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SINGAPORE \u2013 More people are being declared bankrupt in Singapore, going by the latest official statistics, although their age distribution has largely stayed the same.<\/p>\n
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).<\/p>\n
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.<\/p>\n
Such information is declared to the authorities when a person applies for bankruptcy in Singapore or is made bankrupt by a creditor.<\/p>\n
The age distribution of bankrupts has remained largely stable year on year, MinLaw noted.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Declaring bankruptcy should be seen as a last resort, experts said.<\/p>\n
Ms Jean Lee, fund-raising manager at Adullam Life Counselling, advised borrowers to seek help early before their debt grows out of control.\u00a0<\/p>\n
\u201cWhen the debt is smaller, it is easier to talk to creditors,\u201d she said.<\/p>\n
However, some hesitate to come forward and will try to resolve the problem on their own.<\/p>\n
\u201cThe natural reaction is to take debt to pay debts. You solve today\u2019s problem (but) it becomes tomorrow\u2019s problem,\u201d said Ms Lee, whose organisation is a social service agency that helps individuals struggling with debt to avoid bankruptcy.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n