Application
(or filing) fee |
heavy cost
(\800,000~\2,000,000) |
affordable cost(\50,000)
(free for people on public assistance) |
Suspension of
debt collection |
takes about 1~2 months |
from the following day of application |
| Application process |
takes 6~12 months (for approval of repayment
plan or bankruptcy discharge order) |
relatively short until final agreement
(about 2 months) |
| Necessary documents |
complicated |
simple |
Debt collection
on guarantors |
possible |
suspended |
Limit to small
amount of debt |
filing with small amount of
debt rarely accepted |
no limit to small amount of debt |
Range of living
expenses |
living expenses unaccepted for dependents
aged between 19 and 65 |
living expenses applied larger than
court-based debt solutions
(dependents include college students and housewives) |
| Debtors’ accessibility |
14 bankruptcy courts across the country |
50 regional offices,
mobile application or website |
Public record on
credit report |
individual Rehabilitation : 3~5 years
Bankruptcy : kept for 5 years |
- Individual workout by the CCRS : kept for 1 years
- Pre-workout,
Before-overdue debt management by the CCRS : none |
Whether credit
counseling exists |
No |
Yes, through our credit counseling we define
your debt problem and present a solution that
best suits your situation |
Influence on
credit score |
credit score remains low for 3~5 years |
-more advantageous in credit score than court-based debt solutions
-We have Credit and Welfare Consulting to improve credit score for our DMP clients |
Using credit cards
or loans |
restricted |
possible |
| Reduction and discharge of debt |
principal reduction rate higher than
Household debt relief programs by the CCRS
(average principal reduction rate :
about 70%) |
principal reduction rate lower than that of
court-based debt solutions
(average principal reduction rate :
about 44%)
(61% in case of charged-off debts) |
| Coverage of debts |
all unsecured debts (including loans from
individuals, tax, health care bills, rent, utility bills)
(* bankruptcy : tax, health care bills are not
discharged) |
unsecured debts owned by financial
institutions that have joined
'Agreement on debt relief support' |
| Repayment period |
bankruptcy : no payment
individual rehabilitation : usually 3~5 years |
up tp 10 years |
| Approval condition |
creditors’ agreement unnecessary |
the majority of creditors’ agreement necessary |
