SEOUL, Oct. 28 (Korea Bizwire) — South Korea will introduce a fast-track liability exemption program for the economically-vulnerable class, enabling the bankruptcy procedure to be completed instantly as soon as the court approves the discharge.
The Seoul Bankruptcy Court, together with the state-run Credit Counseling and Recovery Service, announced on Thursday that it will implement a fast liability exemption program for fragile debtors starting next month.
For personal bankruptcy cases in general, a bankruptcy trustee is appointed and the property of the debtor is investigated and managed based on the opinions of creditors.
Thereafter, the court makes a decision on whether or not to exempt the liability of the debtor by looking over the feasibility of writing off debts.
Under the new program, however, the Credit Counseling and Recovery Service investigates and reports the debtor’s financial statement, income and properties to the court.
After hearing opinions from creditors, the court makes a decision on whether to release the debtor from their liabilities.
“The new system will contribute to reducing the period from filing to discharge from four to five months to less than two months, as well as reducing the cost of appointing bankruptcy trustees,” the court said.
J. S. Shin (email@example.com)