Organization
in charge |
bankruptcy court |
CCRS(Credit Counseling & Recovery Service) |
| Implementation |
Jan. 1962 |
Sept. 2004 |
Oct. 2002 |
Apr. 2009 |
Sept. 2019 |
Eligible
debtor |
insolvent debtor
(who has no disposable
income and property) |
insolvent debtor
who has disposable
monthly income |
90 days
overdue |
31~89 days
overdue |
less than 31
days overdue |
Coverage of
debts |
all unsecured
debts
※ tax, health
care bills not
included |
all unsecured
debts
※ tax, health
care bills and
loans from
individuals included |
unsecured debts owned by financial institutions that
have joined 'Agreement on debt relief support'
※tax, health care bills, loans from individuals,
non-financial loan out of government control not
included |
| Debt limit |
no limit |
unsecured debt
: \1 billion
secured debt
: \1.5 billion |
unsecured debt
: \0.5 billion
secured debt
: \1 billion
(businessman \3 billion) |
unsecured debt
: \0.5 billion
secured debt
: \1 billion |
unsecured debt
: \0.5 billion
secured debt
: \1 billion |
Repayment
period |
- |
3~5 years |
up to 10 years
* secured debt :
up to 35 years |
up to 10 years
* secured debt :
up to 35 years |
up to 10 years |
| Reduction and discharge of debt |
discharge after
liquidation
(100% written off) |
pay at least the
amount of non
exempt property
(by liquidation value)
(70% of principal
reduced on average |
interest : fully
exempted principal :
charged-off
debts reduced
up to 70%,
90% for the
social vulnerable
(44% of principal
reduced on average,
61% in case of
charged-off debts) |
overdue interest
fully exempted,
Interest rate cut
by 30~70%,
principal unchanged |
overdue interest
fully exempted,
interest rate cut
to maximum 15%,
in case of
credit card, 10% |
| Coverage of secured debt |
unavailable
(mustberepaidbyoriginalcontract) |
available |
available |
unavailable |
| Co-debtor protection |
co-debtor remains liable to
unpaid debt |
co-debtor is protected if repayment plan is ongoing |
| Legal effec |
order of court(final judgement) |
contract beetween debtor and lenders(private agreement) |
Public record
oncreditreport |
kept for 5 years
after discharge |
kept for 3~5 years
after court
approval of
repayment plan |
kept for 1 years
after final
agreement on debt
management plan |
none |
none |
