Credit recovery

Credit recovery (신용회복/信用回復) refers to individual and/or institutional efforts to help debtors overcome the financial difficulties with various means from rescheduing to write-off.

In the aftermath of IMF Crisis, the government became to acknowledge an increasing numer of debtors suffering from credit problems could pose a social distress. So in the early 2000s, the credit couseling and recovery program occupied top priority of public agenda.

Key words
debtor, credit recovery, counseling, bankruptcy, the socially underprivileged

Mission
In October 2002, the Credit Counseling and Recovery Service (CCRS, 신용회복위원회) was established according to the "Credit Recovery Agreement" for the purpose of providing help for debtors in financial difficulties. CCRS was inaugurated as a non-profit corporation on November 1, 2003 under the approval of the Financial Service Commissions to objectively supply credit counseling, educating and debt-adjustment for debtors in financial distress.

By maximizing the availability of debt counseling services and financial education and debt repayment plans, CCRS is willing:
 * To prevent household bankruptcy;
 * To help delinquent debtors return to financial normalcy;
 * To promote financial stability for the working class; and
 * To become the cornerstone of achieving peoples' financial well-being.

Services
CCRS provides personal credit counseling for debtor's credit problems via phone (1600-5500), Internet (www.ccrs.or.kr), and face-to-face counseling. Credit counseling includes:
 * Free legal counseling by volunteer lawyers regarding civil and criminal legal issues including individual bankruptcy.
 * A Self-Credit-Diagnosis and Prescription System so that individuals can identify their own problems and come up with solutions.
 * Designated counseling to prevent and minimize damages from high-interest-rate private loans.

CCSR also supports debt-repayment of debtors suffering from excessive debt by:
 * Planning long-period installment (eight yrs. at maximum) plans;
 * Interest rate adjustment;
 * Write-offs;
 * Exemption of interest; and/or
 * Grace period.

Credit support programs for the socially underprivileged are provided by CCSR to the socially underprivileged recommended by government agencies and military servicemen with weak debt repayment capability who are otherwise ineligible for the program.

Individual Bankruptcy
The judiciary has eased the personal bankruptcy proceedings to help debt-stricken applicants to return to normal life under the newly amended Debtor Rehabilitation and Bankruptcy Act.