How to Opt Out of the Debt Repayment Scheme (DRS)

The Debt Repayment Scheme (DRS) is a program that helps you pay back debts over time without going through full bankruptcy (which means when the court takes control of your money and belongings to pay your debts).

You can choose to opt out of DRS only during specific periods and under certain conditions.

Before you start

You will need:

●       Your DRS case number and agreement documents

●       Written explanation of your reasons for opting out

●       Legal advice (strongly recommended)

Important: Opting out of DRS means you will likely proceed to full bankruptcy proceedings.

Check if you can opt out

You CAN opt out if:

●       Before DRS starts: You can decline to be assessed for the DRS

●       After DRS starts: You can opt out but this will be considered a failure from the scheme

What happens when you opt out:

Opt-out Timing and Consequences

Step 1: Contact the IPTO

The Insolvency and Public Trustee's Office (IPTO), under the Ministry of Law, handles all DRS opt-out applications.

1.      Call the IPTO at [BLANK - insert current phone number]

2.      Tell them you want to opt out of DRS

3.      Ask for guidance on the opt-out process

4.      [BLANK - verify if appointment needed: Schedule an appointment if required]

Step 2: Make your decision

If you want to opt out BEFORE DRS starts:

5.      Inform IPTO that you decline to be assessed for DRS

6.      Provide written notice of your decision

7.      Your case will be referred back to High Court

8.      The bankruptcy order will be made

If you want to opt out AFTER DRS starts:

9.      Inform IPTO that you want to exit the DRS

10.  Provide your reasons for opting out

11.  You will receive a Certificate of Failure

12.  IPTO will inform your creditors

Step 3: Submit your decision

Contact: Insolvency and Public Trustee's Office (IPTO)

Methods:

●       In person: 45 Maxwell Road, #07-11 The URA Centre (East Wing) Singapore 069118.

●       By phone: 1800 2255 529

●       By post: 45 Maxwell Road, #07-11 The URA Centre (East Wing) Singapore 069118.

●       Online: https://www.mlaw.gov.sg/e-services/

Required information:

●       Your DRS case number

●       Written explanation of your decision

What happens after you opt out

Processing time: 2 weeks

You will be notified via: Letter

If you opted out BEFORE DRS started:

●       Your case goes back to High Court

●       Bankruptcy order will be made

●       You will go through full bankruptcy proceedings

If you opted out AFTER DRS started:

●       You receive a Certificate of Failure

●       IPTO informs all your creditors

●       Creditors may file a fresh bankruptcy application against you

●       You will likely face bankruptcy proceedings

Important consequences of opting out

DRS vs Bankruptcy Comparison

Before opting out, understand that:

●       You will lose DRS protection and creditors can file fresh bankruptcy applications

●       Your assets may be seized and sold to pay creditors

●       Bankruptcy will appear on your credit record for at least 5-7 years

●       You will face bankruptcy restrictions on employment, travel, and financial activities

What to do if you need help

Get advice before opting out: Contact a lawyer specializing in insolvency (which means dealing with people who cannot pay their debts) or a credit counseling service.

For questions about the process: Contact the Insolvency and Public Trustee's Office (IPTO) at:

●       Phone: 1800 2255 529

●       Email: https://www.mlaw.gov.sg/e-services/

●       Office: 45 Maxwell Road, #07-11 The URA Centre (East Wing) Singapore 069118.

For more information about DRS, visit https://io.mlaw.gov.sg/debt-repayment-scheme/about-debt-repayment-scheme/