▲ Seoul Bankruptcy Court
Vulnerable debtors who meet certain conditions, such as receiving less than the minimum wage over the past two years, will be able to shorten their personal rehabilitation repayment period to under three years upon entering the rehabilitation process.
The Seoul Bankruptcy Court announced on October 1 that it has revised its practical guidelines to include vulnerable debtors among those eligible for a shortened personal rehabilitation repayment period.
Under the revision, debtors who have received wages below the minimum wage for the past two years can shorten their repayment period to under three years, provided they meet all of the following conditions: their total debt is 50 million won or less, they have no individual creditors, and they have incurred no new debt over the past year.
According to the Debtor Rehabilitation and Bankruptcy Act, the personal rehabilitation repayment period must not exceed three years.
Under existing practical guidelines, the bankruptcy court has allowed the repayment period to be set at under three years for certain groups, including & ▲ seniors aged 65 and older, & ▲ persons with disabilities, & ▲ young adults under 30, & ▲ multi-child households, & ▲ single-parent families, and & ▲ victims of jeonse (lump-sum housing deposit) fraud.
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