A BILL was introduced in Parliament yesterday to give a lifeline to those facing bankruptcy.

It proposes that people with debts of up to $100,000 be given a maximum of five years to repay the sums.

This Debt Repayment Scheme (DRS) is provided in the Bankruptcy (Amendment) Bill.

Such a scheme was suggested last year by the Law Ministry to help wage-earners repay their loans instead of being taken to court and made bankrupt.

A debtor on the scheme has to come up with the repayment plan, which has to be approved before being implemented.

If the debtor fails to cooperate, or proves himself to be dishonest by hiding his assets, an administrator appointed by the Official Assignee can declare the plan has failed and advise that the debtor be made a bankrupt.

These DRS debtors may not be required to repay their debts in full, but creditors are assured they will not receive an amount less than what they could have got had the debtor been made a bankrupt.

Another Bill which was introduced would allow entrepreneurs under the age of 21 to enter into business contracts for which they can be sued.

Currently, the Civil Law Act allows those younger than 21 to enter into a contract, but in most cases they cannot be sued should they breach the terms.

The Civil Law (Amendment) Bill is aimed at promoting enterprise and risk-taking among the young.

Two other pieces of legislation were also introduced, including the International Interests in Aircraft Equipment Bill. This would facilitate aircraft leasing and financing in Singapore.

This article was first published in The Straits Times on November 18, 2008.