Part 1 Personal Bankruptcy

Chapter 1 General Provisions 23

Section 1 Bankruptcy General Provisions 23
1.
The Concept of Bankruptcy 23
2.
The History of Korea's Bankruptcy System 24
3.
Article 25 of the Debtor Rehabilitation and Bankruptcy Act

Section 2 Personal Bankruptcy 26
1.
The Concept of Personal Bankruptcy 26
2.
The Significance of Personal Bankruptcy 26
3.
Flowchart of Personal Bankruptcy and Discharge Procedures 28
4.
Comparison with Personal Rehabilitation Procedures 29
5.
Comparison with Private Debt Adjustment Systems 29
go.
Composition of the Credit Recovery Committee 30
me.
30 Benefits of Workouts
all.
31 Disadvantages of Workouts

Chapter 2: Progress of Personal Bankruptcy Procedures 35

Section 1 Application for Personal Bankruptcy 35
1.
Applicant 35
2.
Bankruptcy Claims and Bankruptcy Capacity 36
go.
Bankruptcy Claim 36
me.
Bankruptcy capacity 37
3.
Application fee 37
go.
Injidae 37
me.
Delivery fee 37
all.
Bankruptcy trustee fees 37
la.
Table 39: Recognition Fees and Delivery Fees for Rehabilitation and Bankruptcy Applications
4.
Jurisdiction Court 43
go.
Land jurisdiction 43
me.
Jurisdiction over things 44
all.
Standard time 44 in your jurisdiction
la.
Exclusive jurisdiction 44
5.
Application Document 45
go.
Application 45
me.
Statement 45
all.
List of creditors and their addresses 46
la.
Property List 46
mind.
Current Living Situation 46
bar.
List of Income and Expenses 46
buy.
Submission List 46

Section 2 Causes of Bankruptcy 47
1.
Cause of bankruptcy 47
go.
Meaning 47
me.
The Concept of Insolvency 47
2.
Requirements for Insolvency 48
go.
Insolvency requires a lack of money to repay debts, either directly or indirectly.
48
me.
Insolvency requires that the means of payment be continuously defective.
48
all.
Insolvency must be objective.
48
la.
Insolvency requires the inability to repay monetary debts when they become due.
48
mind.
Recognition of Insolvency 48

Section 3 Court Review of Bankruptcy Applications 51
1.
Examination of Bankruptcy Petitions 51
2.
Debtor Interrogation 51
go.
Debtor Direct Interrogation 51
me.
Debtor Appearance Notice and Interrogation 52
all.
Handling Cases Where the Debtor Absents 54
la.
55 Post-Interrogation Review Items

Section 4 Bankruptcy Claims and Bankruptcy Estate Claims 57
1.
Bankruptcy Claim 57
go.
The Meaning of Bankruptcy Claims 57
me.
Scope of Bankruptcy Claims 57
all.
Exercise of bankruptcy claims 57
2.
58 claims of the bankruptcy estate
go.
The Significance of Bankruptcy Estate Claims 58
me.
Scope of Bankruptcy Estate Claims 58
all.
Payment of Foundation Bonds 59

Section 5 Bankruptcy Estate 60
1.
Bankruptcy Estate 60
2.
60 Property Not Part of the Bankruptcy Estate
go.
Shindeukjaesan 60
me.
Non-seizureable property (Article 383, Paragraph 1 of the Act) 61
3.
Exempt property (Article 383, Paragraph 2 of the Act) 64
go.
The significance of exempted property 64
me.
Contents of Exempt Property - Expansion of Property Excluded from Bankruptcy Estate 64
all.
Application for exemption of property 66
la.
Exempt Property and Enforcement 66

Section 6. Right to Deny and Acts Subject to Denial 68
1.
What is the right of women? 68
2.
Exercise of Women's Rights 68
go.
Methods and characteristics of exercising women's rights 68
me.
Beneficiary's Burden of Proof 69
all.
Period of exercising the right to vote 69
la.
Discontinuation of litigation 69
mind.
69 Exercisers of Women's Rights
bar.
Methods of Exercising Wife's Rights 69
buy.
Case 70 of exercising women's rights
3.
Creditor's Right of Cancellation 72
go.
Meaning 72
me.
Event Requirements 72
all.
Event period 73

