Many people get so deeply into debt that they become over-indebted at some point of time idrp 綜合債務舒緩計劃. A person is said to be over-indebted when they are no longer in a financial position to pay back their debt with the amount of money they are left with after all their monthly expenses are met. This is a very dangerous situation to be in as creditors can take them to court when they are not able to pay back their dues.
Fortunately, people who are over-indebted can opt for a debt review process. A person would qualify for a debt review only if they are over-indebted. They should also be earning an income that is sufficient enough to cover their monthly expenses and have some amount left over to pay creditors.
Once a person qualifies for a debt review, they would be assigned a debt counselor who will immediately notify all their creditors that a debt review is in progress. The debt counselor will then draft a proposal for restructuring the debt and send it to the creditors for their approval. The entire process which involves the initial application and the subsequent negotiations with creditors can take up to 60 days. During this period, the debtor is adequately covered against any legal action that creditors might take against them.
The goal of restructuring the debt is to reduce the amount the debtor needs to pay every month in the form of installments. The debt counselor takes into account the income and expenses of the debtor and comes up with a figure that they can comfortably pay every month. With a lower monthly installment which is more affordable, the debtor would be able to make the payments without fail. Therefore, creditors would also be happy with this arrangement as their money would eventually be repaid back to them with interest.