In Singapore, individuals declared bankrupt are subject to certain restrictions regarding bank accounts. While bankrupts are allowed to have access to banking, they are limited to having only one savings account (with approval) for managing essential financial transactions.
All affairs managed by Official Assignee
Upon being declared bankrupt, an individual’s financial affairs are managed by the Official Assignee (OA) or a private trustee. Existing bank accounts might be frozen during the initial stages of bankruptcy. The OA will assess the situation and may grant the bankrupt individual access to a single savings account for daily transactions.
Bankrupts are not allowed to have credit facilities
Bankrupts must open a basic savings account without overdraft or credit facilities. This account will enable them to perform fundamental banking services such as depositing salaries, paying bills, and transferring funds. It is important to note that some banks may impose stricter criteria for opening accounts for bankrupt individuals.
Update of Bankruptcy Status
Furthermore, it is mandatory for bankrupt individuals to inform the bank about their bankruptcy status, ensuring transparency and compliance with Singapore’s bankruptcy regulations.
In conclusion, bankrupts in Singapore are allowed to have only one basic savings account to manage their essential financial transactions while adhering to the country’s bankruptcy regulations.