Singapore legislation
Clause 88
Clause 88
Mutual credit and set-off
(1)
Where there have been any mutual credits, mutual debts or other mutual dealings between a bankrupt and any creditor, the debts and liabilities to which each party is or may become subject as a result of such mutual credits, debts or dealings shall be set-off against each other and only the balance shall be a debt provable in bankruptcy.
(2)
There shall be excluded from any set-off under subsection (1) any debt or liability of the bankrupt which —
(a)
is not a debt provable in bankruptcy; or
(b)
arises by reason of an obligation incurred at a time when the creditor had notice that a bankruptcy petition relating to the bankrupt was pending.