SINGAPORE – More people are being declared bankrupt in Singapore, going by the latest official statistics, although their age distribution has largely stayed the same.
Personal bankruptcy cases reached 482 in the first quarter of 2026, up from 378 in the same period in 2025, according to data from the Ministry of Law (MinLaw).
A spokesperson for MinLaw told The Straits Times there are five reasons why most people become bankrupt. These are business failure; overspending on consumer goods and services; unemployment or retrenchment; acting as a guarantor for a business or another individual; and insufficient income to meet daily expenses.
Such information is declared to the authorities when a person applies for bankruptcy in Singapore or is made bankrupt by a creditor.
The age distribution of bankrupts has remained largely stable year on year, MinLaw noted.
Between 2016 and September 2025, those aged 40 to 54 formed the largest group of bankrupts, accounting for almost half, or 47 per cent, of the 12,238 cases.
Those aged 25 to 39 made up 29 per cent, and those aged 55 and above constituted 24 per cent. Just under 1 per cent, or 52 individuals, were aged 24 and below.
Declaring bankruptcy should be seen as a last resort, experts said.
Ms Jean Lee, fund-raising manager at Adullam Life Counselling, advised borrowers to seek help early before their debt grows out of control.
“When the debt is smaller, it is easier to talk to creditors,” she said.
However, some hesitate to come forward and will try to resolve the problem on their own.
“The natural reaction is to take debt to pay debts. You solve today’s problem (but) it becomes tomorrow’s problem,” said Ms Lee, whose organisation is a social service agency that helps individuals struggling with debt to avoid bankruptcy.
Mr Jonathan Ong, a licensed insolvency practitioner, said in most bankruptcy cases that he has come across, debtors would have already exhausted all borrowing avenues before seeking help.
By then, it will not be possible to repay or restructure their debt based on their personal or employment situation, added Mr Ong, director of restructuring and insolvency at EisnerAmper Singapore, a global accounting, tax and business advisory firm.
MinLaw data shows that personal bankruptcies hit a post-pandemic peak in 2025. There were 1,623 cases in 2025, the highest since 2019, when 1,645 individuals entered insolvency.
In 2025, Adullam Life Counselling saw a 13 per cent increase in the number of people seeking help with debt issues, reflecting financial strains on the ground.
Ms Lee said they come from all walks of life, with 10 per cent classified as low-income earners, 85 per cent as middle-income earners and 5 per cent in the high-income group.
The number of scam victims seeking help has risen in the last one to two years, she also noted.
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