her credit cards and that was boom according to her? when did borrow money from bank became BOOM. From her spending, it is bust to bankruptcy.

bankers, they should be hang on tree. For giving us shit advice, their advice based on their bonuses not what best for customer.

Waste of a good tree.

 

[pivilion]

We need more ppl like her to spur the economy!

 

[Mdm Tang]

))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))


Business Times - 06 May 2009

Debt Repayment Scheme to take off this month A DEBT Repayment Scheme (DRS) to help people avoid bankruptcy will start operating on May 18, after Parliament approved amendments to the Bankruptcy Act in January to introduce the scheme.
Under DRS, a person with liabilities of less than $100,000 who is employed and earning a regular income may avoid bankruptcy by proposing and adhering to a debt repayment plan.
Debtors under the scheme will be expected to repay as much of their debt as possible from their income. They may also have to realise their assets - sell their car, for example - and make other adjustments to their lifestyle.
Generally, debtors should complete repayment within 3-5 years under the supervision of the Official Assignee (OA), who may also modify the repayment plan to ensure the interests of debtors and creditors are adequately considered.
Should a debtor be dishonest, fail to cooperate with the OA or not comply with the terms of the plan or his duties under DRS, the OA may issue a certificate of failure that will allow creditors to initiate fresh bankruptcy proceedings.
Besides repaying creditors, debtors under DRS will have to undergo financial education that will emphasise the importance of discipline.
The Insolvency and Public Trustee's Office says about 42 per cent of existing bankrupts had liabilities of less than $100,000 when they were made bankrupt.
Based on this, it expects up to 1,300 debtors to be considered for DRS annually.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.



++++++++++++++++++++++++++++++++++++++++++++++++++++++++++


Print Article



May 6, 2009
Repayment plan to help debtors avoid bankruptcy
By Serene Luo
PEOPLE facing bankruptcy proceedings for debts under $100,000 will get a new lifeline from May 18.
The Debt Repayment Scheme, approved by Parliament in January, kicks in then.
The High Court, which hears bankruptcy petitions, can decide to put debtors on the scheme instead.
If they are, they will not be declared bankrupt.
They will, instead, have to come up with a plan to repay their debts within five years. Creditors will receive no less than if the person had been made bankrupt.
An average of 3,200 people have been declared bankrupt each year for the past five years.
About 40 per cent of them owed less than $100,000 and could have been considered for the scheme had it been in place, said a spokesman for the Ministry of Law.
The plan was mooted to help wage-earners repay their debts, and keep the number of bankrupts down. There are 26,606 bankrupts here now.
The scheme aims to give those on it a better chance of getting back on their feet, particularly as they are unlikely to lose their jobs and sources of livelihood if they are not declared bankrupt, the spokesman said.
Self-employed people, current undischarged bankrupts and those who have been discharged within the past five years cannot go on the scheme.
Those on the plan will face fewer restrictions than bankrupts do. They will not need official permission to travel overseas, nor will they have to disclose their financial status if they want to apply for credit for sums of more than $500, for example.
They can also be trustees of estates or directors of companies, unlike bankrupts.
But if they do not cooperate or are dishonest, administrators can kick them off the scheme, and fresh bankruptcy applications can be made against them.
Creditors contacted welcomed the scheme. Said OCBC Bank's group chief credit officer Joseph Wong: 'Debtors will be able to avoid the stigma of bankruptcy and have a fresh start in their lives.'
Creditors, who will be paid with part of the debtor's monthly salary, will also get a fair shake, others added.





+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++





Business Times - 15 Jun 2009


Gentler debt rap slows bankruptcy petitions

All eyes on scheme that offers unchanged prospects to creditors, is easier on debtors

By SIOW LI SEN

(SINGAPORE) Ever since a new scheme to deal with debtors kicked in on May 18, banks are believed to be filing fewer bankruptcy petitions.

That is because they are assessing how the debt repayment scheme (DRS) works - and what it can do for them - instead of taking the extreme legal route.

