There are many people facing financial difficulties due to the global economic recession and continued high interest rates.
While the financial market is unstable, there are probably many people suffering from debt that has snowballed.
We will provide you with detailed information about the ‘Personal Rehabilitation System’, which can provide a ray of hope in your frustrating times.
First, get a debt adjustment diagnosis, and if you meet the requirements for personal rehabilitation, be sure to apply and get help.
personal rehabilitation
Diagnosing Personal Rehabilitation Debt Adjustment
personal rehabilitation
Find out about personal rehabilitation system
What is personal recovery plan?
The personal rehabilitation system is a system to provide relief to individual debtors who are unable to repay their debts due to financial difficulties.
A person who is capable of receiving a steady stream of income under a repayment plan approved by the court;
If you repay a certain amount in installments over 3 years (within 5 years if there are special circumstances), you can be exempted from the remaining debt.
If you do not have consistent income, please use the bankruptcy exemption system.
personal rehabilitation
Go to Personal Rehabilitation and Debt Adjustment Consultation (Credit Recovery Committee)
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personal rehabilitation
personal rehabilitation
Eligibility to apply for personal rehabilitation
Application for personal rehabilitation
-Individual debtors whose total debt is less than KRW 1 billion in unsecured debt and KRW 1.5 billion in secured debt
– Individuals who are ‘salary earners’ and ‘business income earners’ with a certain income and are currently unable to pay due to excessive debt or are concerned about insolvency can apply.
-Debtors who are using the Credit Recovery Committee support system, people who are in bankruptcy or rehabilitation procedures, and debtors who are using the support process under the bad bank system can also apply.
personal rehabilitation
personal rehabilitation
personal rehabilitation
How to apply for personal rehabilitation
To apply for personal rehabilitation, you must submit an application to the main office of the local court that has jurisdiction over the debtor’s address.
▶How to fill out the application form
-The personal rehabilitation application must include the debtor’s resident registration number and address, the purpose and cause of the application, the debtor’s assets and debts, and a home or work phone number or mobile phone number where the debtor can be contacted.
-Detailed information regarding asset and debt details is included in the asset list and personal rehabilitation creditor list included in the application attachments.
Therefore, in the body of the personal rehabilitation application form, you can write, “I am responsible for the same debts as listed in the personal rehabilitation creditor list, and my assets are as listed in the property list.”
▶ Documents attached when applying for personal rehabilitation
You must attach the following documents to the application for initiation of personal rehabilitation procedures.
personal rehabilitation
Go to download the personal rehabilitation application form
1) 1 copy of list of individual rehabilitation creditors
2) 1 copy of property list
3) List of debtor’s income and expenses
4) Data proving that you are a salary earner or business income earner
– Salary earners: 1 copy of earned income tax withholding receipt or 1 copy of income certificate
-Business income earner: 1 copy of business registration certificate (submit only if present), 1 copy of comprehensive income tax final return or 1 copy of business income amount certificate or 1 income statement and 2 confirmation letters
5) 1 copy of the debtor’s income and expenditure list
6) Documents proving property: 1 copy of the register of owned real estate, 1 copy of car registration certificate
7) Copy of resident registration and family relationship certificate
8) Repayment plan
-The repayment plan does not necessarily need to be attached to the application for initiation of personal rehabilitation procedures, and must be submitted within 14 days from the date of application. However, to expedite the process, it is recommended that you submit an application for initiation of personal rehabilitation procedures and a repayment plan together.
9) 1 copy of statement
10) Other required documents depending on the case details of each applicant
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personal rehabilitation
personal rehabilitation
Personal rehabilitation application process
Please refer to the personal rehabilitation application and processing procedures as follows.
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Personal rehabilitation procedure
personal rehabilitation
personal rehabilitation
personal rehabilitation
Submission of personal rehabilitation documents (court headquarters)
An application for personal rehabilitation must be submitted to the ‘head office of the local court’ that has jurisdiction over the debtor’s address.
personal rehabilitation
Personal rehabilitation application submission to court
▶Check the submission destination!
If you are a borrower residing in Bucheon City, you must submit the application to the Incheon District Court, rather than submitting the application to the Bucheon Branch of the Injeon District Court. However, a person with an address in Seoul must submit an application to the ‘Seoul Rehabilitation Court’ even if the court with jurisdiction over the address is the Seoul Eastern District Court or the Southern District Court.
personal rehabilitation
personal rehabilitation
personal rehabilitation
Personal rehabilitation application cost
When applying for personal rehabilitation, a stamp fee and delivery fee are required.
-Stamp: A 30,000 won Korean government revenue stamp must be attached to the application.
– Delivery fee: The delivery fee for one batch is 5,200 won, and must be paid by multiplying the delivery fee for 10 batches by the number of creditors.
For example, if there are 5 creditors, you must pay 52,000 won + (5x8x5,200 won) = 260,000 won.
personal rehabilitation
personal rehabilitation
personal rehabilitation
Personal rehabilitation application cost
Above, we have learned about the qualifications, methods, and application process for applying for personal rehabilitation.
The personal rehabilitation system is a great help to those who are struggling with unavoidable personal debt, so do not be discouraged and apply quickly to receive help.
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