What is Consolidated Debt Relief?
After review and negotiation with the largest creditor, a new repayment plan will be established by consolidating all the remaining debtors’ debts into one account.
Those people 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: More convenient than DRP, lumped into one account, making repayment easier and more convenient. You can save up to 70% of interest expenses. Maximum tenor period of 10 years. It is especially suitable for sensitive industries such as banking, insurance, and disciplinary forces. Lowest impact on your credit history compared to IVA.
Disadvantage: It will be more difficult than DRP. Depending on the creditor’s request, all debt accounts including revolving accounts or credit cards will be frozen or closed. There is only one largest creditor, if the application fails, it means that it will fail together with other debts (please discuss with us/professionals to understand the situation).
Requirement: The largest debtor will normally account for 80% of the total debt, subject to the consent of the largest creditor. Hold a Hong Kong Identity Card. Imbalance between income and debt contribution, e.g. debt is usually more than 15 times of income. A debt agency that only accepts members of the Global Alliance. A working person with income proof. Have a repayment capacity of 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 your client. It depends on the situation, and you should not wait until the case is closed before seeking help.
Time: 3-6 weeks, usually 4 weeks, depending on the organization’s review and pace of discussion.
Cost: Minimum 10,000 – maximum 25,000 depending on the level of difficulty.
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