With the world economy running into a state of uncertainty amid the COVID-19 pandemic, many people are realizing the need for maintaining good financial health and managing their funds more effectively. This also includes the subject of bankruptcy and insolvency as the number of bankruptcy applications has reached a 15-year high in March this year. If not for temporary measures that were implemented in April to raise the thresholds for bankruptcy, the number of bankruptcy applications may have continued to skyrocket.

Downside of Filing for Bankruptcy

How does one become bankrupt? According to the Bankruptcy and Insolvency Act of Singapore, creditors may file a bankruptcy application against a debtor or a debtor can file a voluntary application to start the bankruptcy proceedings. Either way, bankruptcy is not an easy way to get out of debt and should not be taken lightly. For one, there are heavy financial consequences because th...