Singapore legislation
Clause 342
Clause 342
Power of Official Assignee to reduce monthly contribution and target contribution
(1)
The Official Assignee may, on the application of a bankrupt, issue a certificate reducing the bankrupt’s monthly contribution and target contribution to such extent as the Official Assignee thinks fit, if the Official Assignee is satisfied that one or more of the conditions described in subsection (2) arose after the determination of the monthly contribution and target contribution.
(2)
The conditions mentioned in subsection (1) are as follows:
the reasonable expenses for the maintenance of the bankrupt’s family have increased as a result of an increase in the number of the members of the bankrupt’s family;
the contribution by the bankrupt’s spouse to the maintenance of the bankrupt’s family has been substantially reduced as a result of a substantial reduction in the monthly income earned by the bankrupt’s spouse, and that reduction in income is not likely to be transient in nature;
the bankrupt is unable to pay the monthly contribution in full due to the personal circumstances of the bankrupt, including but not limited to a debilitating illness, which resulted in a substantial reduction in the bankrupt’s income, and that reduction in income is not likely to be transient in nature.
(3)
A certificate issued under subsection (1) takes effect on the date it is issued.
(4)
A certificate issued under subsection (1) does not affect any payments made by the bankrupt in respect of the monthly contribution or target contribution prior to the date of issue of the certificate.
(5)
The Official Assignee must, within 14 days after the issue of a certificate under subsection (1), serve a notice of the issue of the certificate on —
the bankrupt;
every creditor who has filed a proof of debt; and
in a case where the reduction is made before the expiry of the period mentioned in section 347(2), every creditor who is mentioned in the statement of the bankrupt’s affairs but who has not filed a proof of debt.
(6)
Where the bankruptcy is being administered by a trustee in bankruptcy, and the certificate under subsection (1) was issued by the trustee, the trustee must also serve the notice of the issue of the certificate, together with an explanation of the basis for issuing the certificate, on the Official Assignee.