Bankruptcy and CPF

[elnewbie]

The OA has the right to compel CPF to reverse the transfer. Anything within 12 months prior to bankruptcy can be reviewed by the OA who can decide whether or not the person is doing it in order to hide or dissipate their assets.

Of course in certain situations, when assets are dissipated overseas, it becomes a paper judgement but the OA will take such things into consideration when deciding whether to discharge a person from bankruptcy or not.

You need to refer to Bankruptcy act and Penal code etc to answer that.

 

[edwinttt1978]

so is this a life hack??

This is a hack into the CPF Act, as well as other statutes, to be used as an instrument of fraud, something equity frowns upon.

 

[henrylbh]

So what if I borrow huge amount of cash from bank and deposit into my CPF, thereafter declare bankrupt

so is this a life hack??

If you are referring to above, it must be a dumb hack.

No bank will be that dumb to lend huge amount without security or guarantee and there is a limit on amount to place in CPF. There is also bankruptcy act for recourse.

 

[BBCWatcher]

No bank will be that dumb to lend huge amount without security or guarantee....

Not even 10 years since the Global Financial Crisis, you’re joking, right?

 

[testerjp]

Actually the answer is already on CPF page

 

[edwinttt1978]

Actually the answer is already on CPF page

Actually, the question is not whether CPF Life monthly payout is protected from creditors but whether CPF lump sum withdrawal at age 55 is protected from creditors.

 

[SKenny]

This is another reason why I like about CPF.

Our CPF is one of the most protected asset class that we have hold.

 

[koja6049]

What if a businessman borrow alot from a bank for his business, but stuff half of it into his cpf, do this for many years to get a fat cpf account and declare bankrupt?

 

[Mecisteus]

What if a businessman borrow alot from a bank for his business, but stuff half of it into his cpf, do this for many years to get a fat cpf account and declare bankrupt?

This is a fraudulent transfer from the eyes of the law. I don't think the law is so silly to allow the fraud to go through.

Can try if the person is desperate.

 

[koja6049]

This is a fraudulent transfer from the eyes of the law. I don't think the law is so silly to allow the fraud to go through.

Can try if the person is desperate.

I mean he could declare it part of his salary right? Then it is not fraudulent ba, he can just say I take salary but business not making money that's all

 

[Mecisteus]

I mean he could declare it part of his salary right? Then it is not fraudulent ba, he can just say I take salary but business not making money that's all

How much salary can you declare and siphon? 3k, 5k or 10k?

If too low, not worth it. If too high, banks deem the business is a profitable one. They might as well take over the business.

I don't know I'm not a lawyer.

All I can I say is, it's worth to try siphoning some assets if the person is already desperate.

Otherwise, I think not worth cheating the system .

 

[henrylbh]

Actually, the question is not whether CPF Life monthly payout is protected from creditors but whether CPF lump sum withdrawal at age 55 is protected from creditors.

Definitely not protected if he become bankrupt after withdrawal at 55.

Under S27, it should be protected. Anyway, if not protected, the bankrupt must be dumb to want to withdraw his CPF at 55 unless he wants a discharge.