Section 7 Court Judgment on Bankruptcy Applications 82
1.
Dismissal Decision 82
go.
The significance of the dismissal grounds provision 82
me.
Reasons for Dismissal (Article 309 of the Act) 82
2.
Bankruptcy Declaration and Closure Decision 88
3.
Effective Date of Bankruptcy Declaration 89
go.
Legal Restrictions on Status 89
me.
Effect on the Debtor's Property and Litigation 91
4.
Court Processing After Bankruptcy Declaration 91
go.
Announcement 91
me.
Service to Creditors 92
all.
Notice of Inspection 92
la.
Appeal of the Bankruptcy Petition 92
mind.
Processing after bankruptcy declaration is finalized 93

Chapter 3: Exemption and Reinstatement 95

Section 1: The Significance of the Immunity System 95
1.
The significance of the immunity system 95
2.
Exemption Applicant 96
3.
Jurisdiction Court 96
4.
When and How to Apply for Exemption 96
go.
Timing of Application for Exemption 96
me.
How to Apply for Exemption 97

Section 2 Court Review of Applications for Exemption 99
1.
Interrogation of the Bankrupt 99
go.
Decision on the date of the bankruptcy hearing 99
me.
Notice of bankrupt's summons and hearing date for creditors, Public Notice 99
2.
100 Opportunity for Creditors to File Objections
3.
Decision and Pronouncement of the Objection Period 100
4.
Changing, Postponing, and Continuing Debtor Hearing Dates 101
5.
Handling Cases Where the Debtor (Bankrupt) Absent 101
go.
101. If the debtor (bankrupt) fails to appear after receiving a summons
me.
101. In case the debtor does not appear due to failure of delivery
all.
102 In case only the debtor's application agent appears
la.
102 In case of death of the debtor
mind.
Interrogation Method and Time 103

Section 3 Court Decision on Application for Exemption 104
1.
Reasons for Denial of Exemption 104
go.
Article 564, Paragraph 1, Reasons for Denial of Exemption from Liability 104
me.
Discretionary Disclaimer 105
2.
Decision on granting immunity 105
go.
Decision to Dismiss Application for Exemption 105
me.
Decision on granting or denying immunity 106
all.
Delivery and Public Notice of Exemption Decision 106
la.
Procedure after finalization of exemption decision 107
3.
Effect of Exemption Decision 107
go.
Disclaimer of Liability 108
me.
Non-dischargeable bond 108
all.
Effect on Debtor 108
la.
Effect on Creditors 109
mind.
Effect on the debtor's guarantor, etc. 109
4.
Cancellation of immunity 110
go.
Fraudulent Bankruptcy (Article 569, Paragraph 1 of the Act) 110
me.
When exemption is obtained through unfair means (Article 569, Paragraph 1) 111
all.
Procedure 111
la.
Effect 111
5.
Lottery 112
go.
The purpose of the system 112
me.
Lottery 112
all.
Lottery 112 by application

Chapter 4: Preparing Personal Bankruptcy/Discharge Applications 115

Section 1: Preparing to File a Personal Bankruptcy Application 115
1.
Basic Documents 115
2.
Document 115 related to the list of creditors
3.
Documents related to the property inventory 115
4.
Documents related to your current living situation (documents proving your and your family's income)
117
5.
Documents related to the statement 117
6.
Documents on Income and Expenses 117
7.
Bankruptcy Trustee Request Document 118

Section 2 Preparation and Filing of Personal Bankruptcy Applications 119
1.
Bankruptcy Application and Attachments 119
go.
Types of documents to be prepared 119
me.
Composition of simultaneous application documents 120
all.
Writing Guidelines 120
2.
123 processing fee to be paid together with application
go.
Cognition 124
me.
Delivery fee 124
3.
Procedural fees to be paid after filing - Bankruptcy administrator appointment fee 125
4.
Court Actions for Non-Payment of Procedural Fees 125
5.
Record compilation order 126
6.
Submission of copies 126

