Can You Lose Your HDB Flat If You’re Declared Bankrupt in Singapore?

For many Singaporeans, owning an HDB flat isn’t just about having a roof over their head – it represents years of hard work and financial stability. That’s why the thought of losing it due to bankruptcy can be incredibly distressing.

If you’re struggling with debts or finding yourself unable to pay a money lender, it’s important to understand how bankruptcy affects your home ownership and what you can do before things spiral further.

Read more: Unable To Pay Your Money Lender? Here’s What Debt Collectors Can & Cannot Do In Singapore

Below, we answer some frequently asked questions about what happens to your HDB flat if you’re declared bankrupt in Singapore, along with practical steps to protect your finances.

What Happens to HDB Flats When You’re Bankrupt?

Here’s the good news: in most cases, you won’t lose your HDB flat even if you’re declared bankrupt.

In Singapore, if at least one of the HDB flat owners is a Singapore Citizen, the property is protected. This means that even in the event of bankruptcy, the Official Assignee (OA) – who manages a bankrupt individual’s assets – does not have the authority to take possession of or sell the flat.

However, there are exceptions. While you can continue staying in your flat, certain restrictions will apply.

All individuals are still required to service their bank or HDB housing loans even after being declared bankrupt. So, while your HDB flat will not be seized immediately, there’s still a risk of losing your home if you’re unable to keep up with your mortgage payments.

Simply put, bankruptcy itself doesn’t automatically take your home away, but failing to maintain your loan repayments might.

What If You Can’t Afford to Repay Your Housing Loan After Bankruptcy?

If you’re struggling to keep up with your monthly housing loan after being declared bankrupt, it doesn’t automatically mean you’ll lose your home, but taking action early is key.

For HDB loans, you may reach out directly to HDB for financial assistance. Depending on your situation, they may allow you to temporarily adjust your repayment schedule or pause your instalments to give you time to stabilise your finances.

You can also explore using your CPF Ordinary Account savings to help cover your housing loan instalments, if you still have available funds. This can serve as short-term relief while you reassess your overall financial plan.

That said, these options are not permanent fixes. If your financial situation remains tight, it might be wise to sell your flat and move to a smaller, more affordable home before arrears build up. This allows you to repay part of your debt while ensuring you still have a place to live.

If your home loan is with a bank rather than HDB, you’ll need to speak directly with your bank to discuss possible repayment arrangements. Some banks may offer temporary relief measures, but these often come with conditions. In many cases, downsizing remains the most practical way to prevent deeper financial strain.

Can a Bankrupt Sell or Buy an HDB Flat?

The short answer: yes. As long as at least one of the flat’s owners is a Singapore Citizen, you do not need the OA’s consent to sell the property. The OA’s approval is only required if none of the owners are Singapore Citizens.

Bankrupt individuals are also allowed to be added as owners of HDB flats or to purchase a new flat. However, there are some limitations to keep in mind:

• A bankrupt may only buy one HDB flat with a maximum 5-room-sized home.
• To purchase larger flats or other types of property, you must obtain OA approval, demonstrating both the financial means to afford the property and a legitimate need for a bigger home.
• Even for a flat of five rooms or smaller, OA approval is required if the flat’s purchase price exceeds $500,000.
  

How to Get Debt Help Before Bankruptcy Proceedings Start

Bankruptcy should always be a last resort, and after you’ve gotten debt help in Singapore. Once declared bankrupt, you’ll face long-term restrictions – such as difficulty obtaining credit, limited overseas travel, and the need to contribute a portion of your income to repay creditors.

If you’re starting to feel the pressure and finding yourself unable to pay a money lender, it’s crucial to act early. You can:

• Negotiate with your creditors to extend payment timelines or lower instalments.
• Seek a Debt Repayment Scheme (DRS) through the Insolvency Office if your total unsecured debt is below $150,000.
• Speak to a licensed financial provider for tailored debt solutions.

While external factors like unexpected expenses or income loss can lead to financial strain, the first step in protecting yourself from debt problems is avoiding loans that don’t serve your needs. Borrowing from unlicensed lenders or taking on loans that you cannot realistically repay only adds pressure and increases the risk of bankruptcy.

A better approach is to work with a licensed loan provider in Singapore, such as Tembusu Financial Services – we offer transparent, responsible lending solutions. By choosing a reputable provider, you can access financial support that aligns with your situation, helping you manage repayments effectively while staying in control of your finances.

Get in touch with us today.