The business industry requires a consistent exchange of money between lenders and borrowers. However, it is a big challenge for creditors to ensure that they will get back their money from borrowers on time. There is no doubt to say that debt recovery is usually a frustrating and tedious process. It is common to see that creditors do not receive any response from borrowers on their letters, emails and calls. Checking out for their availability at their workplace is another false story. And in a rare case, if creditors are able to contact borrowers, they are likely to have no money to repay, or they may ask for more time to pay back the pending debt.
The money lending process in the business industry is a matter of frustration and pain. Suing borrowers for bankruptcy is mostly the only option left with the creditors. They may need to go to court to recover or may have to look for some trustworthy options to recover money out of court.
If you are looking for some trustworthy options for Singapore debt restructuring, the article below may help you better. Here we have listed various options for debt recovery and bankruptcy.
Singapore Debt Restructuring Fundamentals – In court debt recovery options:
There are multiple in-court debt recovery options that you can try for bankruptcy procedures in corporate restructuring Singapore. Creditors can try to submit claims at Small Claims Tribunal, go for bankruptcy proceedings or consider commencing civil procedures. The best choice will depend upon several factors involved in the lending process. If the debt amount is less than $10,000, then you can think of filing a claim with the SCT procedure. The creditors, in this case, are allowed to claim via CorpPass and SingPass. SCT may help you access inexpensive and quick forums, and the decisions are often enforced more like court judgments.
In the case of civil proceedings, creditors can put their claims in front of the court. It is important to mention that court proceedings are very costly; therefore, this option may not be feasible for all creditors, especially the ones with lower sums. In most cases of corporate restructuring Singapore, the court will ask to cease and sell the property of the debtor to repay the amount; therefore, this option is suitable when the borrower has the property of sufficient value.
Another option is commencing bankruptcy proceedings which is suitable if the debt amount is higher than $15,000. Moreover, it is best suitable if there are multiple creditors involved. In order to recover the debt, the assets of the debtor will be divided among all creditors.
Singapore Debt Restructuring Fundamentals – Out of court debt recovery options:
If you are not willing to consider court procedures for Singapore debt restructuring, it is possible to find some cost-effective and reliable out-of-court procedures. You can consider negotiating the settlement with a lump-sum amount with mutual discussion. Some creditors also prefer to hire a debt collection agency to aid the process. Another great solution is sending a letter of demand to the borrower that informs him/her about the non-payment consequences. You can consider any of these options to go ahead with the debt recovery in Singapore.