A new Insolvency Act that incorporates both the personal and corporate insolvency regimes has emerged as the main recommendation of a committee tasked to review and update Singapore's laws on insolvency, or the inability to repay debts.

Issuing its report today, the Insolvency Law Review Committee recommended that the current Bankruptcy Act be incorporated into the new Insolvency Act.

The new act will consolidate and set out common principles and procedures to deal with both personal and corporate insolvency.

Other recommendations include retaining the receivership regime and enhancing the judicial management process.

The committee was appointed in December 2010 and is chaired by the managing partner of law firm Rajah & Tann, Senior Counsel Lee Eng Beng.

The Law Ministry said it welcomes the report and will carefully consider the recommendations as well as the issues raised.

The recommendations are now open for public consultation. Members of the public can give feedback to the Ministry of Law from now until Dec 2 via email at mlaw_consultation@mlaw.gov.sg.