Personal Debt Restructuring Plan
Ruthy Chan – Free Debt Consultation
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Ruthy Chan offers professional initial advice on debt restructuring, providing personalised plans tailored to your needs, helping you regain financial freedom.
Valid until canceled
1
Ruthy Chan – Debt Relief Plan (DRP)
10,000
We offer expert debt relief solutions by negotiating with creditors for better repayment plans and managing the entire process to ensure smooth execution and reduction in debt.
Valid until canceled
2
Best Value
Ruthy Chan - IVA
30,000
We provide expert support for Individual Voluntary Arrangements, including asset evaluation, proposal drafting, and creditor meeting arrangements to manage debt effectively.
Valid until canceled
3
After payment, please contact us via WhatsApp at 5508 9548 for further service arrangements.
Ruthy Chan Debt Relief Programme (“DRP”)
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Initial Assessment & Document Collection
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Acting as a representative for the debtor, handling all matters throughout the DRP process
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Drafting authorisation letters, debt relief proposals, new repayment plans, and terms
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Completing relevant documents/forms as required by different creditors, collecting and submitting the debtor’s personal documents to creditors
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Full follow-up on creditor responses and maintaining communication until a new repayment plan is agreed upon
DRP Fee:
HK$9,000 – HK$10,000 (one-time fee)
Ruthy Chan Individual Voluntary Arrangement (“IVA”)
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Initial Assessment & Document Collection
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Acting as a nominee for the debtor, handling all matters throughout the IVA process
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Drafting authorisation letters, statement of assets and liabilities, income and expenditure report, and repayment proposal report
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Providing a legal team for legal advice and arrangement of oath-taking
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Preparing and submitting court documents
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Assisting with publishing the creditor meeting notice in English and Chinese newspapers
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Convening and chairing the creditors’ meeting
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Preparing and submitting the creditors’ meeting report to the court
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Registering the IVA case with the Official Receiver’s Office
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Upon approval, managing the debtor’s assets until all debts are settled
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Maintaining communication with both creditors and the debtor
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Providing asset management services and facilitating repayments to creditors
IVA Fee Overview:
HK$30,000 – HK$40,000 (one-time IVA service fee)
HK$500 (monthly asset management fee)
FAQ | Debt Restructuring
Q
What is debt restructuring?
A
Debt restructuring refers to the process where a company or individual facing financial difficulties or cash flow issues renegotiates with creditors to reduce outstanding debt. This may involve lowering loan interest rates or restructuring repayment terms to improve financial liquidity, allowing businesses to continue operations or individuals to regain financial stability.
Q
What are the advantages and risks of debt restructuring?
A
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Interest rates after restructuring are generally lower than before, with repayment periods extending up to 6–8 years.
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Debtors can retain all their bank accounts, including current accounts.
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More financial freedom compared to bankruptcy, as debtors are not subject to the Bankruptcy Ordinance and can continue working in professions such as directors, lawyers, accountants, insurance agents, and real estate agents.
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Debtors can keep all assets, including existing properties and vehicles, continue paying insurance premiums, make investments, and run their businesses without restrictions.
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Typically, debtors need to allocate half of their monthly salary for repayment.
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Credit ratings will be affected but remain better than those of bankrupt individuals.
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If opting for a Debt Relief Plan (DRP), the debtor will not have a record in the Official Receiver’s Office.
Q
What debt restructuring options are available?
A
Debt Relief Plan (“DRP”) and Individual Voluntary Arrangement (“IVA”).
Q
Who is eligible for debt restructuring?
A
Suitable for borrowers with stable employment but facing short-term cash flow difficulties.
Q
What are the minimum requirements for application?
A
The borrower must:
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Have a stable job (must be a full-time, long-term employee and have passed the probation period at the time of application).
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Have a regular repayment history without interruptions.
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Have been making repayments for at least six months without taking on new debts.
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Maintain a reasonable credit rating (e.g., a minimum grade of “G” in a TransUnion credit report).
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Be able to allocate half of their salary for repayment.
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Have creditors limited to banks and major financial institutions.
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Have total debt exceeding ten times their monthly salary (applies to IVA).
Q
What is a Debt Relief Plan (DRP)?
A
The key difference between DRP and IVA is that DRP does not require court approval. Thus, debtors do not need to hire a lawyer, and the process is more flexible. Debtors can propose their own repayment plans or appoint a professional, usually a certified accountant, to draft a debt relief proposal and manage all administrative tasks as required by creditors (banks or financial institutions). The process typically takes 1–2 months, with costs generally not exceeding HKD 10,000.
Note: Creditors individually decide whether to approve a DRP, and it is not guaranteed that all creditors will accept the proposal. Even if successful, the final repayment terms in creditors’ agreements may slightly differ from the original proposal.
Q
What is an Individual Voluntary Arrangement (IVA)?
A
An Individual Voluntary Arrangement (IVA) is a formal procedure under the Bankruptcy Ordinance. Applicants, including bankrupt individuals, can apply to the court for an interim order, preventing creditors from initiating bankruptcy petitions or taking other legal actions during the period. The debtor must propose a repayment plan, which, once approved, is legally binding for all creditors.
Debtors must appoint a nominee, typically a certified accountant, to assess financial status, prepare a statement of assets and liabilities, draft the repayment proposal, and submit reports. Lawyers may also be hired to handle court proceedings, including hearings and obtaining the interim order. The nominee will convene and chair a creditors’ meeting to negotiate and finalise the repayment plan. If creditors holding at least 75% of the total debt value approve the plan, the IVA is legally binding.
The court will then issue an order requiring the debtor to comply with the repayment terms under supervision. Failure to comply will result in the annulment of the order.
The IVA process typically takes 3–4 months, with costs ranging from HKD 30,000–50,000 (including nominee fees, legal fees, court fees, publication fees, and other actual expenses).
Q
What are the legal consequences of violating an IVA?
A
If a debtor provides false statements or commits fraudulent acts to gain creditor approval for an IVA proposal, they may face legal consequences, including a Level 2 fine and up to six months’ imprisonment.
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