In Singapore, consumers have a real answer to high volumes of debt. Consumers who have accumulated many assets can utilize they to settle their debts. The process involves the sale of these assets through the court. The following is an assessment that highlights how the liquidation process works for consumers.
Surrendering Ownership of Assets
The first step is to surrender ownership of these assets. They provide all deeds and titles to their attorney at the beginning of the process. These deeds and titles are provided to the assessor that the court assigns to the case. The assessor has the assets appraised to identify the projected proceeds in which the asset could accumulate through a sale. These values are compared to the total balance owed to each creditor.
Starting the Sale of Assets
The assessor chooses the most effective sale option for each asset. After the sale is completed, the assessor manages the distribution of these proceeds to each individual creditor. The creditor provides them with documentation that shows that the debt is settled in full. The creditor must also update their listing on the consumer’s credit report that shows a zero balance.
Are Debts Discharged?
Yes, it is possible to discharge some debts; however, this is up to the court. The circumstances that allow a discharge define an alternative method of collecting the overdue balance. For example, unsecured credit cards are often discharged because the creditor can file an insurance claim to collect their losses.
Can They Collect Any Proceeds?
The consumer can collect some proceeds if there are any left over after the debts are paid. They don’t acquire an exempted value as U.S. consumers do. The laws are stricter in Singapore. Additionally, the creditors can collect some of the leftover proceeds if they receive a value lower than the original debt.
In Singapore, consumers have a clear answer for paying off debts. These debts are managed through liquidation of the assets. However, if the consumer doesn’t possess enough assets to settle their debts, it is possible that they will be denied access to liquidation. Consumers who need more information about this process contact bankruptcy lawyers in Singapore today.