Difference between IVA, DRP and IDRP?

Difference between IVA, DRP and IDRP?

IVA: Consolidate all debt using the courts to setup a debt reorganization plan. Generally suitable for debtors with a large number of loans, and/or a high-debt ratio. DRP: Consolidate debt by negotiating a new repayment plan with individual creditors without court process. The cost is relatively low, but not every creditor accepts debt relief applications. IDRP: a debt restructuring plan that negotiates new repayment methods with the largest creditor. As long as the largest creditor is willing to accept the debtor’s repayment plan, and with no objections from other creditors, the largest creditor will unify all the debts owed to the debtor.

3. Can I apply for IVA if I have a property?

Generally, banks only require debtors to sell positive equity assets to reduce the debt. At present, the properties of most people with negative equity and landlords who need to pay land premiums will not be affected.

4. Can self-employed persons apply for IVA?

Employed persons can of course apply for debt restructuring. Even if they are self-employed, as long as they can provide reasonable income certificates, they also meet the basic requirements for debt restructuring.

5. Will the person applying for IVA notify their employer?

In most occupations, employers do not need to be notified, but there are also certain jobs that are required. For example, bankers need to notify the Monetary Authority and their supervisors, and police officers also need to take the initiative to report to their superiors.

6. How long does it take to apply for an IVA?

Generally speaking, it takes about four to five months from signing the documents, swearing an oath, and setting up the court meeting until the creditors meeting. The whole process will be followed up by experienced accountants and lawyers, so clients don’t need to worry.

7. Does the debtor need to continue to repay the debts owed by the creditor during IVA application?

In fact, when most creditors receive the notice of debt restructuring applications, they will understand the difficulties of the debtors and are willing to suspend the collection of payments. Only after the creditors’ meeting has been completed and a new repayment plan has been discussed, will the debt repayment be resumed.

8. According to the Hong Kong Official Receiver’s Office mechanism, how to formally pass the IVA application?

According to the regulations, the debt restructuring proposal proposed by the debtor can be formally approved as long as the creditor agrees to 75% or more of the total debt.

9. Can I borrow money during the IVA contribution period?

Debtors should avoid making new loans during the IVA repayment period. Ordinary banks or financial institutions will not accept their loan applications.

10. What should I do if I encounter unemployment or a salary reduction during the IVA contribution period?

There is no need to worry about unemployment or salary reduction during the repayment period because IVA repayment is more flexible. However, if the debtor wants to repayment or suspend repayment, the debtor must present a strong evidence and obtain the consent of the creditor.

11. Can the application fee for IVA be paid in installments?

Yes, we provide instalment payment plans, which generally can effectively reduce the financial pressure on applicants.