More people in Singapore were declared bankrupt in the first quarter of 2026, even as the overall age profile of bankrupt individuals remained broadly unchanged, according to the latest Ministry of Law statistics. Personal bankruptcy cases rose to 482 in the first three months of 2026, up from 378 in the same period in 2025. MinLaw said the main reasons people become bankrupt are business failure, overspending on consumer goods and services, unemployment or retrenchment, acting as a guarantor for another person or business, and insufficient income to cover daily expenses.
The data showed that people aged 40 to 54 continued to make up the largest share of bankrupts, accounting for 47 per cent of cases between 2016 and September 2025. Those aged 25 to 39 represented 29 per cent, while those aged 55 and above accounted for 24 per cent. Fewer than 1 per cent were aged 24 and below. MinLaw said the distribution has stayed largely stable over time.
Experts said bankruptcy should remain a last resort, urging people facing debt problems to seek help early before their situation worsens. Counselors noted that many borrowers try to solve debt by taking on more debt, which can deepen the crisis. In many cases, debtors only seek help after exhausting all borrowing options and are no longer able to restructure repayments based on their income or employment situation.
MinLaw data also showed that personal bankruptcies reached a post-pandemic high in 2025, with 1,623 cases, the highest annual figure since 2019. Social service agency Adullam Life Counselling reported a 13 per cent rise in people seeking help with debt issues in 2025. The agency said most of its clients were middle-income earners, while a smaller share were low-income and high-income earners. It also said the number of scam victims seeking help has increased in the past one to two years, with a sharp rise in 2025.
Some scam victims were persuaded to borrow money to continue paying fraudsters, leaving them with both credit card and moneylender debts. One man, identified only as Alex, was declared bankrupt after falling for an investment scam on Facebook and accumulating $330,000 in credit card debt. He said the monthly repayments became impossible to manage and his application for a debt consolidation plan was rejected before he sought help and was advised to file for bankruptcy.
Another case, Joseph, lost his semiconductor manufacturing business during the Covid-19 pandemic after taking on heavy business-related expenses and loans. He eventually owed about $400,000 and was declared bankrupt in 2020. Now in his 50s, he works as a delivery driver while rebuilding his life.
The article also noted that people with smaller debts may be assessed under Singapore’s Debt Repayment Scheme after filing for bankruptcy, but some debt consultancy firms allegedly mislead borrowers into believing bankruptcy will allow them to pay only a fraction of what they owe. MinLaw and the social service sector say bankruptcy should be treated as a financial reset only after all other options have been considered.