Before this, anyone who owed a debt of more than $10,000 faced the shadow of bankruptcy and the stigma that it carries. Now, another door has opened as anyone with a debt of up to $100,000 can be dealt with under DRS - in which he can be given a repayment plan of 3-5 years, without the bankrupt label.

This has immediately made banks step back and take stock. It has also resulted in a drop in bankruptcy petitions.

'From 18 May to 7 June 2009, the High Court received 90 bankruptcy applications, of which 43 (48 per cent) involved debts less than $100,000,' said an Insolvency & Public Trustee's Office (IPTO) spokeswoman.

This is a significant drop from the period before DRS kicked in. Between January and April this year, bankruptcy petitions have ranged between 243 to 296 a month.

Observers say that since DRS applies to debts of up to $100,000, it may effectively have raised the ceiling for bankruptcy applications from $10,000 to 10 times that amount.

For those who owe up to $100,000, the High Court may adjourn a bankruptcy petition for up to six months and refer the case to the Official Assignee (OA) for the OA to assess the debtor's eligibility for DRS, the spokeswoman said.

As at June 7, some 14 cases have been referred to the OA for assessment.

'(Since May 18), I have noticed a distinct and noticeable drop for (bankruptcy) cases between $10,000 and $100,000,' said Tan Keh Whoo, director, Advent Law Corp.

Said Nanan Waluja, Citibank Singapore credit operations director: 'It is too early to assess or form conclusions on the impact of the debt repayment scheme, as it has been just three weeks since its implementation on 18 May.

'However, in principle, we fully support this move by the Ministry of Law, and will make any assessment on a case-by-case basis.'

All banks contacted by BT said that taking legal action was a last resort and that they support the DRS scheme. Others felt that banks would wait to see how DRS turned out.

'I think there may be some misunderstanding or misconception on the part of both creditors and debtors on the DRS,' said Leong Sze Hian, president of the Society of Financial Service Professionals.

'Creditors may be holding back because they want to wait and see what exactly happens to the first cases that come up.'

Under DRS, the debtor is given a repayment plan of between three and five years. The repayment plan is administered by the Official Assignee, similar to the existing bankruptcy regime.

The key difference is that under DRS, a debtor avoids the bankrupt label which has dire consequences. Many employers, for example, have a policy of sacking employees who have been made bankrupt. Bankrupts also need to seek permission before going abroad. A debtor who is dealt with under DRS does not suffer such inconvenience.

For creditors, on the other hand, there are not many changes under DRS - except for holding out the threat of bankrupting the debtor.

'Under the DRS, creditors would receive no less than what they would have otherwise received had the debtor been made a bankrupt,' said the IPTO spokeswoman.

Debts proved and included under DRS are paid in the same priority as debts under the Bankruptcy Act, she said.

For example, income tax and CPF monies are repaid first. Commercial entities rank lower in payment priority.

This means that some banks may be reconciled to getting back as little as 5-30 per cent of what they are owed.

Still, one lawyer said that one reason for banks suing recalcitrant debtors was that many paid up at the onset of legal action, simply to avoid being bankrupted.

That is why there are more bankruptcy petitions than bankruptcy orders. In 2008, the number of bankruptcy orders was 2,327, about 21 per cent lower than the petitions.

Some observers wonder if DRS, with its higher ceiling, will increase irresponsible financial behaviour.

At a radio talkshow on the issue last month, Mr Leong said that some of the feedback was that 'debtors may spend with less worry of being made bankrupt'.

He pointed out though that debtors can still be made bankrupt if they fail to pay their dues within the 3-5-year repayment period that DRS offers. So, creditors had little to lose.

'For debtors, for many, it may just be a delay in being made bankrupt eventually,' he said.

The government had said earlier that about 42 per cent of bankrupts had debts of less than $100,000 when they were made bankrupt. The average number of bankrupts per year has been about 3,200 over the past five years. Based on these numbers, the government expects up to 1,300 debtors to be considered for DRS every year.



Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.







