UNDISCHARGED BANKRUPTS

[Mr Speaker in the Chair]

Assoc. Prof. Walter Woon asked the Minister for Law (a) how many bankrupts remain undischarged, giving a breakdown of how long they have been bankrupt, and (b) what steps have been or will be taken to return such persons to productive employment or business.

The Senior Parliamentary Secretary to the Minister for Law (Assoc. Prof. Ho Peng Kee) (for the Minister for Law): Mr Speaker, Sir, as at 31st October 1996, 12,853 bankrupts remain undischarged. Of these, 1,007 are persons who cannot be traced. Of the remaining 11,846 bankrupts, 5,106 (43%) have been bankrupts for less than five years, 3,797 (32%) for between five and 10 years, and the rest for more than 10 years.

Since the successful implementation of the new Bankruptcy Act, which came into force on 15th July last year, far more persons are being discharged from bankruptcy each month than are being made bankrupt. The number of persons discharged from bankruptcy has also risen from 554 in 1994 to 1,926 in 1995. So we can see the effect of the new regime.

The Official Assignee encourages bankrupts to obtain gainful employment to expedite their discharge from bankruptcy. In fact, the Official Assignee urges unemployed bankrupts to register with the Ministry of Labour to seek assistance in finding a job. The Official Assignee will continue to provide such counselling to bankrupts to help them find work. Indeed, a large number of bankrupts are working and actively contributing towards settling their debts.

In addition, the Official Assignee will be setting up a Special Project Team ("SPOT") in early 1997 to re-examine the cases of all undischarged bankrupts and advise them of the steps they ought to take to expedite their discharge from bankruptcy.