Section 3: How to Write Applications and Attached Documents 127

Section 4: Case Study of Personal Bankruptcy Applications 159

Part 2: Personal Rehabilitation

Chapter 1: General Provisions on Personal Rehabilitation 233

Section 1 General Provisions 233
1.
Overview of Personal Rehabilitation 233
2.
Flowchart of the Personal Rehabilitation Procedure 235
go.
Flow of the Personal Rehabilitation Process 236
me.
Monthly Leibniz Table of Values ​​237
What is the Leibniz coefficient? 237
all.
Limit on exempted assets 239
3.
Personal Rehabilitation Terms 241
4.
Application Fee and Jurisdiction Court 242
go.
Application fee 242
me.
Jurisdiction 242
【Table】Courts with Jurisdiction over Personal Rehabilitation and Bankruptcy 244
【Table】 Address and contact information of the court with jurisdiction over personal rehabilitation and bankruptcy 245

Section 2 Comparison with Other Procedures 246
1.
Comparison with Personal Bankruptcy 246
go.
Advantages of Personal Bankruptcy 246
me.
Disadvantages of Personal Bankruptcy 246
all.
247 Advantages of Personal Rehabilitation Over Personal Bankruptcy
la.
249 Disadvantages of Personal Rehabilitation Compared to Personal Bankruptcy
mind.
Whether a person who has filed for bankruptcy can file for personal rehabilitation 249
2.
Comparison with personal workouts 250
go.
250 Benefits of Personal Workouts
me.
250 Disadvantages of Personal Workouts
all.
252 Advantages of Personal Rehabilitation Over Personal Workout
【Table】 Comparison with Similar Procedures 255
la.
Whether a person who has been confirmed as eligible for credit rehabilitation support can apply for personal rehabilitation 256

Section 3: Characteristics of the Integrated Bankruptcy Act 257
1.
Expansion of Jurisdiction in Personal Rehabilitation Procedures 257
2.
Relaxation of application qualifications 257
go.
257 Reapplication Permitted After Dismissal or Termination of Personal Rehabilitation Procedure
me.
Shortening the period of prohibition against reapplication after receiving a discharge decision 258
3.
Comprehensive Injunction 258
4.
Suspension/Prohibition of Tax Arrears, etc. 258
5.
Special provisions on the full order (Article 616 of the Act) 259
6.
Supplement to the Regulations on Exempt Property 259
7.
Supplement to the Regulations on the List of Creditors 260
go.
No need to withdraw the judgment confirming the debt investigation 260
me.
Granting Execution Power to Individual Rehabilitation Creditors' List 260
all.
260 If litigation is ongoing
8.
Shortening the repayment period 261
9.
Minimum Payment System 262
10.
Deposit of payments pursuant to the performance of the repayment plan 262
11.
Reasons for cancellation before approval 262

Chapter 2 Preservation Measures and Suspension/Prohibition Orders 265

Section 1 Preservation Measures 265

Section 2: Cessation and Prohibition Orders 265
1.
Suspension/Prohibition Order by Application 265
2.
Injunction 267
3.
Scope of delivery of cease and desist orders 267
4.
Effects of suspension and prohibition 268
5.
Duration of the suspension/prohibition 268
6.
Comprehensive Injunction 269

Chapter 3 Decision on Initiation 275
1.
Psychology of whether to initiate or not 275
go.
However, in the following cases, the application for disclosure may be rejected (Article 595 of the Act).
275
me.
After the commencement decision, the court proceeds with the following procedures simultaneously with the decision to commence personal rehabilitation proceedings.
275
2.
Effect of the Decision to Open 276
go.
Debtor's Status 276
me.
Suspension and Prohibition of Other Bankruptcy Procedures 276
all.
Suspension and Prohibition of Enforcement, Attachment, and Provisional Dispositions 276
la.
Prohibition of Payment 277
mind.
Suspension/Prohibition of Tax Arrears, etc. 277
bar.
Suspension and Prohibition of Lien Establishment and Lien Execution Auctions 277
buy.
Continuation or cancellation of suspended proceedings or dispositions 278
ah.
Other effects 278
3.
279. Method of Appealing a Decision to Open, etc.

