Publication
Government Investigations in Singapore 2025
We have contributed the Singapore chapter of Getting the Deal Through, Government Investigations 2025.
Australia | Publication | 1 April 2020
It is important for individuals to understand the potential impact of personal bankruptcy and what relief may be available to them in this evolving COVID-19 crisis.
Bankruptcy is a process that allows a person to manage their creditors. Before applying to the Court for a bankruptcy order you should engage with your creditors and ask for more time to pay, seek a flexible payment option or seek to enter into a debt agreement.
REMEMBER: Bankruptcy can have serious consequences on your ability to obtain future credit and deciding to declare bankruptcy should not be done lightly.
A debt agreement1 is a formal agreement you may be able to enter into with your creditors. To enter into a debt agreement you will need to meet the eligibility requirements and appoint a debt agreement administrator. More information on the process can be found here.
In a debt agreement, your creditors agree to accept a lower amount over a set period of time. While these agreements can be helpful, you must consider the consequences:
If you are unable to negotiate a different outcome, or if you fail to comply with the terms of a debt agreement, there are two common ways you may be declared a bankrupt:
REMEMBER: The Federal Government has announced plans to temporarily increase the bankruptcy debt threshold from $5,000 to $20,000, and the time for compliance from 21 days to 6 months.3
The legal term for a bankruptcy order is a ‘sequestration order’. By the terms of a sequestration order:
If you become bankrupt, the bankruptcy will stay on a register permanently and will be recorded against your credit report for a period of at least 5 years.
If a bankruptcy trustee is appointed to your property, it may take possession of various property that you own including your home (if you own it) and sell that property to pay your creditors.
Bankruptcy can last for three years or until all of your creditors have been paid. Your trustee may apply to extend this period if they need more time to sell your property.
During the period of your bankruptcy, you will be allowed to:
REMEMBER: It is important to note that your bankruptcy can affect your partner’s assets if they own assets with you or are in possession of an asset that is owned by you.
A number of banks and mortgage lenders are offering support packages, which can include putting your home loan repayments on hold for six months, with interest capitalised. You should consult the Australian Banking Association’s financial difficulty website for further details.
External Administration: https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors/directors-what-happens-if-company-insolvent/#voluntary
What do I do if my company is insolvent: https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors/
What if my employer is insolvent: https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-employees/
What is Bankruptcy: https://www.afsa.gov.au/insolvency/cant-pay-my-debts/what-bankruptcy
https://rlc.org.au/sites/default/files/attachments/Redfern%20Legal%20Centre%20-%20Factsheet%2010%20-%20Voluntary%20Bankruptcy.pdf
http://www.moneyhelp.org.au/your-debt-options/going-bankrupt/
Can I declare bankruptcy: https://www.afsa.gov.au/insolvency/cant-pay-my-debts/am-i-eligible-bankruptcy
https://www.afsa.gov.au/insolvency/cant-pay-my-debts
https://moneysmart.gov.au/managing-debt/bankruptcy-and-debt-agreements
How does bankruptcy affect my life: https://www.afsa.gov.au/insolvency/currently-bankrupt
https://www.afsa.gov.au/insolvency/cant-pay-my-debts/consequences-bankruptcy
https://www.afsa.gov.au/insolvency/cant-pay-my-debts/assets-can-be-taken-or-sold
Also known as a Part IX debt agreement.
Common acts of bankruptcy include a failure to comply with a bankruptcy notice (which is a statutory demand which requires you to pay a specified debt within 21 days of receiving the notice) and, a failure to comply with a debt agreement.
You should continue to consult the Australian Government’s website regarding the timing for these changes.
$58,331 after tax if you have no dependents and higher amounts depending on the number of dependents that you have. Any money earned over this amount will trigger contributions towards paying your creditors.
Publication
We have contributed the Singapore chapter of Getting the Deal Through, Government Investigations 2025.
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The private credit market and direct lending have grown and diversified immensely in the past decade, offering alternative sources and terms of debt compared to those historically provided by the syndicated leveraged loan and public issuance markets. Consequently, they are fast becoming pivotal components in the capital ecosystem, so much so that the Bank of England consider that the private credit market is currently responsible for approximately $1.8 trillion of debt issuance, which is four times its size in 2015. This growth has been particularly pronounced in Europe and the US but there has also been significant activity in Asia.
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The EU’s Artificial Intelligence Regulation, commonly referred to as the AI Act, is expected to come into force during the summer of 2024 (the AI Act). The AI Act will be the first comprehensive legal framework for the use and development of artificial intelligence (AI), and is intended to ensure that AI systems developed and used in the EU are safe, transparent, traceable, non-discriminatory and environmentally friendly.
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