It’s a vicious cycle when you’re in a financial spiral and unemployed. On one hand, you need income in order to pay your debts, but yet at the same time, debt is the very thing preventing you from earning more income.
In the case of Joel Choy, it took him seven years after he declared bankruptcy before he could move on from it all.
“Everything fell apart in an instant. I lost my sense of self and everything I had worked tirelessly for, my savings and my property,” said Mr Choy, who fell into depression and stopped working for a few months, he said to the Straits Times.
He added that “the whole bankruptcy was a refresh. It allowed me a fresh start from the overwhelming debt”.
“When you’re going through it, it can feel very dark,” he said. “But there is light at the end of the tunnel, as long as you take it step by step.”
Mervyn Ho, General Manager at RMI, believes Joel’s experience shows bankruptcy is not the only way out from severe financial distress.
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“He treated recovery as a long-term structured plan and approached his plan with conviction and discipline.”
“Joel did not appear to rush towards getting out of a difficult situation and recognised that recovery requires time and a sustained disciplined effort.”
“He would have managed his plan which was built around his financial means and capabilities and would have avoided risk, opting for a conservative approach especially when it comes to trading,” Mervyn added.
In addition, individuals facing bankruptcy can access various skills upgrade and employment support programmes through government agencies and non-profit organisations.
These initiatives, primarily offered by Workforce Singapore (WSG), NTUC-Employment and Employability Institute (e2i), and Credit Counselling Singapore (CCS), aim to improve job prospects and financial stability.
Need more advice on how to ensure your financial woes don’t hurt your long-term employability? Here are some insights from Mervyn.
What does going bankrupt mean for your career?
Bankruptcy can have professional implications in Singapore, particularly for roles involving financial responsibility or trust.
In Singapore, an undischarged bankrupt may be restricted from holding certain positions within the financial services space. The Monetary Authority of Singapore (MAS) assess personally financial soundness as a criteria as part of their fit and proper requirements.
Outside of the financial services sector, bankruptcy affect your eligibility for roles in finance or accounting where responsibilities include financial control, payment authority or the handling of money would be required. Typically, an individual’s credit worthiness and financial integrity would be a factor when assessing a person’s suitability for such roles.
Certain professions such as lawyers, financial advisers, insurance agents, and even the public sector roles (including law enforcement), may face additional challenges in maintaining practising rights or continued employment following a bankruptcy.
Can a bankrupt apply for a job? How does it factor into a potential employer’s assessment for a job?
Yes, but there are restrictions in place, such as acting as a director or being part of the management of a company without the explicit permission from the Official Assignee.
From an employer’s perspective, bankruptcy follows a risk-based approach and is assessed based on the responsibilities that comes with the available role.
If the role comes with financial authority and involves managing funds or handling money, bankruptcy would be a severe roadblock.
What advice would you have for someone who’s looking to improve their career opportunities after a bankruptcy?
Disclose and declare the bankruptcy during the interview phase and provide explanation for the bankruptcy, if possible.
If the interview proceeds further, that will imply that the hiring company would have assessed and accepted the risk.
For those looking to return to the financial services sector, finance or accounting roles, explore adjacent roles that are in non-regulated positions for financial services, or roles with less direct control over money matters, such as middle office or back office, business or compliance supporting roles, or finance operations.
What are some career do’s and don’ts for someone who is a bankrupt?
Do:
- Stay employed where possible and meet all bankruptcy obligations, including reporting requirements and financial contributions.
- Build a consistent work record to rebuild trust and demonstrate reliability.
- Practise strict financial discipline and avoid taking on unnecessary debt.
- Seek approval from the Official Assignee if you are offered a promotion or transfer that may fall within restricted areas.
Don’t:
- Apply for roles or appointments that are legally restricted without the necessary approvals.
- Conceal your bankruptcy status when disclosure is required, as this may lead to legal or professional consequences.
- Take on high-risk roles involving significant funds, payment authority or senior management responsibilities while undischarged.
Comply with the restrictions that are in place and if in doubt, consult the Official Assignee and obtain relevant approvals before accepting the role.
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