Discharge from backruptcy

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asked on Aug 6, 2001 at 22:32
by   Concern daughter
My parents have been adjudged bankrupt more than 5 years now. It's because my father's business failed and have debts with a company. Then, my mother, a full-time housewife, is  a guarantor on behalf of my father. They are already late 50s and jobless due to this bankruptcy. As a daughter, would like to help them to discharge from the backruptcy. Would like to get advise on how the procedures go? Pls advise. I got to know that they could apply to the Official Assignee for discharge after 5 years from the date of Receiving and Adjudication Order. Under the amended Bankruptcy Act, they could be reprieved if they are old, jobless and sick. Your advice is very much appreciated
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answered on Aug 7, 2001 at 16:07
by   Michael
Contact the official assignee office. The applicant will have to make an application there.

If an application is successful, a certificate of official assignee will be issued upon payment of a prescribed fee. A notice of discharge will be given by the official assignee to the Registrar and the official assignee shall advertise the notice in local newpaper.

Prior to issuing a certificate of discharge, the official assignee will serve on each of the creditor who filed a proof of debt a notice of his intention to issue the certificate. The creditor may object to the issuance of the certificate stating the grounds of objection.

Furthermore, the official assignee will take into the consideration as to the bankrpt's conduct, affairs during the proceedings and under his bankruptcy which is very important.

A certificate is normally granted if a person is being adjudged a bankrupt due to business failure or being a guarantor and intends to venture into business again.

If you intend to apply for a discharge due to the old age of your parents or because they are jobless, the chances is very low. Most bankrupts are in the same situation - jobless.
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answered on Aug 7, 2001 at 20:45
by   Concern daughter
Thanks a lot for your advice, Michael. One important thing I would like to highlight to you if there's any possibility that my mother is qualified to apply for the official Assignee for discharge. My mother was actually the guarantor of loans for my father's business. She didn't involve in the business and nor a shareholder of the business. Since my father's business was closed down and declared bankrupt, automatically the creditors also filed a bankruptcy to my mother. Pls advise if the possibility of getting the approval from the official assignee is high for my mother.
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answered on Oct 9, 2001 at 22:00
by   LordDenning
Before you proceed on the application, my question to you is whether there is any purpose to discharge them as a bankrupt.

There are a lot of new rulings regarding discharge of a bankrupt. Personally, I know that for a succesful discharge, the applicant needs to show that he has a good track record in paying the money to the Official Assignee (OA). The 5 year ruling is not exhasutive because it will depend on the OA's discretion.

For further details, email me at
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answered on Mar 1, 2005 at 08:26
by   moujou
My parents are in a similar situation. However, I am currently in the US and will be having a baby and would like for my parents to come over for about 3 months. What are the chances of them being discharged in this case? My father has not been working, but my mother has been employed as a nurse and recently retired. Her salary has been deducted every month as payment to the Official Assignee the whole time of her employment (20+ years). Please advise.
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answered on Apr 2, 2005 at 10:06
by   manzsin
For "MOUJAU", your posting leads me to think on the question: Does the full payment required for the discharge of bankruptcy?

Perhaps in theory the answer is positive.  But in reality, the answer is far likely to be negative. This reminds of two famous cases.  Allan Bond, once the famous billionaire of Australia and Tan Koon Swan of Malaysia.  Tan owed somewhat RM500 million, his bankruptcy was settled with unspecified sum with the creditors.  Bond offered only a few million dollars, or a very small fraction of the gigantic amount owed.  It is more of a matter of negotiation.  The creditors, especially the large financial institutions are commonly very keen to get back some thing, no matter how little, than nothing.

Disregarding the question of moral, what is the point for a third party [i.e. your mother] to pay for your father's debts if he is not likely to enjoy his discharge in 20+ years, or within his life time?

It is obvious to me the rich and well informed bankrupts have obtained benefits from the system while the small and uninitiated bankrupts bear the burden.
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