Introduction

The fees charged by insolvency practitioners can sometimes be a matter of contention, with different interested parties having differing expectations. Further, there is no comprehensive set of guidelines or regulations in Singapore setting out the basis on which insolvency practitioners should determine their fees, as well as the level of information on fees that should be provided to stakeholders. This sometimes leads to unhappiness as to the quantum and necessity of fees after the event.

Introduction

On 14 July 2015, the Singapore Parliament passed the Bankruptcy Amendment Bill, which seeks to establish certain reforms in Singapore’s bankruptcy regime.

Senior Minister of State for Law Indranee Rajah said in Parliament that the changes address the striking of a balance between the need to hold bankrupts accountable and allowing them to have the opportunity to make a fresh start in their financial affairs after a reasonable period of time.

In this Update, we highlight key aspects of these reforms, which include: