- MinLaw is seeking public feedback on changes to the Debt Repayment Scheme (DRS).
- Proposed changes aim to prevent abuse and ensure the scheme remains relevant and effective.
- Consultation closes on 27 June 2025 and feedback can be submitted online.
Singapore is updating its DRS to prevent abuse and ensure effectiveness—public feedback is now open on the proposed amendments.
Public Consultation Launched
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”).”
About 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.
- Helps debtors avoid bankruptcy
- Applies to debts not over S$150,000
- Allows for higher repayments to creditors than bankruptcy
- Repayment plans last up to five years
- Supervised by the Official Assignee
Debtors are freed from what they owe when they finish the plan.
Review Objectives
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.
Proposed Key Amendments
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.
- A new criminal offence for those soliciting for bankruptcy applications in the course of business
- Disqualification if debtor fails to pay preliminary fees
- Disqualification for taking on debts with no reasonable expectation of being able to pay
- New ground for scheme failure if debts are incurred with no reasonable expectation of being able to pay
- Creditors have a new four-week deadline to file proof of debt
New rules aim to prevent abuse and ensure the scheme remains effective.
Public Consultation Process
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.
