How to Apply for Personal Workout (개인워크아웃)

Personal workout is a system that offers hope to those who have been burdened with debt due to sudden economic difficulties. This article will delve into what personal workout is, who can apply, what benefits can be received, the application process, and even strategies for a successful personal workout.

What is Personal Workout?

Personal workout is a representative system of the Credit Recovery Committee that helps with economic recovery through measures such as extending debt repayment periods, installment payments, deferrals, and debt reductions for those who have been in arrears on credit card payments, loans, etc., for three months or more. Compared to the court's personal rehabilitation system, it has the advantages of a simpler process, lower costs, and immediate suspension of debt collection upon application.

Who Can Apply for Personal Workout?

The application requirements for personal workout are as follows:

🔗 Personal Workout Conditions, Support Content, and Application Methods

• Total Debt Amount: You must have debts totaling 1.5 billion KRW or less with one or more financial institutions.
• Arrears Period: You must be in arrears for three months or more on one or more debts.
• Income: You must have income above the minimum living wage or be deemed to have debt repayment capacity.
• New Debt: New debt incurred within the past six months must be less than 30% of the total principal debt.

What Benefits Can You Receive from Personal Workout?

You can receive the following benefits through personal workout:

• Interest Reduction: You can receive a reduction in interest and overdue interest.
• Principal Reduction: Socially vulnerable groups can receive a principal reduction of up to 90%.
• Repayment Period Extension: You can extend the repayment period for up to 10 years.
• Repayment Deferral: You can defer repayment for up to five years.
• Debt Collection Suspension: Debt collection is suspended immediately upon application.

How to Apply for Personal Workout?

To apply for personal workout, follow these steps:

1. Check Eligibility: Check if you meet the application requirements explained above.
2. Prepare Documents: Prepare documents such as identification, income verification documents, and property verification documents.
3. Apply: Visit a Credit Recovery Committee branch or call the customer service center for consultation and then apply.
4. Review: The Credit Recovery Committee reviews the submitted documents and prepares an adjustment plan in consultation with the creditors.
5. Confirmation of Adjustment Plan: If the debtor agrees to the adjustment plan, it is finally confirmed.
6. Repayment: Repay the debt according to the confirmed adjustment plan.

Successful Personal Workout Strategies

• Early Application: It is better to apply early, as the longer the arrears, the greater the disadvantage.
• Accurate Information Provision: You must provide accurate information about income, assets, etc.
• Negotiation with Creditors: You must actively negotiate with creditors to create favorable conditions.
• Thoroughly Prepare a Repayment Plan: You must consistently adhere to the repayment plan.
• Expert Assistance: If necessary, it is advisable to receive counseling from the Credit Recovery Committee or legal counsel.

Frequently Asked Questions (FAQ)

• Can I get a loan even after applying for personal workout?
  • It may be difficult to obtain a loan during personal workout due to low creditworthiness.
• Do I have to pay interest during personal workout?
  • You must pay the remaining interest excluding the reduced interest.
• Will my credit rating recover after personal workout is over?
  • If you repay diligently, your credit rating can gradually recover.

Conclusion

Personal workout provides an opportunity for a fresh start for those struggling with debt. However, it is important to carefully consider before applying for personal workout and to make the best choice for yourself with the help of experts.