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PASCAKEBANKRAPAN DURING COVID-19 ISSUE

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asked on Sep 11, 2021 at 00:20
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HELLO EVERYONE. 

Does anyone here have experience in Do-It-Yourself - Annulment of Bankruptcy under Section 105 of Insolvency Act 1967 during this Covid19 pandemic? 

I need help. THANKS IN ADVANCE! <3 
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7 Answers

answered on Sep 11, 2021 at 13:44
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edited Sep 11, 2021 at 13:47
by   jeff005
Annulment of Bankruptcy under Section 105 of Insolvency Act 1967 

[Annulment of Bankruptcy Order Power of court to annul bankruptcy order in certain cases ]

Section 105. 
(1) Where in the opinion of the court a debtor ought not to have been adjudged bankrupt, or where it is proved to the satisfaction of the court that the debts of the bankrupt are paid in full, or where it appears to the court that proceedings are pending in the Republic of Singapore for the distribution of the bankrupt’s estate and effects among his creditors under the bankruptcy or insolvency laws of the Republic of Singapore and that the distribution ought to take place in that country, the court may annul the bankruptcy order.

Personal View /Interpretation

1. Annulment of Bankruptcy

2. Bankruptcy Discharge

3. Annulment of Bankruptcy Order

The above 3 terms have different connotations and is different from each other with different time frames and on different circumstances.

May I humbly suggest that if you do not under the above terms (and conditions), seek the advice of a competent Lawyer. D.I.Y. is not suitable for section 105.

@carrie1226  is annulment because of her own situation and she cannot apply for bankruptcy discharge for personal reasons. Annulment and Discharge have different legal meanings. But the documents submitted and process is almost the same.

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answered on Sep 11, 2021 at 22:31
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Hi Mr Jerry. 

Thanks to you too for the guidance on earlier post about bankruptcy.

Yes, in my case, full settlement has been made. although during first meeting with OA, I have declared three creditors. However, i was made bankrupt by this one (1) specific creditor. The other two creditors did not submit any Proof Of Debt. 

so, my concern is; I already settle on my own to the other two creditors. Is it wrong?? because they have not submit POD to insolvency. then i settle myself.  
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answered on Sep 12, 2021 at 15:52
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edited Sep 12, 2021 at 16:23
by   jeff005
@ sesumpah

Sori.. i,m writing instead of Mr. Jerry (the mousie). Tom is on sunday leave today.

The other two creditors did not submit any Proof Of Debt. 
Then why did you pay?
Creditors who did not submit any POD does not mean you do not owe them moneys. After this your annulment, current unpaid creditors can still file for 2nd Bkcy (Another new bkcy upon discharged), if the amount exceeds the threshold amount.
(Note that there is also what is termed as "Double Bankruptcy" (same period of bkcy). It has been discuss 5-6 years ago).

Your Creditors (Financial Institutions or business dealings)? There are secured and unsecured creditors. Non banking debts are listed as "other creditors".

so, my concern is; I already settle on my own to the other two creditors. Is it wrong?? because they have not submit POD to insolvency. then i settle myself. 
Who is in the wrong is that you are asking? The creditors or yourself?

My answer is  : Both are in the wrong..!!

You have quoted Section 105 of Insolvency Act 1967  then you should have also read that when a person have been adjudicated as a bankrupt, the bankrupt cannot make any payments to any creditors by bkcy laws. Any negotiations or settlement must be via JIM because JIM acts as a trustee to the bankrupt's estate and charges the creditors - fees.

For the bankrupt, any unauthorized settlements, JIM will seize the amount paid and will distribute it to all POD creditors.

Under banking laws & policies and bkcy laws, if it a recipient banker, there are fines levied for breaking laws to the banker.

Read the Bkcy Act 1967 as a whole book /bible, not taking snippets of laws out of context.
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answered on Sep 13, 2021 at 23:17
by  
sesumpah

Personal opinion

Your application under Section 105 is riddled with deflective flaws.
It is advisable for you to seek the advises from a competent bkcy lawyer.

The primary doc which is required by the High Court is the "release from bankruptcy" from JIM. The rest of the docs are secondary as evidences only.

It is up to JIM to weigh your payments to "unauthorized creditors" (even if you have declared it in your SOA). Laws have been infringed.

Since you have not posted the TIMELINE of your bkcy, i,m unable to comment further.

For annulment of bankruptcy order  it must go thru the High Court as it is the entity that has issued the BO.

For bankruptcy discharge, the docs must be from JIM as it manages the bankrupt's estate under the case management. Unless JIM refuses to discharge a bankrupt, a bankrupt can file for discharge in the high court based on merits. It is highly subjective, taking into account when the bankrupt have been bankrupted and when only the bankrupt have reported in. Paying direct to "other creditors" is another infringement. Non compliance to the 6 monthly I & E statutory submission requirement is another infringement. There are others T&C too. Refer to the Bkcy Website for any new policies.
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answered on Sep 16, 2021 at 15:43
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Dear Mr. Jeff005,

Thank you for the long explanation. I am settling the debts because the creditors didn't submit any proof of debt. I didnt think further, honestly, I am just helping my brother, to help ease his burden. 

So, what should I do know? Payment already been made. Please advise. 
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answered on Sep 21, 2021 at 12:39
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sesumpah

Thank you for the long explanation

My long and tedious explanation is based on the premise that you will be making the wrong application for "annulment" under section 105, based what you have posted ;

1.  Have reported in to JIM, filed the SOA.

2.  Paid direct to creditors as have been stated in the SOA

It should be under Bankruptcy Discharge  under section 33.

-----------------------------

what should I do know?

The only person/s who can help your brother is his OA (Official Assignee - Pegawai Insolvensi). Come clean with had been done without seeking their permission.

JIM have solutions for this type of situations.
Your brother is not the first nor will be the last.
Not all solutions posted in the internet is accurate.
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answered on Sep 21, 2021 at 20:53
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Wishing all fellow Chinese readers here - 

Happy Mid Autumn Festival and Reunion Dinner..

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