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I have questions about the credit card debt collection procedure and personal rehabilitation.

While using a credit card, my salary at the company I currently work for was delayed, so I was unable to pay several million won in card charges. However, I received a notice that debt collection would proceed if the payment was not made. I would like to know whether, when payment is not made not long after the billing due date, the matter proceeds to debt collection this quickly. I would like to know what the debt collection procedure involves and what happens once the matter proceeds to that stage, and whether it is true that personal rehabilitation can stop it.

Debt collection procedure

Personal rehabilitation

Answer

Published: 2025-04-17

Author : ChanWoo JEONG

The debt collection procedure is the process by which a creditor recovers a claim that a debtor has failed to pay on time. If the card charges are not repaid on time within the due date, the financial company carries out demands for payment on its own, and it may subsequently entrust the claim to an external debt collection agency or sell the claim.

As in your case, when the delinquency continues, the card company demands repayment through text messages, telephone calls, and postal mail.

If repayment is still not made within this period, debt collection and legal procedures, such as a decline in your credit rating and a payment order, may proceed.

If a payment order is issued during the debt collection procedure and no objection is raised through an objection filed within two weeks, the order takes on the same effect as a final judgment, so compulsory execution such as attachment of wages and attachment of real estate may commence. You should therefore be careful.

You may feel burdened by the pressure of debt collection.

We provide the following guidance on the methods by which debt collection can be stopped.

When the personal rehabilitation procedure is carried out, debt collection stops immediately. This is a system under which, once rehabilitation is filed with the court and the court grants its approval, creditors can no longer carry out debt collection.

Through the court's decision, the debtor can be legally protected, the creditors' demands stop, and the debtor obtains an opportunity to repay the debt over a set period.

You may first identify the eligibility requirements for personal rehabilitation through a legal consultation with an attorney specializing in debt collection, and then submit the rehabilitation application.

To become free from debt collection, filing for personal rehabilitation through prompt preparation of the necessary documents is a priority.

If you need assistance with personal rehabilitation or bankruptcy, you may wish to request assistance from an attorney at our firm who specializes in debt collection.