개인파산 신청방법Field of work
Personal bankruptcy procedures are limited to individual debtors.
The Debtor Rehabilitation and Bankruptcy Act stipulates bankruptcy procedures separately for corporations and individuals.
Therefore, when an individual applies for bankruptcy, the procedure is carried out according to the personal bankruptcy procedure.
Personal bankruptcy procedures largely proceed in the following order: bankruptcy application, bankruptcy declaration, and exemption decision. It is characterized by fewer and simpler documents and contents compared to corporate bankruptcy procedures.
In the case of personal bankruptcy, exemption from exemption is determined based on the contents of the report of the personal bankruptcy trustee appointed after the bankruptcy is declared, so this is a system that requires an appropriate response.
If you are sentenced to exemption from liability, rights or authority suspended or revoked due to personal bankruptcy will be naturally reinstated, so those who are suffering from excessive debt need to consider using this system.
The personal rehabilitation procedure is one of the rehabilitation procedures in which the applicant is an individual. Personal rehabilitation procedures can be used in a simpler way than general rehabilitation procedures.
However, there is a limitation in that personal rehabilitation can only be used by individuals who owe less than 500 million won in unsecured debt and 1 billion won in secured debt.
Therefore, if the applicant is a corporation or an individual with debt exceeding 1 billion won, the general rehabilitation procedure must be used.
In the case of personal rehabilitation, a repayment period of three years is usually given, and during that period, a fixed income excluding the minimum living expenses (the minimum living expenses determination varies depending on dependents and health status, etc.) must be paid to the rehabilitation foundation. And once the above period has elapsed, the entire debt can be discharged. When using the rehabilitation system, unlike bankruptcy procedures, there are no restrictions on authority under public or private law, so it is a system worth using if you are an individual who can prove a fixed income.
