Singapore's Ministry of Law is tightening rules on the Debt Repayment Scheme to prevent abuse and is seeking public feedback on proposed amendments by 27 June 2025.
KEY POINTS
IN SIMPLE TERMS
Singapore has a programme that helps people with debts under S$150,000 avoid bankruptcy by paying back what they owe over time. The government wants to make the rules stricter to stop people from gaming the system, and is asking the public what they think about the changes.
WHY IT MATTERS
WHERE DO YOU STAND?
Should the Debt Repayment Scheme rules get tougher to prevent abuse, or should they remain more lenient to help struggling debtors?
👍 👎 Vote ↓Singapore is updating its DRS to prevent abuse and ensure effectiveness—public feedback is now open on the proposed amendments.
In a press release by Ministry of Law, the government is asking Singaporeans and residents for feedback on proposed legislative amendments to the Debt Repayment Scheme (DRS).
The public consultation started on 9 June 2025 and will last three weeks.
MinLaw’s proposals are for changes to the Insolvency, Restructuring and Dissolution Act 2018 and related regulations.
As stated in the Ministry of Law document, “The Ministry of Law (“MinLaw”) launched a public consultation today to seek feedback on the proposed legislative amendments to the Insolvency, Restructuring and Dissolution Act 2018 (“IRDA”) and the Insolvency, Restructuring and Dissolution (Debt Repayment Scheme) Regulations 2020, in relation to the Debt Repayment Scheme (“DRS”).”
The DRS was set up on 18 May 2009 as a voluntary scheme to help people avoid bankruptcy.
It lets debtors with a regular income and debts not over S$150,000 pay off what they owe under a plan supervised by the Official Assignee.
Instead of bankruptcy, a person uses part of their income to pay back debts over up to five years.
Debtors are freed from what they owe when they finish the plan.
The last review of the DRS was in 2016, with changes effective from 30 July 2020.
Now, changes are being proposed to prevent abuse and ensure the scheme remains relevant and effective.
As Ministry of Law stated, “MinLaw intends to make amendments to the IRDA to ensure that the DRS is not subject to abuse, and remains both relevant amid Singapore’s evolving financial landscape and effective in achieving its intended objectives.”
The DRS has been in place since 2009 and MinLaw is now proposing updates to keep it relevant.
The new proposals include making it a criminal offence to solicit business relating to bankruptcy applications.
There will also be two new grounds that make people unsuitable for the DRS, such as not paying preliminary fees or taking on debts they cannot pay.
New rules aim to prevent abuse and ensure the scheme remains effective.
The public has until 27 June 2025 to provide feedback on the proposed amendments to the IRDA.
As stated in the Ministry of Law document, “MinLaw invites members of the public to provide their feedback on the proposed key amendments to the IRDA, in relation to the DRS.”
The full consultation paper is online at https://go.gov.sg/public-consult-drs.
Feedback can be given at https://go.gov.sg/drs-proposed-legis-consult by using the official online form.
Should the DRS rules get tougher to keep up with modern times, or do they need to be more forgiving? Click Agree or Disagree.
Should the Debt Repayment Scheme rules get tougher to prevent abuse, or should they remain more lenient to help struggling debtors?
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