Singapore legislation
Clause 346
Clause 346
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 are to be set off against each other and only the balance is to be a debt provable in bankruptcy.
(2)
The following are excluded from any set-off under subsection (1):
(a)
any debt or liability of the bankrupt that is not a debt provable in bankruptcy;
(b)
any debt or liability that arises by reason of an obligation incurred at a time when the creditor had notice that a bankruptcy application relating to the bankrupt was pending.