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Our Solutions
Debt Relief Proposition
Debt Relief Proposition (DRP) is one of the alternatives offered by Debt Relief LLP if the debtor isn’t eligible for the schemes brought available by the banks and government. We will produce a plan according to the client’s availability and aid in the client’s debt first.
*However, this is subjected to management’s approval for further assistance.
Debt Management Programme
Debt Management Programme (DMP) assists debtors with the payment capacity to pay all unsecured debts fully within a reasonable time. Similar to the Debt Repayment Scheme (DRS), the proposal given would cater to the debtor’s capability in monthly installments with reduced interest rates over a reasonable period. However, this focuses on the debts to be fully paid for unlike DRS which allows for a reduced debt settlement.
Debtors would require debtors to have accumulated unsecured debts of over $10,000 among 2 or more creditors to be eligible for this programme.
Debt Consolidation Plan
Debt Consolidation Plan (DCP) helps consolidate unsecured credit from multiple creditors with one participating financial institution, mostly banks. Debtors would be required to earn between $20,000 to $120,000 per annum as well as have a net personal assets of $2 million.
The calculation of the DCP amount would be the outstanding balance which includes the interest and charges made as well as an additional 5% allowance on the first DCP loan. The additional 5% will be used as a buffer for any incidental charges from the time the DCP is approved till the time the disbursed DCP amount is received by the creditors.
Debt Repayment Scheme
Debt Repayment Scheme (DRS) is a pre-bankruptcy scheme offered by the government to assist in the payment for major unsecured debts falling below $150,000. Similar to Debt Management Programme, debtors would be able to return the money in a more manageable manner while avoiding the restrictions and social stigma that bankruptcy would entail however, to the debtor’s capabilities. This would mean that their debt would be reduced appropriately with the creditor’s approval.
Unsecured debts would refer to debts without any claim or security needed such as credit card loans, study loans, etc. Over a fixed period of time, falling between five years and less, debtors will be required to make monthly payments to the creditors that have been discussed and agreed upon.
Debt Discount Settlement
Debt Discount Settlement (DDS) offers an alternative to debtors who are able to gather a sum of money. Debtors would directly proceed to their creditors for a discount, negotiating for a sum lower than the debt accumulated through a one lump sum payment.
Methods to acquire the sum needed would be through selling off assets or taking a small company loan.
Bankruptcy
Bankruptcy is an alternative method for debtors who cannot repay debts above $150,000. The debtors can voluntarily file for bankruptcy or their creditors can issue a bankrupt order if they don’t believe the debt can be repaid. Once declared bankrupt, their assets will be sold and put into a bankruptcy estate as well as their debt will be frozen at a certain amount; no longer accumulating. The monthly payments will be reduced, allowing it to be more manageable and creditors wouldn’t be able to sue for the debt.
The debtor will have to meet one of the requirements set before being able to file for bankruptcy.
● Is domiciled in Singapore
● Has property in Singapore
● Has been ordinarily resident in Singapore for at least 1 year
● Has had a place of residence in Singapore for at least 1 year
● Has carried on business in Singapore for at least 1 year