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How and when will the debtor be informed that he can commence the Debt Repayment Scheme ("DRS")?


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Updated by MLAW

Debtors may be informed of the outcome of the assessment of their suitability after the Creditors' Meeting via email and/or upon the fulfilment of specific instructions given to them. The Official Assignee ("OA") will also advise them of the amount of instalment the debtor will be required to pay.

The debtor will need to prepare the sum required (first month instalment amount and the first annual fee) and fulfil any other conditions or instructions which are specifically given to him by the OA. Otherwise, the debtor may be found unsuitable for the DRS and his case will be referred back to the Court.

The sooner a debtor starts on the DRS, the less he will be paying in the long run as interest on the claims made by his creditors will stop running on the day the Debt Repayment Plan starts. If the debtor commences on the DRS, the OA will inform the debtor, the Court the applicant-creditor and his creditors of the commencement. The bankruptcy application made against the debtor will be deemed withdrawn if the assessment is successful.


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