Chapter 4: Personal Rehabilitation Claims and Separate Rights 281
1.
Personal Rehabilitation Claim 281
go.
General Priority Personal Rehabilitation Claims 281
me.
Subordinated Personal Rehabilitation Bond 282
all.
Term Bond 283
2.
Personal Rehabilitation Foundation 283
go.
Personal Rehabilitation Foundation 283
me.
Property and exempted property not belonging to the personal rehabilitation foundation 284
3.
Personal Rehabilitation Foundation's Bond 284
go.
The Significance of Personal Rehabilitation Foundation Bonds 284
me.
Scope of Personal Rehabilitation Foundation Claims 284
all.
Payment of Personal Rehabilitation Foundation Debt 285
4.
Special Rights 285
go.
Special Rights in Personal Rehabilitation Proceedings 285
me.
In the case of a lease deposit return claim, 286

Chapter 5: List of Personal Rehabilitation Creditors 289
1.
List of Personal Rehabilitation Creditors 289
2.
Things to keep in mind when creating a list 289
3.
List-Making Tips 290
go.
Base point for calculating bond amount 290
me.
Current Amount 291
all.
291 If the debtor is a guarantor
la.
Amendment and Change of the List of Creditors 291
4.
Confirmation of Personal Rehabilitation Claims 292
go.
Confirmation of Personal Rehabilitation Claims 292
me.
Personal Rehabilitation Claims Investigation Confirmation Trial No. 293
all.
Objection to the Final Judgment on Investigation of Personal Rehabilitation Claims 295
la.
Individual Rehabilitation Creditor List 296

Chapter 6 Repayment Plan 303
1.
The significance of the repayment plan 303
2.
Description 303
go.
Required Information (Article 611, Paragraph 1 of the Act) 303
me.
Optional Information (Article 611, Paragraph 2 of the Act) 304
3.
Payment Commencement Date and Payment Period 304
go.
Payment Commencement Date 304
me.
Repayment period 305
4.
Method of preparation according to the requirements for approval of repayment plan 305
go.
Requirements for Repayment Plan Approval 305
me.
Principles for Creating a Repayment Plan 306
all.
Calculating monthly payment 312
la.
Calculating Income 313
mind.
Calculating the Cost of Living 314
1) Consideration 314
2) Consideration 314
3) Classification by median income per household in 2024 and 2025 315
bar.
Handling of Unconfirmed Personal Rehabilitation Claims 317
buy.
Handling of Lease Deposit Refund Claims 320
ah.
321 if there is a full command
5.
Practical Issues 322
go.
Distribution based on principal 322
me.
Handling of Seizure Reserves 323
all.
Processing of civil servant pension loans, etc. 324
6.
Order to Amend Payment Plan 325
7.
Repayment Plan, Article 10. Other Information 325
go.
Guarantor Handling Guidelines 325
me.
Handling Instructions for Joint Guarantors 325
all.
National Pension Service Retirement Allowance Loan Processing Guidelines 326
la.
Shortening of the payment period in cases of unconfirmed claims and special rights 326
mind.
The validity of the entire order 327
bar.
If your wages are garnished and the garnishment must be used for the first payment, 327
buy.
Post-retirement repayment plan 327

Chapter 7: Abolition of Procedures and Approval of Repayment Plans 329
1.
Abolition (non-approval) of personal rehabilitation procedures 329
go.
329. Abolition before approval of repayment plan
me.
329 Cancellation after approval of repayment plan
all.
329 Appeal Against the Termination of Personal Rehabilitation Procedures
la.
Effect of Non-Approval of Repayment Plan 330
2.
Approval of the repayment plan 330
go.
Effective Date 330
me.
Latency of suspended enforcement proceedings 330
all.
Other 331
3.
How to Appeal a Payment Plan Decision 332
4.
332 Processing of business after approval of repayment plan
go.
332. Abolition of personal rehabilitation procedures after approval
me.
Change in repayment plan 332
all.
Application for temporary payment and processing method 333

