Debt Repayment Scheme (DRS) Official Assignee

[maddogkiller0]

The Debt Repayment Scheme (“DRS”) is a pre-bankruptcy scheme which is administered by the Official Assignee under the Bankruptcy Act (Chapter 20).



It seeks a win-win outcome for both the debtor and his creditor. Debtors with unsecured debts not exceeding $100,000 will be able to enter into a debt repayment plan (“DRP”) under the DRS with their creditors and avoid bankruptcy, along with its restrictions and social stigma.





The proposed DRP must ensure that the interests of creditors are adequately safeguarded. These debtors will commit to the DRP and repay their debts over a fixed period of time of not more than 5 years. When the debtor meets his financial obligations under the DRS, he will be released from his debts and have a fresh start thereafter.

 

[maddogkiller0]

How Do I Apply for the DRS?

In order to apply for the DRS, you are first required to file a bankruptcy application with the court. Or, if your creditors have already taken out bankruptcy proceedings against you, the court will refer you to the Insolvency Office for the OA to assess your eligibility to enter the DRS.

 

[maddogkiller0]

What is the Eligibility Criteria for the DRS?

You are eligible for the DRS if:

Your total debts do not exceed S$100,000
You have not been a bankrupt any time during the last 5 years
You have not have been on the DRS in the last 5 years
You are not a sole proprietor or a partner in a partnership

You must also not:

Submit or furnish any information or document to be false or misleading to the OA in relation to your financial affairs;
Fail to disclose any information relating to your financial affairs that is required by the OA;
Fail to disclose your property or any disposal of your property to the OA;
Feign losses and expenses to account for your property when reporting to the OA;
Enter into any undervalue transaction with another party 5 years from the day on which the bankruptcy application is made against you until the last day of completing the DRS; or
Give any unfair preference to:
An associate 2 years from the day on which the bankruptcy application is made against until the last day of completing the DRS; or
A third party 6 months from the day on which the bankruptcy application is made against until the last day of completing the DRS

 

[maddogkiller0]

Dun know whether is risky or not, to apply for bankruptcy to get DRS...

 

[maddogkiller0]

DRS is a good form of remedy if your debt is too high that DMP cant help with...

 

[seeklightsoon]

DRS is a good form of remedy if your debt is too high that DMP cant help with...

But if debt is higher than $100K then DRS cannot also. But I think DMP can.

 

[Bebe2019]

If we apply for this successfully under drs, I was told it cover all the unsecured loans, unpaid bills, legal money lender is that correct

 

[zodiakleo]

If we apply for this successfully under drs, I was told it cover all the unsecured loans, unpaid bills, legal money lender is that correct

Yes, that's right

 

[Bebe2019]

Yes, that's right

While I am applying for drs and I can't afford to pay my lml what will happen? Will they harass my office or nok?

 

[zodiakleo]

While I am applying for drs and I can't afford to pay my lml what will happen? Will they harass my office or nok?

The DRS would include debts with licensed money lenders too and they should not harass your office or nok.

 

[Bebe2019]

The DRS would include debts with licensed money lenders too and they should not harass your office or nok.

Thank u... I am really clueless abt drs and I am scared if the lml will harass my nok or office as I need my job. I really need guidance on this issue

 

[yazzzidy]

For those need help, find astute by edudebt on FB.

 

[stardotstar]

DRS is the only option if DCP gets rejected and Credit Counsel Singapore DMP is not an option since DMP does not cover debt from LML.

The truth is DCP can make u repeat your debt mistake. Total repayment is exorbitantly high even though monthly repayment is bearable. They give a credit card of 1x salary to use. This is where you can fall back into debt if you never learn.

For DRS, there is the pre-bankrupcy stigma to it and is in the public record for any financial institution that wishes to see.

But for the debtors, it's a fresh start to make amends for their financial mistake and ease their financial burden.

The only problem with DRS is you need to fork out slightly over $2k for the legal fees for court documents and such. And if you go through the assistance of a debt agency to help process, add another $1.6k - $2k for their services. If you don't have the funds, you are pretty stuck.

Then have to beg and borrow somewhere but please don't borrow from another LML.

I think I put everything out in the open for anyone seeking help for their financial problems. You have to register and attend for CCS talk before proceeding with their assistance for DMP. They charge $30 for their services though the talk is FOC. I've also mention Debt agency charges. Also mentioned about DCP.

So the choice is yours if you want to avoid bankruptcy.

 

[Eggmayoyummy]

If the person is on drs, is he eligible to loan from moneylender ?

 

[Originsinga]

If the person is on drs, is he eligible to loan from moneylender ?

Hi,as far as I know under the Debt Repayment Scheme you are not allow to take up any loan. Even if you do so, the creditor can see your DRS status in their system and for their part, it's a must for them to inform the 0A

 

[Anewhope]

I'm on DCP right now but really thinking of applying for DRS soon. Reason being need all the money i can get due to parents retired and i'm taking care of them. My current BTI is ard 7 and credit score 1979, rating of AA.

Pros and cons anyone? Currently single and thinking of marriage probably in a couple of years. Working in a local FI. Been flagged recently by my HR for my 'high' outstanding of $28k.

 

[Eggmayoyummy]

Anyone here on drs? May I know how’s the experience like?

 

[Adil_86]

I'm in government sector . Has helped me mitigate my debts . Debts are under control

 

[seeklightsoon]

Working in a local FI. Been flagged recently by my HR for my 'high' outstanding of $28k.

Are you a personal banker / relationship manager? It is quite strange that your HR performs checks and note that your debt level is "high"

 

[Anewhope]

Im in ops. I'm currently servicing my dcp and made my way up to AA from HH. Comfortably paying my monthly and have savings now (thanks to DCP). HR mentioned they are actively looking at our credit reports for those that owe more than 12x which is MAS policy. I juz checked my current BTI which is 6 now, i was told i happen to fell under their "6-12" category (high side). I did tell them probably there was a mistake somewhere, and was told as such. There will be quarterly reviews just to make sure I'm keeping my promise to lessen the overall debt. Well i know for sure I'm on the right track. Problem is i want this to go away and just apply for DRS. But if i do that, scared it might jeorpedise my work. Any comments?

Are you a personal banker / relationship manager? It is quite strange that your HR performs checks and note that your debt level is "high"