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Mar 10, 2010

New penalties for defaulters

Measures to deter defaults

* DEFAULTERS can be ordered to post a bank guarantee to set aside funds against future defaults.

* The court can impose community-based sentences and order the defaulter to go for financial counselling.

* Claimants of maintenance will be given means to report maintenance debts to credit bureaus to better reflect the credit standing of defaulters.

* People who are registering for their second or subsequent marriage will be required to declare any outstanding maintenance debts.

* The court can issue more orders to defaulters' employers to require them to pay maintenance from the salary of employees who have been ordered by the court to pay maintenance. Complainants will be empowered to obtain employment information of respondents from CPF Board by Court order.

Making enforcement process easier for complainants
*The court will improve processes to make it easier for complainants to enforce maintenance orders.

*The court will be empowered to order parties to furnish information on their financial status.

* HELP Centres (Helping to Empower Litigants-in-Person) have been launched to provide assistance to public who does not have lawyer representation, including complainants who are seeking to enforce maintenance orders.

Besides imposing fine and jail sentence, the court will in future be able to require the defaulter to post a bank guarantee to set aside funds against future defaults applications, mete out community-based sentences and order the defaulter to undergo financial counselling where necessary. -- ST PHOTO: STEPHANIE YEOW

THE Government is cracking down on defaulters to secure maintenance payments for their ex-spouses and children, as more couples in Singapore divorce. Those who fail to pay maintenance on time will face tougher penalties and sanctions, warned Minister for Community Development, Youth and Sports Vivian Balakrishnan in Parliament on Wednesday.

To address the high incidence of defaults, which rose by 10 per cent from 3,266 applications in 2008 to 3,585 last year, Dr Balakrishnan said the Women's Charter will be amended to give the court powers to enforce maintenance orders against those who neglect their obligations to their children and wives, and also to make the process less onerous for claimants.

Besides imposing fine and jail sentence, the court will in future require the defaulter to post a bank guarantee to set aside funds against future defaults applications, mete out community-based sentences and order the defaulter to undergo financial counselling where necessary.

The court can also order employers to pay maintenance from the salary of employees, who have defaulted on such payment. Claimants will also be given means to report maintenance debts to credit bureaus to better reflect the defaulters' credit standing.

Dr Balakrishnan added that MCYS will also require persons who are registering for their second or subsequent marriage to declare any outstanding maintenance debts. The Subordinate Courts will also improve their processes to make it easier for complainants to enforce maintenance orders.

Explaining why a tougher stance is called for, the minister said the high incidence of defaults showed that the current measures may not be sufficient to deter defaults. At the same time, many complainants, mostly women with children, face difficulties in navigating the process of seeking enforcement. They have to attend court at various stages of the enforcement process, and this affects their jobs and childcare arrangements. In cases where the complainants face repeated defaults, they would have to go through the entire process again.

Read the full report in Thursday's edition of The Straits Times.

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