Singapore legislation
Section 318
Section 318
Proceedings on debtor’s bankruptcy application
(1)
The Court hearing a debtor’s bankruptcy application must not make a bankruptcy order on the application unless the Court is satisfied that the debtor is unable to pay the debtor’s debts.
(2)
Where a debtor’s bankruptcy application has been made against a firm by some, but not all, of the partners in the firm, the Court must not make a bankruptcy order on the application unless the Court is satisfied that notice of the application in the prescribed form has been served in the prescribed manner on each of the partners who did not join in the application.
(3)
If a bankruptcy order may be made on the bankruptcy application, the Court must, instead of making the order, adjourn the bankruptcy application for a period of 6 months or such other period as the Court may direct and refer the matter to the Official Assignee for the purpose of enabling the Official Assignee to determine whether the debtor is suitable for a debt repayment scheme under Part 15, if all of the following qualifying criteria are satisfied:
the aggregate of the debts specified in the statement of affairs exhibited to the debtor’s affidavit under section 308(2) does not exceed the amount mentioned in section 316(9)(a);
the debtor is not an undischarged bankrupt, and has not been a bankrupt at any time within the period of 5 years immediately preceding the date on which the bankruptcy application is made, under this Act;
a voluntary arrangement under Part 14 in respect of the debtor is not in effect, and was not in effect at any time within the period of 5 years immediately preceding the date on which the bankruptcy application is made;
the debtor is not subject to any debt repayment scheme under Part 15, and has not been subject to any such debt repayment scheme at any time within the period of 5 years immediately preceding the date on which the bankruptcy application is made;
the debtor is not a sole proprietor, a partner of a firm within the meaning of the Partnership Act 1890 or a partner in a limited liability partnership.
(4)
The Court is to proceed to hear a bankruptcy application adjourned under subsection (3) if —
the Official Assignee reports to the Court under section 289(2) that the debtor is not suitable for a debt repayment scheme under Part 15; or
at the end of the period of adjournment, a debt repayment scheme has not commenced under Part 15 in respect of the debtor.
(5)
If at any time during the period of adjournment of a bankruptcy application under subsection (3) a debt repayment scheme commences under Part 15 in respect of the debtor, the bankruptcy application is deemed to be withdrawn on the date of commencement of the debt repayment scheme.
(6)
The Court may give such orders or directions as it thinks fit for the adjournment, hearing or disposal of a bankruptcy application mentioned in subsection (3).
(7)
For the purpose of subsection (3)(d), a person in respect of whom the Official Assignee issues —
a certificate of inapplicability of a debt repayment scheme under section 299; or
a certificate of completion of a debt repayment scheme under section 301(1) —
which states that all the debts (including interest on each of such debts at the rate to which a creditor is entitled under any written law or rule of law) of the person which have been proved under, and all the costs and expenses of, the debt repayment scheme have been paid in full; and
which has not been revoked under section 302(1),is not to be treated as having been subject to that debt repayment scheme.
(8)
In subsection (3)(a), “debt” has the same meaning as in section 288(1).