Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 16 · Proceedings in Bankruptcy
312. Presumption of inability to pay debts
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In a creditor's bankruptcy application, a debtor is presumed unable to pay a due debt in certain cases, until proven otherwise. These include an unmet, unchallenged statutory demand after at least 21 days. They also include enforcement of a judgment debt that is not fully satisfied. They also include the debtor staying outside Singapore to obstruct the creditor.
Summary · Drafted with AI, checked against the official text on 30 Sep 2026.
Last amended by an amending law of 2021.
For the purposes of a creditor’s bankruptcy application, a debtor is, until the debtor proves to the contrary, presumed to be unable to pay any debt within the meaning of section 311(1)(c) if the debt is immediately payable and any one of the following applies:
creditor
“creditor”, in relation to a debtor proposing a voluntary arrangement under Part 14, means a creditor to whom the debtor owes a debt provable in bankruptcy;
the applicant creditor to whom the debt is owed has served on the debtor in the prescribed manner, a statutory demand, and —
applicant creditor
“applicant creditor”, in relation to a debtor under a debt repayment scheme, means the creditor who makes the relevant bankruptcy application against the debtor;
at least 21 days have elapsed since the statutory demand was served; and
statutory demand
“statutory demand” means a demand in the prescribed form which requires the person to whom it is addressed to pay, secure or compound to the reasonable satisfaction of the creditor making the demand, any debt owed by the person to the creditor;
the debtor has neither complied with it nor applied to the Court to set it aside;
debtor
“debtor” means the individual to whom a debt repayment scheme applies under this Part;
an enforcement order issued against the debtor in respect of a judgment debt owed to the applicant creditor has been returned unsatisfied in whole or in part;
judgment debt
“judgment debt” means a debt which is payable by any person by virtue of a judgment or an order of court against the person;
the debtor has departed from or remained outside Singapore with the intention of defeating, delaying or obstructing a creditor in the recovery of the debt;
debt
“debt” means any debt, or any liability to pay money, that is unsecured, present, certain, and of an amount that is fixed or liquidated;
the Official Assignee has —
Official Assignee
“Official Assignee” means the Official Assignee appointed under section 16(1) and includes a Deputy Official Assignee, a Senior Assistant Official Assignee and an Assistant Official Assignee;
issued a certificate of inapplicability of a debt repayment scheme under section 299;
issued a certificate of failure of a debt repayment scheme under section 300(1); or
revoked a certificate of completion of a debt repayment scheme under section 302(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.
bankruptcy application
“bankruptcy application” means an application to the Court for a bankruptcy order;