Couples who have booked wedding venues and fear forfeiting their deposits, and private-hire drivers who are unable to afford monthly instalments on their hire-purchase loans, are among individuals the Covid-19 (Temporary Measures) Bill aims to support.

The proposed law to be tabled by the Ministry of Law (MinLaw) next week will provide relief to individuals and businesses financially impacted by the pandemic for at least six months - and it could be extended for another six by the Law Minister.

It will not absolve or remove their contractual obligations, but suspend them for the prescribed period.

The proposed law will cover event-based contracts, such as those for venue bookings and catering for weddings; tourism-related contracts for goods or services, such as hotel accommodation; and loans granted by banks or finance companies for business purposes.

The Bill covers events that are held on or after Feb 1, and were booked before March 25.

For example, a couple who would have to forfeit their deposit after postponing their hotel wedding planned for March 21 can apply for relief from their contractual obligations.

The ministry will then appoint an assessor, who will decide whether to grant the couple a relief order. If it is granted, the hotel must then restore the deposit.

Conversely, if the hotel believes that it has grounds to keep the deposit, it can state its position to the assessor.

Based on the facts of the case, the assessor will decide on a "just and equitable outcome" for both parties, said MinLaw.

For example, the hotel may be required to return part of the deposit to the couple, after deducting expenses that were reasonably incurred by the establishment.

Alternatively, the hotel may be allowed to keep either the entire deposit or part of it, if the couple decide to cancel the booking.

Couples whose deposits have already been forfeited before the Bill is passed, and whose contracts meet the requirement for the stipulated timeframe, may also be able to get their deposits restored by the hotel retroactively, said Minister for Law and Home Affairs K. Shanmugam.

The same principles that apply to event-based contracts would also apply to tourism-related contracts in the same timeframe.

Private-hire drivers would also be able to seek similar protection.

Citing another example, MinLaw said a driver may not be able to afford his monthly instalments for February and last month because he has had fewer passengers and a reduced income.

Under the proposed law, the finance company providing the loan would not be allowed to repossess the car, or start or continue court or insolvency proceedings against the driver, if he is granted relief.

The assessor may call for the driver to pay one or more instalments during the relief period, depending on the circumstances of the case.

Separately, the Bill will also temporarily revise the limits for bankruptcy, from a monetary threshold of $15,000 to $60,000.

The time period in which an individual must satisfy a statutory demand will also be increased, from 21 days to six months. Similarly, the time period for the setting aside of statutory demands will be increased from 21 days to six months.

The monetary threshold for the Debt Repayment Scheme will also be raised, from $100,000 to $250,000.