Bankruptcy Regime Administered by Private Trustees in Bankruptcy in Effect from 1 November 2023

From 1 November 2023, bankruptcy estates are required to be administered by Private Trustees in Bankruptcy (“PTIBs“), except for cases where the Official Assignee (“OA“) considers there is public interest and consents to be appointed as the trustee in bankruptcy.

This marks a significant development for Singapore’s personal bankruptcy regime, where the OA would previously act as the trustee administering the bankruptcy in most cases. The reform seeks to reduce the usage of public resources involved in private debt recovery while ensuring that bankruptcy cases continue to be managed in an orderly manner.

The new PTIB-administered bankruptcy regime applies to bankruptcy orders made by the Singapore High Court in bankruptcy applications filed on or after 1 November 2023. The amendments also introduce certain changes to protect persons dealing with bankrupts and provide continued support to the PTIB industry.