Chapter 8 Disclaimer and Cancellation 335
1.
Effect of Indemnification 335
go.
The Meaning of Immunity 335
me.
Exemption Bond 335
2.
Cancellation of immunity 336
3.
Special Exemption 336
go.
This is 336
me.
Procedure 336
all.
Note 336

Chapter 9: Preparation and Submission of Application for Initiation of Personal Rehabilitation Procedures 337

Section 1. How to Write an Application for Initiation of Personal Rehabilitation Procedures 337
1.
Application for Initiation of Personal Rehabilitation Procedure 337
go.
Personal Rehabilitation Case Process 339
me.
Application for Initiation of Personal Rehabilitation Procedure 339
2.
List of Personal Rehabilitation Creditors 341
go.
How to Create a List of Creditors in Personal Rehabilitation 342
me.
Appendix 1.
Details of special bonds and similar bonds 344
all.
Precautions when preparing a list of creditors 347
la.
Appendix 2.
Details of disputed or anticipated claims 349
mind.
Appendix 3.
All Command Details 350
bar.
Appendix 4.
Other 350
3.
Inventory 351
go.
How to Create an Inventory of Assets 352
me.
Precautions when preparing an inventory of assets 355
4.
List of Income and Expenses 356
go.
How to Create a List of Income and Expenses 357
me.
359 Things to Consider When Listing Income and Expenses
5.
Statement 360
go.
Career 360
me.
Current housing situation 361
all.
Debt Situation 361
la.
364 Use of past exemption procedures, etc.
6.
Repayment Plan 365
go.
Basics 365
me.
Calculation of the expected payment amount by creditor (Table of expected payment amounts) 366
all.
Payment rate 366
la.
Comparison with liquidation value 367
mind.
In the case of a 100% repayment plan, 367
bar.
368 Available income when an external rehabilitation committee is appointed
buy.
Repayment plan '10.
In case of 'Other Matters', 368
ah.
Precautions when preparing and revising a repayment plan 369
7.
Corrective Recommendations and Response Measures 371

Section 2: Repayment Plan Case 373
[Case 1] List of Individual Rehabilitation Creditors 373
[Case 2] List of Individual Rehabilitation Creditors with Priority Rights 377
[Case 3] Repayment Plan 380: Repayment using only available income
[Case 4] Case 391: Repayment Plan for Garnishment of Disposable Income and Wages
[Case 5] Repayment Plan 401: Repayment through Disposal of Disposable Income and Property

Section 3 Rehabilitation-related forms and cases 410
1.
Case 412: Notice of Initiation of Personal Rehabilitation
2.
Case 414: Decision on Commencement of Personal Rehabilitation
3.
Immediate Appeal Against the Dismissal of Personal Rehabilitation Application No. 415
4.
Form 420, Submission of List of Assets Not Belonging to the Personal Rehabilitation Estate
5.
Objection to Personal Rehabilitation Claims Form 421
6.
Case 424 of the Prohibition Decision
7.
Injunction Application Case 425
8.
Application for Determination of Exempt Property Form 427
9.
Case of exemption decision (when payment is not completed) 429
10.
Case of exemption decision (upon completion of payment) 430
11.
Free Residence Verification Form 431
12.
Case 432: Submission of a Repayment Plan Amendment
13.
Case 433: Submission of Amendment to Repayment Plan
14.
Case 434: Decision on Repayment Plan
15.
Correction Case 435
16.
Debt Certificate Case 436
17.
Debt Proof Case 437
18.
Income Certificate Case (Workplace) 438
19.
Income Statement Form 439
20.
Import Status Report Request Form 440
21.
Expected Retirement Allowance Verification Form 441
22.
Application for issuance of original copy of approval decision 442
23.
Application for Withholding of Deposit Form 443
24.
Case Study of Document Submission (Creditor) 444
25.
Request for Submission of Materials Case (Debtor) 445
26.
Certificate of Employment Form 446
27.
Accumulated Amount Confirmation (Document for Salaried Employees) 447
28.
Power of Attorney Case 448
29.
Comprehensive Account Balance Certificate Case 449
30.
Case 450 of the Application for a Cease and Desist Order
31.
Creditor Account Number Report Case 451
32.
Application for Amendment of Creditor List Form 452
33.
Application for issuance of copy of creditor list 453
34.
Attachment Details by Creditor 454
35.
Notice of Change in Date of Creditors' Meeting, Case 455
36.
Debt Adjustment Case 456
37.
Debt Confirmation Case 457
38.
Case 458 of a Certificate of Cancellation and Refund
39.
Form 459 (Certification of Income)

