Bankruptcy Cases Piling Up In Courts
By Ignatius Stephen

Bandar Seri Begawan - People in Brunei are being made bankrupt at the drop of a hat.

Anyone can be made a bankrupt in the Sultanate for owing as little as $750. So much so, the courts are facing an avalanche of bankruptcy cases currently.

A senior court official told the Borneo Bulletin, "There are so many cases that we are finding it hard to keep up with."

Brunei's archaic insolvency laws are one of the reasons, legal sources said. Local lawyers point out that in Singapore, for example, a person is declared an insolvent on the order of the high court if he is unable to pay debts of at least $10,000.

There the rules are very strict, for example, a bankrupt person may not be able to travel overseas without the Official Assignees permission.

He may not also manage businesses or corporations, act as trustees or personal representative or take certain court action without the permission of the Official Assignee.

A bankrupt should also make, if so considered, monthly contributions to clear his debts. There are also ways for a bankrupt to discharge himself if he pays his debts or if he satisfies the Official Assignee the reasons for his discharge.

Whereas in Brunei, while it is easier to slip into bankruptcy the current laws are not as effective as Singapore, some senior lawyers said. Enforcement has always been a problem in Brunei, legal officers said.

"We have adjudged bankrupts driving BMWs and Mercedes and living in palatial homes having the time of their lives. "Some of them continue to run businesses after registering a new firm under their wives or children's names," the lawyers said.

It is also not easy in Brunei, once you are a bankrupt, to get out of it.

"You get into a sort of a morass in trying to sort yourself out," a lawyer said.

In Singapore, the Official Assignee, who is a public servant and an officer of the court, will also assist the unfortunate person in helping a discharge should he obey all conditions imposed.

On the other hand, the Official Assignee will also keep an eye on the insolvent's conduct and any sign of him living beyond his means, for example, owning or driving luxury cars and indulging in a lavish lifestyle will be investigated and drastic actions taken.

The penalty for breaking bankruptcy conditions in Singapore is $10,000 fine or three years' jail or both. -- Courtesy of Borneo Bulletin

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