+++++++++++++++++++++++++++++++++++++++++++++++++++++++++

 

[tonychat]

By April, her credit card debts mounted to $75,000 and she was unable to pay even the minimum sums.
'I was in despair,' said the business degree holder who approached Credit Counselling Singapore to seek advice on how to rein in her debts.

Study so much but financially illiterate, what a shame, somemore study business, did she balance the wrong sheet?

 

[Mdm Tang]

Print Article



June 21, 2009
New scheme is turning out to be a LIFESAVER
Fewer bankruptcy applications since start of plan to help people repay troublesome debts
By Francis Chan
A new scheme designed to help people repay troublesome debt already appears to be reducing the number of bankruptcy applications here. Since the Debt Repayment Scheme (DRS) kicked off just over a month ago, banks have been thinking twice before taking the ultimate measure against recalcitrant debtors. They would rather find a middle path using the DRS, although some banks may initially be watching to see how the new system plays out. This, of course, is good news for those struggling to make debt repayments or who have been living in fear of becoming a bankrupt. The introduction of the DRS is timely, indeed, given the fallout from the financial market and economic turmoil, as many workers lose their jobs or face pay cuts. Experts in bankruptcy law and financial planning that The Sunday Times spoke to say that if DRS is not abused, it can prove to be a helpful tool in assisting both debtors and creditors. Bankruptcy brings with it social embarrassment and also dire legal consequences for individuals and families. For example, many employers have a policy of sacking staff who have been declared bankrupt. Bankrupts also need permission from the Official Assignee (OA) before travelling abroad. Observers say they have noted a marked drop in bankruptcy filings since the DRS got under way. Under the scheme, which started on May 18, the High Court can refer debtors who owe less than $100,000 to the Insolvency and Public Trustee's Office (IPTO) to be considered for the DRS. If a debtor is employed and earning a regular income, he may now be able to avoid bankruptcy under the DRS. The IPTO, however, must first determine if he is suitable for the scheme, which involves drawing up a repayment plan, for instance. Before the DRS was introduced, anyone owing a debt of more than just $10,000 could legally be made a bankrupt and suffer the inevitable social stigma. With the DRS, the IPTO can now help debtors owing less than $100,000 devise a repayment plan to pay their debts over a fixed period of time, typically between three and five years, without being labelled a bankrupt. Official figures show that from May 18 to June 7 - just three weeks into the scheme - bankruptcy applications to the High Court fell to 90, of which 43 involved debts under $100,000. This is a significant drop from January to April this year - the period before DRS kicked in - when applications had sometimes spiked to almost 300 cases a month. Experts like Mr Andrew Chan, a partner at law firm Allen & Gledhill, said it is still too early to see any long-term trend despite the dip in filings. 'Early indications, however, are that creditors, including financial institutions, are reviewing the impact of the DRS and the early figures indicate that there is a drop in the number of bankruptcy filings,' he said. Many observers like him believe that banks are still adopting a wait-and-see attitude towards the DRS, and so they are filing fewer bankruptcy applications. Mr Leong Sze Hian, president of the Society of Financial Service Professionals, said creditors such as banks will want to see what the DRS can do for them - instead of taking the ultimate legal route. He said: 'Creditors may be holding back because they want to wait and see what exactly happens to the first cases that come up.' Most observers, however, applaud the scheme for its relevance, especially in the current economic climate. But they caution that the DRS should not be seen as a way to avoid bankruptcy; it should instead be viewed as a contingency tool in debt management. 'DRS would be good for people who don't owe a lot, for example not more than $100,000. They may not be made a bankrupt, so they don't have the problem where they cannot own any assets, and can travel only with permission,' said Mr Leong. 'But at the same time, debtors may also end up spending with less worry of being made bankrupt.' Retirement expert Anne Tay said bankruptcy does not benefit either the debtor or creditor, reinforcing the importance of DRS as a solution to debt repayment. 'It is in the interests of all parties, both debtors and creditors, for an individual to pay back the liabilities as quickly as possible,' said Ms Tay, a vice-president in wealth management at OCBC Bank. 'The DRS, being a debt repayment plan, seems to be a good alternative since bankruptcy applications will be withdrawn if a debtor is found suitable for the scheme.' Mr Leong said creditors stood to benefit even if the DRS did not work out in a given case. 'When a debtor fails to pay up during the three to five year repayment period, the debtor can still be made bankrupt,' he said. 'So, in all likelihood, creditors may still recover even more in the long run, while for debtors, it may just be a delay in being made a bankrupt.' Mr Leong's remarks drive home the point of how crucial it is for debtors not to abuse the scheme and take DRS as a escape route out of bankruptcy. After all, when Parliament approved amendments to the Bankruptcy Act last January, to introduce the DRS, it was to provide a 'non-court-based approach that gives the debtor a reasonable opportunity to pay off his debts over a period of time'. The cap of $100,000 in debt was not arbitrarily pulled out of a hat but is based on historical data on debtors and the amounts they typically owe. Figures from the Law Ministry at the time showed that about 42 per cent of bankrupts had less than $100,000 in debt when they were declared so. The average number of bankrupts per year was about 3,200 over the past five years. And based on those figures, the IPTO - which is the body charged with running the DRS - says about 1,300 debtors may be considered for the DRS every year. Under the DRS, the IPTO aims to help achieve an outcome that will help both debtors and creditors. IPTO believes that in suitable instances, DRS can serve as an alternative to bankruptcy, helping an employed debtor avoid losing his or her job. Debtors can also expect to have help from the IPTO in terms of devising a plan or schedule to repay as much of the debt as possible with his income. The repayment plan or process may include a realisation of the debtors' assets and adjustments to lifestyle. The debtor will also be required to propose a debt repayment plan, which must be approved by the OA and typically be completed within three to five years under the OA's supervision. [email protected]

