At least a dozen debt consultants have been touting their services on TikTok, encouraging debtors to apply for bankruptcy — or take on even more debt — to exploit the Debt Repayment Scheme (DRS).
What Is the DRS?
The Debt Repayment Scheme (DRS) is a structured repayment programme administered by the Official Assignee for individuals who owe less than S$150,000 (excluding secured debts) and have a stable income. It is designed as an alternative to bankruptcy — helping debtors repay creditors over a period of up to 5 years without being formally declared bankrupt.
How Unscrupulous Consultants Are Exploiting It
Some debt consultants have been advising clients to take on additional loans — sometimes from unlicensed moneylenders — to artificially raise their total debt and meet DRS eligibility thresholds. This creates a false picture of financial hardship and games the system.
These practices put debtors at significant risk: higher debt loads, dealings with unlicensed lenders, and potential legal exposure under the Insolvency, Restructuring and Dissolution Act.
The Right Way to Approach Insolvency
- Never take on new debt to qualify for a debt relief scheme
- Work only with transparent, reputable consultants who are clear about fees and process
- Seek advice on your actual situation — not a manufactured one
- Understand all your options: DRS, Voluntary Arrangement, or bankruptcy may each be appropriate depending on your circumstances
WeCare's Approach
At WeCare Consultancy, we take pride in providing honest, ethical advice. We will never recommend a path that puts you at greater risk. Our goal is to help you find the most appropriate and sustainable route through insolvency — with full transparency and no hidden agendas.