Are you eligible for DRS?

To be eligible for DRS, you need to be a Singaporean or PR and fulfill these 5 requirements:

(a) Total liabilities do not exceed $150,000;
(b) Gainfully employed and earning a regular income;
(c) Not been a bankrupt or been on the DRS in the last 5 years;
(d) Not been subject to a court-based arrangement in the last 5 years; and
(e) Not a sole-proprietor or partner in any firm.

What happens if you don’t fit into these requirements? Fret not, you can contact us for other options and schemes that you are eligible for.

What are my options?

There are 3 roads most debtors can choose when they are unable to repay their debts.

Firstly, do nothing about it and watch your interests accumulate rapidly. Your debt would be a ticking time bomb waiting to explode anytime (i.e. your creditors taking action and suing you for bankruptcy). They will issue you a Writ of Seizure and Sale, where your properties (your HDB will be safe from this) and assets will be seized and put up for sale, including your fridge, tv and other items of value in your home.

Secondly, take a loan from a new creditor to repay the other creditors. You are not fixing the issue and just prolonging the debt duration. Most of our clients end up borrowing from 15 moneylenders just to repay the other creditors chasing them for payment. By doing this, you are increasing your list of creditors and interests incurred. You will be stuck in this debt trap till you are no longer able to find a new creditor to loan you to repay the other 15 moneylenders. Would you be able to handle harassment from 15 different creditors?

Lastly, you can take the first step to seek for professional advice and explore your options. At Stellar Consultants, we aim to provide you with efficient and effective solutions for your debt problems. We have various schemes and solutions specially catered to our clients’ needs. You can set a free and non-obligatory consultation with us to explore your options and plan your next step.

Why should I take DRS?

Debt consolidation

All your debts from different channels (e.g. banks, moneylenders, friends) will be consolidated and repaid to only one party, the Official Assignee. Every month, you only need to make the monthly repayment to the official assignee (Ministry of Law) via the SAM machine or SAM online. The official assignee will handle your money and disburse the money to your creditors.

Protection from harassment

After you applied for the DRS, the appointed case officer from Ministry of Law will hold a creditors’ meeting with your creditors to inform them of your repayment amount made to them monthly. They will be aware of your debt situation and upon acceptance of your monthly repayment plan, you will be making payments directly to the official assignee. Your creditors will not be able to harass you to make payments to them directly.

Stop accumulating interests

Are you aware that you are paying 25% p.a. interest for your credit cards? That is up to $8,000 in interest for a $30,000 debt! With our debt consolidation solutions, you can avoid paying exorbitant interest and repay at a monthly amount that you are comfortable with.

Lower monthly repayments

During our consultation, we will calculate your income and expenses statement and propose a suitable monthly repayment plan within your financial affordability. We will set aside expenses for you and your family and the remaining amount (your disposable income) will be used to determine your estimated monthly repayment amount. For example, if you are taking home $1,800 and your expenses add up to $1,500, your disposable income will be estimated to be $300 and we will propose this as your monthly repayment amount. Your official monthly repayment amount will be subjected to Ministry of Law’s approval.

Debt relief

Most of our applicants have successfully achieved 30% to 70% in debt relief. Read our next post on our Case Study to see how we can achieve this for you and our clients.