BANKRUPTCY CASES

Column No : 480

BANKRUPTCY CASES: 3.

Assoc. Prof. Ong Soh Khim asked the Deputy Prime Minister and Minister for Law since the year 2000 (a) what percentage of bankruptcy cases each year are in the age groups of 21-30, 31-40, and above 40; (b) what are the main causes of bankruptcy for the age groups of 31-40 and above 40; and (c) how many of the bankruptcy cases in these age groups have since been discharged.

The Senior Minister of State for Law (Assoc. Prof. Ho Peng Kee) (for the Deputy Prime Minister and Minister for Law): Sir, Prof. Ong asked for statistics from the year 2000. The Official Assignee captures statistics for age groups only from the year 2003. In 2003, new bankrupts between the ages of 21 and 30 years made up 7.1% of the total number of new bankrupts that year. In 2004 and 2005, the figures were 9.4% and 9.9% respectively. As for those between 31 and 40 years old, the percentage was 35.4% in 2003; 34.7% in 2004; and 33% in 2005. For those above 40 years old, the percentage was 57%, 55.6% and 56.5% in 2003, 2004 and 2005 respectively.

Sir, the main causes of insolvency for bankrupts who are 31 years old and above were default in repayment of credit card debts, which is the main case, and other credit facilities, standing as guarantor and business failure. 242 bankrupts, or 2.1%, from these age groups and who were made bankrupts from the years 2003 to 2005 have been discharged.