What is debt relief?
Through individual debtors’ assessment and negotiation, a new repayment plan will be drawn up for the remaining debt, with the aim of reducing the debtor’s burden by a suitable repayment plan.
Who need this plan?
The scheme is for all those whose normal standard of living has been affected by paying debts. If you are spending most of your income on repaying your debts, then this plan can help you.
Benefit: Lower cost. Save up to 70% on interest expense. Term can be spread over a maximum of 10 years. It is especially suitable for sensitive industries such as banking, insurance, and disciplined services. Lowest impact on your credit history compared to IVA.
Disadvantage: It is difficult to apply for bank loan during the repayment period after the new repayment plan starts. The credit card of the institution designated for the restructuring project cannot be retained.
Eligibility: possession of a Hong Kong Identity Card. Imbalance between income and debt contributions, e.g. debt is usually more than 15 times your income. Debt agencies that only accept GFSA members. Employed persons with proof of income. Ability to repay at least 40% of your income.
Note: Do not try again and again. Generally speaking, you can try again and again, so it is important to choose the client. Depending on the situation, you may not want to wait until the next confession before seeking help.
Time: 3-6 weeks, usually 4 weeks, depending on the organization’s review and pace of discussion.
Cost: minimum 3,000 – maximum 25,000 depending on the size of the project, the debtor organization and the level of difficulty.
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