Struggling with Debt? Avoid Bankruptcy with a Voluntary Arrangement (VA)

What is a Voluntary Arrangement?
A Voluntary Arrangement (VA) is a formal, legally binding agreement negotiated between you and your creditors. It allows you to repay part or all of your debts over an agreed period (usually 1 to 3 years). By opting for a VA, you avoid the severe restrictions and social stigma of formal personal bankruptcy while taking decisive control of your financial rehabilitation.

If you maintain a steady income but are overwhelmed by ballooning interest rates and aggressive collection tactics, a VA could be one of the options to address your financial issues. For Voluntary Arrangement, our specialist will be the appointed Nominee to administer the process.

Assess Your VA Eligibility

How ClearView Helps: The Role of the Nominee
Singapore law dictates that a VA would have to be carried out by an insolvency practitioner. ClearView works with the solicitors to apply to Court for approval to table a repayment plan to the creditors and convene the scheme creditors' meeting to seek approval from the creditors for the plan approval. Once the creditors have approved the repayment plan and it is sanctioned by the Court, it is binding on all creditors under the VA Scheme.

WHY CHOOSE A VA?

The Advantages of a Voluntary Arrangement

A VA offers an alternative to bankruptcy. Discover how this legal framework protects your career and assets.

Avoid Bankruptcy Stigma

Your name will not be published in the bankruptcy register, and you will not be subjected to travel, employment, and business ownership restrictions.

Freeze Interest & Charges

Once your VA proposal is approved, all participating creditors are legally required to freeze accumulating interest and late penalty fees, stopping your debt from ballooning.

Retain Your Assets

Unlike formal bankruptcy where assets are liquidated to pay creditors, a well-structured VA allows you to retain control over your assets.

Legally Binding Protection

Once approved by your creditors, the VA is a legally binding agreement. Scheme creditors cannot demand additional payment or initiate legal proceedings against you. The agreed repayment sum under the VA Scheme is considered full and final settlement of the scheme creditors’ debts.

THE VA PROCESS

How a Voluntary Arrangement Works

01

Financial Assessment

ClearView confidentially reviews your income, living expenses, and total liabilities to determine exactly how much you can afford to offer for the repayment to the creditors.

02

Drafting & Interim Order

ClearView works with solicitors to prepare the VA proposal. The solicitors will apply to the Court for an Interim Order, granting you immediate legal protection from creditor enforcement.

03

Creditors' Meeting

As your Nominee, ClearView convenes and chairs a meeting with your scheme creditors to present the proposal. If the requisite 75% in value and majority in number of the scheme creditors vote in favor of the VA Scheme, the VA Scheme becomes legally binding on all the scheme creditors.

04

Repayment & Completion

You make your agreed repayment based on the agreed milestones. Once you have completed the repayment plan, any unpaid debt is legally written off.

Ready to Negotiate a Way Out of Debt?

Do not wait until bankruptcy is your only option. Speak with our licensed insolvency practitioners today to see if a Voluntary Arrangement is the right option to deal with your financial distress situation.

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