Part 3: Bankruptcy Law and Enforced Execution

Chapter 1 Bankruptcy Procedures and Enforcement 463
1.
Bankruptcy Procedures and Enforcement (Article 348 of the Act) 463
go.
Bankruptcy Claims and Enforcement 463
me.
Enforcement of Bankruptcy Estate 464
2.
Enforcement of Exempt Property (Article 383, Paragraph 2 of the Act) 465
go.
Bankruptcy Estate 465
me.
The Significance of the Exempt Property System in Personal Bankruptcy 465
all.
Exempt Property and Enforcement 466
3.
Exemption Procedures and Enforcement 467
go.
Prohibition and suspension of compulsory execution, etc. during the exemption procedure (Article 557, Paragraph 1 of the Act) 467
me.
Invalidity of enforcement, etc. pursuant to a decision of exemption (Article 557, Paragraph 2 of the Act) 468
all.
Enforcement between bankruptcy filing and discharge decision - establishment of unjust enrichment
468
4.
Release of attachment, etc. on debtor's property 468
go.
Release of attachments, etc. for creditors (when the debtor has assets exceeding a certain level) 468
me.
Release of attachments, etc. for debtors 469
all.
Release of attachment, etc. after exemption decision 470

Chapter 2: Personal Rehabilitation Procedures and Enforced Execution 473
1.
Personal Rehabilitation Procedures and Enforced Execution 473
go.
Cease and desist order 473
me.
Injunction 474
all.
Duration of the effect of suspension/prohibition 475
la.
Effect of the Decision to Open 475
2.
Personal Rehabilitation Procedures and Full Order 476
3.
Approval of a repayment plan and the effect of compulsory execution 478

Chapter 3 Immediate Appeal 485
1.
Legal Provisions - Article 13 (Immediate Appeal) 485
2.
485. Judgment on which immediate appeal is possible
3.
Applicant for immediate appeal 485
4.
Immediate appeal period 486
5.
Method and Effect of Immediate Appeal 486
6.
Procedure after immediate appeal 486
7.
Immediate Appeal Provisions of the Bankruptcy Act [Personal Rehabilitation and Bankruptcy/ () is the relevant law and whether the effect of suspension of execution exists] 486

Chapter 4: Responding to Missing Claims 489
1.
Bankruptcy Claim 489
2.
Effect of Indemnification 489
3.
Claim for exemption from liability for omitted debts 490
go.
Debt Non-Existence Confirmation Lawsuit 491
me.
Responding to Preemptive Legal Actions by Creditors 491
all.
Common Information - Attachment 492
la.
Proof of no fault, good faith 492
mind.
Case Law 492

Appendix: Case Law 495 on Rehabilitation and Bankruptcy

Personal Rehabilitation Procedure Summary 499
Chapter 1: General Provisions of the Personal Rehabilitation System 501
Chapter 2: Personal Rehabilitation Application Procedures 506
Chapter 3 Post-Approval Work Processing Practices 529
Personal Rehabilitation Consultation Form 535
List of Personal Rehabilitation Creditors 538