Singapore legislation

Section 62

Presumption of inability to pay debts

Amended by42/20056/2009

For the purposes of a creditor’s bankruptcy application, a debtor shall, until he proves to the contrary, be presumed to be unable to pay any debt within the meaning of section 61(1)(c) if the debt is immediately payable and —

(a)

(i)the applicant creditor to whom the debt is owed has served on him in the prescribed manner, a statutory demand;

(ii)

at least 21 days have elapsed since the statutory demand was served; and

(iii)

the debtor has neither complied with it nor applied to the court to set it aside;

(b)

execution issued against him in respect of a judgment debt owed to the applicant creditor has been returned unsatisfied in whole or in part;

(c)

he has departed from or remained outside Singapore with the intention of defeating, delaying or obstructing a creditor in the recovery of the debt; or

(d)

the Official Assignee has —

(i)

issued a certificate of inapplicability of a debt repayment scheme under section 56L;

(ii)

issued a certificate of failure of a debt repayment scheme under section 56M(1); or

(iii)

revoked a certificate of completion of a debt repayment scheme under section 56O(1),in respect of the debtor within 90 days immediately preceding the date on which the bankruptcy application is made, and the applicant creditor had proved the debt under that debt repayment scheme.

Read in full context — Bankruptcy Act →