Singapore legislation
Section 56H
Section 56H
Modification of debt repayment plan
(1)
Subject to subsection (6), the Official Assignee may at any time on or after the effective date of a debt repayment scheme, of his own volition or at the request of —
the debtor to whom the scheme applies;
a creditor who is bound by the debt repayment plan under the scheme; or
a creditor, not being a creditor referred to in paragraph (b), who proves his debt under the scheme,modify the plan in such manner as he considers appropriate.
(2)
Before making any modification to the debt repayment plan, the Official Assignee shall, by notice in writing to the debtor and all the creditors who have proved their debts under the debt repayment scheme, convene and preside at a meeting of creditors.
(3)
Subject to subsection (6), the Official Assignee may, at or after the meeting of creditors, refuse to modify the debt repayment plan or may make such modifications to the plan as he considers appropriate.
(4)
The debtor or any creditor who has proved his debt under the debt repayment scheme may, within such time and in such manner as may be prescribed, appeal to the Appeal Panel against the Official Assignee’s decision under subsection (3) on the ground that the decision unfairly prejudices his interests.
(5)
The Appeal Panel may determine the appeal by —
confirming the Official Assignee’s decision; or
subject to subsection (6), making such or such further modifications to the debt repayment plan as it considers appropriate,and the decision of the Appeal Panel shall be final.
(6)
Subject to such further restrictions on the extension of the repayment period of a debt repayment plan as may be prescribed, any extension under this section of the repayment period of the plan shall be subject to the repayment period not exceeding at any time —
where the plan includes a debt referred to in section 56G(1)(b) or (c), 7 years; or
in any other case, 5 years.
(7)
If a debt repayment plan is modified under this section, the modification shall take effect on such date as may be specified by the Official Assignee in his modification of the plan under subsection (3) and as from that date, the plan as modified shall be binding on —
the debtor;
every creditor who is bound by the plan before the modification; and
where the plan is modified to include the debt of a creditor referred to in subsection (1)(c), that creditor.
(8)
An appeal under subsection (4) shall not suspend the commencement, operation or effect of a debt repayment scheme under this Part.