Bankruptcy generally holds a negative impression in the Singaporean market. This word is closely associated with financial ruin and failure. While experiencing bankruptcy, the company directors may experience lots of challenges. But if you take company liquidation advice from experts, they can help you to come out of these problems. The article below may help you to understand corporate bankruptcy and corporate restructuring Singapore with ease.
What is Corporate Bankruptcy in Singapore?
The company in Singapore may be considered insolvent when the creditors start demanding an outstanding payment of more than S$10,000; especially when the company is not able to repay this amount within 21 days. During the pandemic situation, the threshold has been increased to S$100,000. Moreover, the repayment duration has been increased to 6 months.
Company Liquidation Advice – What happens to Company’s Liquidated Assets?
In case there are no relevant proceedings from the court but the company is facing lots of financial debt, the directors may submit an application for bankruptcy. In such a situation, the court may issue a debt moratorium to the company. It may legally delay the debt repayments of the company for a pre-defined duration and the company may find time to handle debts through insolvency. The company owners can also seek help from corporate restructuring Singapore to deal with the issues.
Duties and responsibilities of a Bankrupt
Once a company is declared bankrupt, the directors need to disclose all essential details about the properties associated with the company. They need to make monthly contributions to pay off creditors. Moreover, the authority must be informed about valid contact details and the residential addresses of the involved parties. They are also responsible to attend meetings with assigned authority from time to time. The assignee will also take care of the conduct before and during the process of bankruptcy. They categorize your business based on the conduct of bankruptcy and then the rules are established accordingly. They may keep you either in the green zone, or red zone and the responsibilities will be assigned accordingly.
The concerned persons are allowed to have foreign travel only after the approval of the assignee. If you are planning to start another business, you may need to take permission from the court. The court also disqualifies a bankrupt from acting as a personal representative or trustee to someone. If you are interested to get more information on the duties and responsibilities of a bankrupt in Singapore, it is better to avail company liquidation advice from experts in the city.
Why Singapore is an ideal place for corporate restructuring?
Some of you may be interested to know why Singapore is the best place to lead the corporate restructuring process. Well, the local government agencies can provide you with enough support for these processes and they can also guide you about legal procedures. It is better to hire a trusted corporate restructuring Singapore agency that can assist you with pending debts. The well-designed schemes of arrangements and restructuring procedures can help even beginners to deal with the challenges associated with insolvency.