 

[Mdm Tang]

[


++++++++++++++++++++++++++++++++++++++++++++++++++



June 21, 2009
What being bankrupt means
LAWYERS say the new Debt Repayment Scheme (DRS) gives debtors more freedom to deal with their assets and personal affairs, as compared to a bankrupt. But being declared a bankrupt is not just about owing debts. It essentially means a debtor is insolvent and his status as a bankrupt becomes public information. According to the Law Ministry, when a person is declared a bankrupt, he is publicly recognised to be insolvent and, as a result, is subject to restrictions under the Bankruptcy Act. For example, in order to pay back his debts, the bankrupt is required to give to the Official Assignee, or OA, part of his income every six months, after deducting his family's expenses. He also cannot leave Singapore without the permission of the OA or a court. In addition, he cannot act as a director of a company or take part in the management of a company, except with the permission of a court. 'The individual may also not be able to hold certain positions,' said Mr Andrew Chan, a partner at law firm Allen & Gledhill. These include a public accountant, a lawyer, a Member of Parliament or even to act as a trustee without the court's permission. Mr Chan said with the DRS, debtors will hopefully be able to avoid the stigma of bankruptcy and its 'disabilities'. Besides the inconvenience and embarrassment, bankrupts are also not allowed to set up new CPF Investment Scheme deposit accounts at banks. 'As an undischarged bankrupt, an individual will not be able to use his CPF funds for investment,' said Ms Anne Tay, vice-president for wealth management at OCBC Bank. 'If the individual has previously used his CPF monies to invest, he can continue to hold on to his investments, but he will not be allowed to make new ones.' Ms Tay also explained that if the bankrupt sells off his existing investments, the proceeds will be credited into his CPF Investment Account. However, some funds of these debtors remain protected from creditors. She said: 'One point to note is that an individual's CPF investments and cash balance in his CPF Investment Account are protected from creditors' or the OA's claims, as long as they remain within the CPF Investment Scheme.'






