Here’s an extract from the radio:  ,
Andrea Heng:  ,
What is one widespread misunderstanding about being declared destitute that people have?
Claudia Khoo:  ,
One common misconception is that those who reside in HDB ( flats ) believe their homes will be forced to be sold and that they will not be able to live. HDBs are quite unique. The secret trustees and the official trustee are not involved in their vesting. But to put it bluntly, you get to maintain your HDB.
Andrea:
You have to deal with your debt while also having a roof over your scalp.
Claudia:
But this is not the exact if you have a personal home, of course.  ,
Andrea:
Okay, but that private home becomes collateral in the end.  ,
Claudia:
In a way, the personal directors, they are not that tough. In order to ascertain whether or not a personal property may be sold, they will examine a bankrupt’s earnings, expenses, and what they can provide for the household. The proceeds will then be divided between the creditors. So they will conduct a comprehensive analysis of the assets the destitute has. And it’s not often, oh, you own a condo, or you stay in a landed ( property ), and I’m going to sell it and then I’m going to give it to the creditors. It is based on a case by case basis.  ,
Andrea:
Okay… How do we determine finally if bankruptcy or declaring yourself destitute, is the best solution for your loan position?  ,
Claudia:
I did consider self-filing for bankruptcy if I was at my wit’s end and had no money to pay these bankers. There is nothing I can do to get a temporary relief from these money, in my opinion. If for example, I do have probable business offers, I do have probable white warrior traders because, like I mentioned, most of these people who are judged bankrupts are sureties of businesses. Finally, let’s say hang on, try to work out a deal, and then ask your creditor to approve of it. Because at the end of the day, perhaps if I am judged a bankrupt, my bank does not return little, let alone the entire amount. Therefore, it might be wiser for both me and the bank to allow me to take some time to create a plan with a potential buyer to see if all leaves feeling satisfied.