What happens if a debtor on Debt Repayment Scheme (“DRS”) defaults on his instalment payment?
The Official Assignee may issue a Certificate of Failure against the debtor and will inform his creditors of this. The creditors may then start fresh bankruptcy proceedings against the debtor. The debtor may be adjudged a bankrupt thereafter.
Related questions
Can I opt out of the Debt Repayment Scheme ("DRS")?
What is a Certificate of Completion for Debt Repayment Scheme (“DRS”)?
How and when will the debtor be informed that he can commence the Debt Repayment Scheme ("DRS")?
Do I have to repay my creditors before commencing the Debt Repayment Scheme ("DRS")?
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