Professional Hong Kong Debt Restructuring Services

Your one-stop service provider for debt restructuring

Are you feeling weighed down by large debts that you find increasingly challenging to pay off? You are not alone. A lot of people in Hong Kong have heavy financial burdens. Being laden by an array of personal loans, balance transfer loans, student loans, tax loans, and commercial loans is very common.


Thousands of Hong Kong citizens take out massive loans every year to help tide them over rough financial situations. These loans are often borrowed from an assortment of banks and financial institutions. But at some point, these loans must be paid back in total – and with interest. That’s when problems arise. When your debts keep piling up, the debt repayment pressure can even exceed your repayment ability and affect your normal life.


That’s where our debt restructuring company can help you. We offer a full range of debt restructuring HK solutions that will help you overcome your loan-repaying woes.

Are you unable to repay your debts?

Are you considering filing for bankruptcy? Stop!

When it comes down to these types of desperate situations, most people may consider filing

for bankruptcy. However, this is not a simple matter and leaves a bad record on your credit profile. Plus, it will affect your personal reputation or professional standing.


We can provide several debt restructuring plans that can help individuals like you or companies like yours formulate flexible repayment plans and ease your piling debt issues.

Our Services - We offer several debt restructuring plans

We understand that one solution does not fit everyone’s requirements when it comes to debt restructuring in Hong Kong. That’s why we offer multiple debt restructuring solutions. So now you can choose a solution that works best for you.

1. Individual Voluntary Arrangement

IVA serves as one of the more common debt restructuring plans in Hong Kong. It is a debt restructuring method that can help you avoid filing for bankruptcy. You (the debtor) will not be restricted by any rules or leave any negative public records, and you will still be allowed to work normally. If you work in some of the more sensitive industries or professional fields, you can be sure that information about your debt restructuring in HK is not brought to the attention of your employers.


This method allows you to continue to be in control of your own bank account, although you are still responsible for paying off all the debt. In contrast, under bankruptcy, you can wait until your bankruptcy period comes to an end, and all debts will be written off. However, this debt restructuring arrangement will still affect your credit scores, but it is better than filing for bankruptcy based on all considerations.

2. Debt Relief Plan

DRP is another common method of debt restructuring in HK, which is said to be a simplified version of the previous voluntary arrangement. The debtor is free to make mutually agreed and feasible repayment plans with the creditors. The difference is that this must be arranged through a nominee or intermediary. But the advantage is that pursuing this type of debt restructuring method does require the need to go through any legal procedures. You can simply seek and handle directly by yourself and directly repay the creditor. Also, the debtor can enjoy daily expenses while the debt is serviced according to the agreement.

3. Interbank Debt Relief Plan

IDRP is relatively more convenient than the previously mentioned debt restructuring Hong Kong methods, specifically, you only have to discuss and formulate a feasible repayment plan with the largest creditor on hand. When the largest creditor agrees to the plan, and other creditors have no objections, the largest creditor will unify and consolidate all outstanding debts. The debtor merely needs to adhere to all the repayment terms listed in the agreement that are amortised to the largest creditor in the form of a fixed interest rate.

Benefits of Debt Restructuring Plans: 

Filing for bankruptcy is not ideal for both you (the debtor) and your lenders (creditors). On the other hand, debt restructuring in Hong Kong works in favour of both debtors and creditors.


1. Get a reduction in your loan interest

Debt restructuring plans consider your difficult situation and that you are unable to repay your loans – let alone the interest incurred! Debt restructuring in HK can usually reduce loan interest by a significant margin.


2. Get a more extended repayment plan

When you cannot repay your loans on time, debt restructuring plans will extend the debt schedule. That, while making sure that you can efficiently settle the repayments of your debts within a limited period of time.


3. Increase the chance of repaying your loans

Unable to pay off your debts? It might seem a good idea to file for bankruptcy now. But did you know that your credit score is severely affected when you don’t repay your debts? Debt restructuring in Hong Kong undoubtedly increases the debtor’s chances of repaying debts and avoiding the need of writing off bad debts by creditors. But they also serve as a way to ensure that your credit score is not adversely affected.


4. Creditors have a better chance of getting a part of their loans returned

Filing for bankruptcy is a creditor’s nightmare. Of course, creditors will know that if the debtor is forced to file for bankruptcy, they may get nothing in return. But with a debt restructuring plan, creditors have a chance of getting back at least a part of the loan they gave out. Therefore, debt restructuring HK services provide a win-win situation for all parties involved. Not only does the debtor avoid the need to file for bankruptcy, but the creditor can also collect on their outstanding debts.

About Debt Restructuring in Hong Kong – FAQs:

About Debt Restructuring in Hong Kong - FAQs:

  • 1. Why is filing for bankruptcy not a good idea in Hong Kong?

    Bankruptcy is not considered good or bad; it is a way for honest people and companies to

    protect themselves when they find they cannot repay their debts. When you file for bankruptcy, instead of seeking debt restructuring services, you do so via a legal process. While you become free of your debts, there are other consequences to consider:


    • The court will declare that you are incapable of repaying your debts. The Official Receiver then becomes the provisional trustee of all your assets and can decide how your property and other assets are distributed among your creditors.   
    • You will be deemed bankrupt for four years (five years if you have been bankrupt before).
    • You cannot make significant investments like buying a car or a house.
    • You cannot apply for other loans.
    • You might lose your provident fund to creditors to whom you owe money.
    • Your bankruptcy status is noted on your public records.
    • You won’t be able to serve as a company director or operate any business while bankrupt.
  • 2. What happens during debt restructuring in HK?

    Typically, debt restructuring involves getting lenders to make loan repayment easier by reducing a loan’s interest rate or extending the due date.

  • 3. Which is the best debt restructuring plan for me?

    All debt restructuring plans have something unique to offer, depending on what benefits you would like to avail yourself. IVA is fantastic for those willing to go through the legal system, while the DRP does not require you to go through the legal system. The IDRP is excellent for those who want to pursue a more direct debt restructuring solution that involves negotiations with the biggest creditor.

  • 4. What is the difference between IVA and DRP?

    Although very similar, there are critical differences between the two debt restructuring Hong Kong methods. While both are forms of debt restructuring, the former is legally binding, while the latter is not legally binding.


    Also, DRP is usually much more straightforward than the IVA, plus it gives you the debtor a lot of control when you apply for this type of debt restructuring in HK.


    Money that is spent on hiring a lawyer for IVA can be saved with DRP. Plus, the latter method does away with courts, lawyers, court meetings, and creditor meetings.


    If you work in a sensitive industry like finance or the disciplinary forces, you can be sure that your employees won’t be notified of your inability to repay your loans. Your job will be safe. However, IVA does not guarantee your employees will not be notified of your debt restructuring in Hong Kong.

  • 5. When should my company consider a debt restructuring plan?

    Even a strong business can face short-term working capital challenges during an economic downturn. Debt restructuring plans must be considered when all else fails and prospects of corporate bankruptcy loom over the company.

  • 6. How is debt restructuring better than filing for bankruptcy?

    Both debt restructuring and bankruptcy help you tide over your debt repayment problems. Debt restructuring in HK provides a less expensive alternative to bankruptcy when you are in financial turmoil. Unlike bankruptcy, which affects both the borrower and the lender, a debt restructuring in Hong Kong can benefit both the borrowing and the lender. 

  • 溫馨提示


    Chris Lui理財顧問