Debt Collection in Singapore

A presentation brought to youby Lawyers-Singapore.com

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The Legislation on Debt Recovery in Singapore >>

• The only legislation referring to companies in Singapore with late payments is the Insolvency Law.

• According to the Insolvency Law, most debt proceedings are conducted in Court.

• Our Singapore lawyers are specialized in various legal areas and can represent you in Court in any litigation case.

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>> The Legislation on Debt Recovery in Singapore

• Singapore does not have a specific legal framework regarding how debt collection proceedings should be handled.

• The reason why Singapore does not have a specific legislation on debt collection is because this city-state has a good payment culture, late payments being registered rarely. 

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Types of Debt Recovery in Singapore

• The debt collection procedure in Singapore implies two phases:

amicable settlement;

court proceedings. 

• Our attorneys in Singapore can provide you with legal counseling in debt collection procedures.

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Amicable Settlement in Singapore >>

• The first step towards debt recovery in Singapore is an amicable settlement between parties.

• It is very important to verify the debtor’s solvency status because if an insolvency procedure has commenced, debt recovery is no longer possible.

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>> Amicable Settlement in Singapore

• If debt collection is possible the first step would be to notify the debtor about the outstanding amount by sending out dunning letters.

• If the debtor does not respond to the dunning letter, a collection officer may visit the debtor for an amicable settlement.

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The Structure of the Legal System in Singapore

• Singapore’s legal system is comprised of State Courts that comprises the following judicial entities:

Magistrate Court;

District Courts;

Supreme Courts (that is made up of the High Court and the Court of Appeal). 

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Court Proceedings for Debt Recovery in Singapore >>

• When it comes to debt recovery proceedings, the court judging the case will depend on the amount of money to be recovered.

• Therefore, for debts not exceeding 10,000 S$ the plaintiff may file a petition with the Small Claim Tribunal.

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>> Court Proceedings for Debt Recovery in Singapore

• Civil cases with debts that do not exceed 60,000 S$ are handled by the Magistrate Court, while cases in which the debt ranges between 60,000 S$ and 250,000 S$ will be handled by District Courts.

• The High Court will rule in cases where the amount to be recovered exceeds 250,000 S$.

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The Phases of the Court Proceedings in Singapore >>

• The first step in order to recover a debt in Singapore will be sending a demand letter for the debtor to pay the outstanding amount and the late payment interests.

• The creditor will file a writ of summons served by the court to the debtor.

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>> The Phases of the Court Proceedings in Singapore

• The debtor will then have from 8 to 14 days to file a defense.

• Based on that the court will examine both parties’ evidence and makes a decision.

• If you are dealing with debt recovery in Singapore our local lawyers can help you recollect a debt in this city-state.

• All you have to do is to contact our law firm in Singapore.

Thank you for your attention!

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office@lawyers-singapore.com

http://www.lawyers-singapore.com/

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