What if a Debt Repayment Scheme (“DRS”) debtor has entered into a hire-purchase agreement or a mortgage loan?
If a debtor has entered into a hire-purchase agreement before the bankruptcy application was made against him or has an existing mortgage loan on a property, he is to inform the Official Assignee of this when he is being considered for the Scheme.
The debtor should continue to make payments to the hire-purchase company or the bank in accordance with the terms of the hire-purchase agreement or the mortgage agreement.
Related questions
Do I have to repay my creditors before commencing the Debt Repayment Scheme ("DRS")?
How and when will the debtor be informed that he can commence the Debt Repayment Scheme ("DRS")?
What is the Debt Repayment Scheme ("DRS") and when did it start?
What happens if a debtor on Debt Repayment Scheme (“DRS”) defaults on his instalment payment?
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