On 23/05/2013,
you requested for the version in force on 23/05/2013
incorporating all amendments published on or before 23/05/2013.
The closest version currently available is that of 31/10/2009.
56M.
—(1) The Official Assignee may issue a certificate of failure of a debt repayment scheme in respect of a debtor if —
(a)
the debtor submits a statement of affairs under section 56C, or furnishes any other information or document to the Official Assignee in relation to his property, debts or other financial affairs, which is false or misleading in any material particular, or contains any material omission;
(b)
the debtor fails to furnish any information or document relating to his property, debts or other financial affairs that the Official Assignee may require;
(c)
the debtor fails to disclose to the Official Assignee his property (or any part thereof) or the disposal of his property (or any part thereof);
(d)
the debtor attempts to account for any part of his property by fictitious losses or expenses;
(e)
the debtor fails to comply with any term of the debt repayment plan under the scheme;
(f)
the debtor fails without sufficient cause to attend any meeting of creditors convened under section 56H;
(g)
the debtor incurs a debt in excess of $1,000 after the effective date of the scheme without disclosing the fact that he is subject to the scheme to the person to whom the debt is owed;
(h)
the debtor has entered into a transaction with any person at an undervalue at any time during the period commencing 5 years before the day on which the relevant bankruptcy application is made against the debtor and ending on the day immediately preceding the completion of the scheme;
(i)
the debtor has given an unfair preference (which is not a transaction at an undervalue) at any time to —
(i)
his associate during the period commencing 2 years before the day on which the relevant bankruptcy application is made against the debtor and ending on the day immediately preceding the completion of the scheme; or
(ii)
any other person during the period commencing 6 months before the day on which the relevant bankruptcy application is made against the debtor and ending on the day immediately preceding the completion of the scheme;
(j)
knowing or believing that a false or an inaccurate debt has been claimed by any person under the scheme, the debtor fails to inform the Official Assignee;
(k)
the debtor obtains the approval or modification of the debt repayment plan under the scheme by means of fraud, false representation or the concealment of any material fact; or
(l)
the debtor becomes a sole proprietor, a partner of a firm within the meaning of the Partnership Act (Cap. 391) or a partner in a limited liability partnership during the scheme without the consent of the Official Assignee.
[6/2009]
(2) Subsection (1)(c), in relation to the disposal of property, shall not apply to the payment of ordinary expenses of the debtor and his dependants.
[6/2009]
(3) For the purpose of subsection (1)(h), a debtor enters into a transaction with a person at an undervalue if the debtor —
(a)
makes a gift to that person or otherwise enters into a transaction with that person on terms that provide for the debtor to receive no consideration;
(b)
enters into a transaction with that person in consideration of marriage; or
(c)
enters into a transaction with that person for a consideration the value of which, in money or money’s worth, is significantly less than the value, in money or money’s worth, of the consideration provided by the debtor.
[6/2009]
(4) The Official Assignee shall not issue any certificate of failure of a debt repayment scheme under subsection (1) in respect of any transaction entered into by the debtor at an undervalue unless the debtor was insolvent at the time he entered into the transaction or became insolvent in consequence of the transaction.
[6/2009]
(5) Where a debtor enters into a transaction at an undervalue with a person who is an associate of his (otherwise than by reason only of being his employee), the requirements under subsection (4) shall be presumed to be satisfied unless the contrary is shown.
[6/2009]
(6) For the purpose of subsection (1)(i), a debtor gives an unfair preference to a person if —
(a)
that person is one of the debtor’s creditors or a surety or guarantor for any of his debts; and
(b)
the debtor does anything or suffers anything to be done which has the effect of putting that person into a position which is better than the position he would have been in if that thing had not been done.
[6/2009]
(7) The Official Assignee shall not issue any certificate of failure of a debt repayment scheme under subsection (1) in respect of any unfair preference given by a debtor to any person unless the debtor —
(a)
was insolvent at the time he gave the preference or became insolvent in consequence of the preference; and
(b)
was influenced in deciding to give the preference by a desire to produce in relation to that person the effect mentioned in subsection (6)(b).
[6/2009]
(8) A debtor who has given an unfair preference to a person who, at the time the unfair preference was given, was an associate of his (otherwise than by reason only of being his employee) shall be presumed, unless the contrary is shown, to have been influenced in deciding to give it by such a desire as is mentioned in subsection (7)( b).
[6/2009]
(9) The fact that something has been done pursuant to an order of a court does not, without more, prevent the doing or suffering of that thing from constituting the giving of an unfair preference.
[6/2009]
(10) For the purposes of this section, a debtor is insolvent if —
(a)
he is unable to pay his debts as they fall due; or
(b)
the value of his assets is less than the amount of his liabilities, taking into account his contingent and prospective liabilities.
[6/2009]
(11) Any question whether a person is an associate of another person shall be determined in accordance with section 101(2) to (10).
[6/2009]