The debt counseling application process can take up to 60 working days to complete. Although this is a long process, the consumer will be protected against legal action from creditors within 5 working days during the application process.

The debt counselor will negotiate with the creditors on the consumer’s behalf during both the application phase and until all debt have been met.

When applying for debt review the consumer completes and signs a debt counseling application form. This form is accompanied by supporting documents such as latest payslip, accounts with full outstanding amounts from creditors and the complete contact details of these creditors. Within 5 working days of submitting a complete debt counseling application form, all creditors are notified by the 債務舒緩 債務重組 分別 debt counselor that you as the consumer have applied for the debt review process.

The debt counseling application is now in progress and no legal action can be taken by your creditors. Creditors will have to confirm that these outstanding amounts as given by the consumer are correct. If no conformation is given by them the debt counselor may assume that the amounts given by the consumer are correct. The debt counselor will now use all these outstanding amounts and your monthly income to calculate if you are indeed over-indebted.

A debt restructuring proposal will be sent to the creditors by the debt counselor, based on the amount you have available each month for paying your debt. The general idea is to lower your monthly repayments, thereby allowing you to also save money for an emergency fund. The proposal is generally sent to the creditors after 25 days from the date of application. Creditors have about 15 days to respond and accept the proposal. If accepted the proposal is finalized and sent to the Payment Distribution Agency (PDA) for receiving and distributing your monthly payments to credit providers.