- Acknowledgment of debt
- A written statement, signed by the debtor, that admits the debt. For most contract debts it restarts the six year limitation period from the date it is given. See time limits to recover a debt.
- Adjudication
- A fast process under the Building and Construction Industry Security of Payment Act 2004 for deciding payment disputes in the construction industry. See construction payment claims.
- Bad debt
- A debt the creditor no longer expects to recover and writes off in its accounts. See writing off a bad debt.
- Creditor
- The person or business owed money.
- Debt collection agency
- A business that collects debts on behalf of others. In Singapore it must hold a Police licence under the Debt Collection Act 2022 from 1 March 2024. See how debt collection works in Singapore.
- Debt Collection Act 2022
- The Singapore law that regulates debt collection businesses and their collectors. It came into force on 1 December 2023. See what debt collectors can and cannot do.
- Debtor
- The person or business that owes the money.
- Enforcement
- The steps a creditor takes, through the courts, to make a debtor pay after a judgment or tribunal order. See enforcing a judgment.
- Instalment plan
- An agreement for the debtor to pay the debt in parts over time. It should be in writing and state the amounts and dates. See payment plans for debtors.
- Judgment debt
- The sum a court orders a debtor to pay once a claim is decided in the creditor’s favour.
- Letter of demand
- A formal written notice stating the amount owed, what it is for, and the deadline to pay before further action. See letter of demand.
- Limitation period
- The time within which a claim must be started. For most contract debts in Singapore it is six years from when payment fell due. See time limits to recover a debt.
- Liquidator
- The person appointed to wind up a company, collect its assets and pay its creditors in the order the law sets. See when a company debtor closes down.
- Memorandum of Consent
- A document both parties sign to let the Small Claims Tribunals hear a claim above S$20,000 and up to S$30,000. See Small Claims Tribunals.
- Proof of debt
- The form a creditor files with a liquidator or trustee to claim a share of what is paid out. See when a company debtor closes down.
- Small Claims Tribunals
- Part of the State Courts that hears certain claims up to S$20,000, or S$30,000 with a Memorandum of Consent, without lawyers. See Small Claims Tribunals.
- Statutory demand
- A formal demand under the Insolvency, Restructuring and Dissolution Act 2018. For a company debt over S$15,000, if the company does not pay within 21 days it can be presumed unable to pay its debts. See statutory demands.
- Striking off
- Removal of a company from the register by ACRA, which dissolves it. See when a company debtor closes down.
- Time barred debt
- A debt for which the limitation period has run out, so a claim to recover it can be defended on that ground. See time limits to recover a debt.
- Winding up
- The process of closing a company, collecting its assets and paying its creditors. A creditor can apply to court to wind up a company that cannot pay its debts. See statutory demands.
- Writ of distress
- A court process under the Distress Act 1934 that lets a landlord recover rent arrears by seizing goods at the premises. See rent arrears.
Reference
Debt collection glossary
Plain definitions of the terms you will meet when recovering a debt in Singapore, from a letter of demand to a writ of distress. Each term links to the guide that explains it in full.
What is the difference between a letter of demand and a statutory demand?
A letter of demand is an ordinary written request to pay, which anyone can send. A statutory demand is a formal notice under the Insolvency, Restructuring and Dissolution Act 2018 that can lead to winding up or bankruptcy if it is not met.
What does time barred mean for a debt?
It means the limitation period has passed. For most contract debts in Singapore that is six years from when payment fell due, unless the debtor acknowledged the debt in writing or made a part payment, which restarts the period.
Who is the creditor and who is the debtor?
The creditor is owed the money. The debtor owes it.
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