Print Article



June 21, 2009
Debt Repayment Scheme (DRS)
What's the difference between repaying my debts under the DRS and being declared a bankrupt?A bankrupt is legally and publicly acknowledged to be insolvent. As a bankrupt, you will also be subject to various legal restrictions such as on overseas travel, the commencing of legal action and obtaining credit. A debtor accepted under the DRS may not be subject to those same restrictions. How do I as a debtor become eligible for the DRS?A bankruptcy application must be made to the court and, where the debts owed are less than $100,000, as a debtor, you will be referred to the Insolvency and Public Trustee's Office (IPTO) for the Official Assignee (OA), who will consider your suitability for the scheme. You must be employed and earning a regular income and cannot be a sole proprietor or a partner in a business. You also must not have been an undischarged bankrupt before, have previously been on the DRS, or have entered into a voluntary arrangement with your creditors in the five years before the date you are being considered for the scheme. Is there a specific deadline for repaying my debts through DRS?Generally, repayment should be completed within three to five years. What if I fail to comply with the terms of the repayment plan under DRS?The OA may issue a Certificate of Failure and your creditors may initiate fresh bankruptcy proceedings against you. When will I know if I am found suitable for the DRS?If you are referred by the court to IPTO, the hearing of the bankruptcy application will be adjourned for up to six months for the OA to assess your suitability for the DRS. IPTO will inform you and the court, and your creditor, of the outcome of the assessment before the end of the period of adjournment. Where can I find out more about DRS?You may e-mail your enquiries to IPTO at [email protected] or visit its website at www.ipto.gov.sg

 

[Mdm Tang]

The Straits Times

By Melissa Sim

CREDIT card debt hit an estimated $3.4 billion last December, the highest for that month in 20 years. More people have also sought help in settling their outstanding bills.

Going by figures from the Monetary Authority of Singapore, the number of credit cards rose 11 per cent in the last year, but rollover balances jumped more than 13 per cent.

Rollover balances, which are the unpaid amounts that are subject to interest charges, have been climbing steadily since 2006.

Also up: The proportion of card holders with bills unpaid 30 days past the due date. It rose from 1.38 per cent last July to 1.67 per cent in December.

All this has made for a busier time for Credit Counselling Singapore (CCS), a non-profit organisation which helps debtors work out instalment plans to pay off their debts.

It said it handled a third more cases in the second half of last year than in the first half - 415 counselling appointments in the second half of the year, up from 299 in the first half.

Talks on credit management organised by CCS also started drawing bigger audiences - 1,254 in the second half of the year, against 929 in the first half.

Who is the typical debtor? That person is likely to be male and aged between 35 and 44, said the Credit Bureau (Singapore), which collects credit-related information and supplies this to credit providers such as banks.

The profile pieced together by the bureau is of a person likely to have defaulted on bill payments and, as a result, has had a credit account with an outstanding balance closed in the last six months.

CCS assistant director Tan Huey Min cited some possible reasons for the rise in number of debtors seeking help.

One of these is increased awareness that such programmes are available. Another is that the banks may be turning up the heat on debtors and making people 'realise that they need to do something'.

She added: 'Debtors or their family members may also be affected by job losses, so cash flow may have become a problem.'

A CCS client, Ms Susan Ng, said she was already on a debt repayment plan when she lost her job late last year. The 30-year-old, who was an accounts manager, returned to CCS for help in deferring her repayments. She still owes four banks $60,000.

The CCS secured for her deferments on her repayments till the end of this month, but she may need more time as she is still jobless. She said that if an extension is not possible, she will have to declare herself a bankrupt 'as a last resort'.

Card debts are likely to increase.

CCS president Kuo How Nam said that the spike in card spending last December to a new high of $2.438 billion 'could translate into higher rollover debt over the next couple of months'.

Mr Lim Cheng Boon, CCS' head counsellor, said the easy availability of credit puts people in a 'state of denial' - even among those who know they are spending more than they should.

He said of the high earners used to a lavish lifestyle: 'When their income changes, for example, when they take a pay cut, they are not prepared to make the changes in their lifestyle, and hope the situation will improve - which rarely happens.'

This article was first published in The Straits Times.