DEBT RELIEF PLANNING

DEBT RELIEF PLANNING

Debt Relief Planning is also called DRP, which is one of the approved debt restructuring methods in Hong Kong as well as the Individual Voluntary Arrangement (IVA). The application procedure for DRP is roughly the same as IVA, however, DRP does not require legal approval, which is the only difference of DRP application procedure comparing to IVA. Therefore, DRP is also widely recognized as the simplified version of IVA. If you deal with your debt through DRP HK, as long as you directly negotiate the debt repayment plan with the creditors and obtain their agreement, you can complete the repayment within a year at a fixed interest rate according to the new repayment plan. It helps you get rid of your debts.

The benefits of applying for DRP (Debt Relief Planning):

Avoid bankruptcy

Those who apply for DRP can avoid being bankruptcy and do not need to go through the legal procedures. 

Reduce Interest Rate

Minimise most of the interest expenses and the monthly payment 

Can keep some of your credit cards

DRP helps to negotiate the repayment agreements with individual creditors and can restructure part of the debt amount.

Do not affect your current job

There is no need to notify the employer, which is suitable for everyone including people involve in any sensitive industries.

Why should you choose debt relief planning (DRP) to restructure your debt?

Let’s learn more about the advantages of debt relief planning as below:

As mentioned above, legal procedures are not required for apply DRP, and this helps to reduce a lot of manpower, resources and time.

  1. No nominee is needed for preparing a debtor’s repayment report
  2. No lawyers and accountants is needed for court hearings
  3. There is no need to issue an interim order from court
  4. No creditors meetings in court is needed
  5. No nominee is needed to prepare subsequent repayment arrangements

According to the above information, you can clearly understand how DRP can simplify the application procedures. DRP can also help debtors save a lot of the approval waiting time, and therefore deal with the debt problems in a quicker way. Most importantly, DRP helps to reduce huge and unnecessary administrative fees as well as court fees, to prevent debtor’s financial situation from worsening.

In terms of the risk and success rate, the repayment plan in DRP is drawn up and submitted one by one for individual creditors, therefore, the plan is more specific and targeted. DRP is different from individual voluntary arrangements (IVA) that need to be approved in court and voted to pass. DRP only needs to be directly negotiated and approved, which is relatively low risk with a higher success rate. In addition, DRP is better from the career perspective. For debtors who engage in professional and sensitive industries (such as banking, insurance, finance and Government Disciplined Services etc.), there is no need to notify the employers or supervisors to apply for DRP,  and there is no need to worry about damaging reputation, affecting current jobs or promotion opportunities etc. On the contrary, if you apply for IVA, you need to notify your employers or supervisors.

DRP application qualification

  • Suitable for all people in any societies or industries. (For example: professionals in banking, insurance, finance and Government Disciplined Services)
  • Also applicable to people with total debt amount less than $100,000. (But it must be ten times higher than the monthly salary)
  • With one or more existing creditors.

Comparison of debt relief planning (DRP) and individual voluntary arrangements (IVA):

Debt relief planning (DRP)

  1. Can apply with one or more creditors
  2. DRP application takes less processing time
  3. DRP fees are lower
  4. The debtor does not need to participate in any legal process
  5. You can choose to restructure part of the debt
  6. Allow to keep some credit card accounts
  7. Relatively small debt amount
  8. Separate repayment to individual creditors
  9. Accepted by most banks
  10.  

Individual voluntary arrangement (IVA)

  1. Can only apply with at least three creditors or more
  2. The application processing time is longer
  3. Application cost is higher
  4. Need to go through relevant legal procedures
  5. All debts need to be restructured and approved by creditors
  6. Cancellation of all credit cards is required
  7. Large debts can be restructured
  8. The debt repayment amount is given to the nominee, and the nominee is passed on to the creditor
  9. Accepted by most finance companies except for banks
  10.  

DRP application procedures:

  1. The applicant submits all debts and information and records of debt repayment to our DRP company
  2. Our professional review team will conduct a review based on the submitted documents and evaluate whether the debtor’s debt is suitable for DRP application
  3. After confirming the eligibility for the application, HKDRS will tailor a suitable debt repayment proposal according to the debtor’s debt repayment ability and financial situation, which will detail the specific repayment details, such as tenure, interest, and repayment amount etc.
  4. After the debtor’s authorization, our company will submit relevant proposals to individual creditors one by one on behalf of the debtor, and discuss a plan that can meet the interests of both parties. The negotiation process will take about one and a half months based on our experience.
  5. After the creditor and debtor agree on the new repayment plan and terms, the relevant proposal will be signed and the repayment will be made in accordance with the relevant plan.

By implementing the new repayment proposal, as long as the debtor repays the debt with a fixed interest and repayment amount within a fixed period,  will soon be able to get out of the debt dilemma and start a new life. Our company provides you with professional applications to handle DRP application, which can save you a lot of unnecessary repayment interest and enable you to solve debt problems better and faster. Our fees for DRP application is transparent, fair and reasonable. If you are looking for DRP services in Hong Kong, please feel free to contact us at any time to learn more about the application service charges and related detailed information.

*** We provide free professional analysis and consultation for IVA fee. And your personal information provided will be kept confidential ***
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