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YouTube- What to check
- Insolvency registration and the basis for the repayment calculation
- Competent court
- Busan Bankruptcy Court (31 Beobwon-ro, Yeonje-gu)
- Debt limits
- up to KRW 1 billion unsecured, KRW 1.5 billion secured
- Lawyer in charge
- Lim Jae Hyun, Managing Partner
What do I check when choosing an individual rehabilitation lawyer?
There are five things to check: whether the lawyer has registered an Insolvency specialization with the Korean Bar Association (KBA), who personally reviews your income and debt records, whether the lawyer explains the basis for the monthly repayment and repayment period, whether the engagement covers the court's correction orders and the steps after confirmation, and whether the scope of the engagement and the fee are written in the contract. Individual rehabilitation is less a dispute argued in court than a procedure for proving income, assets and debts with documents. So the deciding point is who reviews the documents and who answers the court's requests.
| Check | Why it matters | How to check |
|---|---|---|
| Insolvency specialization registration | The registration classification has no separate field called "individual rehabilitation"; rehabilitation and bankruptcy fall under the "Insolvency" field. The KBA reviews requirements such as at least 3 years of legal practice and at least 30 cases handled in the last 3 years | Search by real name in the lawyer search on the KBA website |
| Qualification and real name of the person in charge | Attorneys and certified judicial scriveners can act for you in filing for individual rehabilitation. The problem is when unqualified staff handle the consultation and document drafting on their own | Check the qualification and name of the person who consulted with you, and the representative's name in the contract |
| Basis for the repayment calculation | Repayments are set from disposable income, which is income minus taxes, living expenses and similar items (Act, Article 579(4)). A low amount promised without basis will change at the correction stage | Check whether you are shown a calculation that includes your income, dependants and assets |
| Handling corrections and follow-up | After filing, the court asks for additional material, and after confirmation repayments continue for 3 years (up to 5 years where there are special circumstances) (Act, Article 611) | Ask whether drafting correction responses, preparing for the creditors' meeting and answering questions after confirmation are within the engagement |
| Written contract | The fee, the costs paid to the court, and what happens if the application is dismissed or the procedure is discontinued often become disputes | Check that the scope and terms are written in the contract |
In the table, "Act" means the Debtor Rehabilitation and Bankruptcy Act.
Which court do I file with in Busan?
A debtor with an address in Busan files with the Busan Bankruptcy Court. The Busan Bankruptcy Court was established on March 1, 2023 and is at 31 Beobwon-ro, Yeonje-gu. Jurisdiction is based on where the debtor's address is, or where the office or place of business at which the debtor regularly works is (Debtor Rehabilitation and Bankruptcy Act, Article 3(1)). A debtor with an address in Ulsan or Gyeongnam may also file with the Busan Bankruptcy Court (Article 3(11) of the same Act).
Once the application is received, a case number is issued. You can check progress yourself with this number under "My Case Search" on the Supreme Court of Korea website, so make sure you get the case number after filing.
Questions to ask at the consultation
- Who personally reviews my documents, and what is that person's qualification?
- What specialization have you registered with the KBA?
- What calculation produced the expected monthly repayment and repayment period?
- Which of my assets will be reflected in the repayment plan?
- Could a recent loan or a recent disposal of assets be a problem?
- When will you apply for a prohibition order or a stay order to stop collection and seizure?
- Who will respond when the court issues a correction order?
- Who will go with me to the creditors' meeting?
- If individual rehabilitation does not fit, will you also consider individual bankruptcy?
Warning signs to avoid
Article 23(2) of the Attorney-at-Law Act prohibits advertising that creates unjustified expectations about the results of the work and advertising that exaggerates facts so as to mislead. In individual rehabilitation, this shows up as follows.
- Promising results, such as "Confirmation is certain" or "Most of your debt will be written off"
- Advertising that leads with confirmation rates or debt reduction rates as numbers
- Advising you to understate your income or assets. Filing false documents can lead to dismissal of the application (Act, Article 595), and a discharge obtained by improper means can be revoked (Act, Article 626)
- Recommending a contract after only staff without an attorney's or certified judicial scrivener's qualification consult with you
- Advising you to take out a new loan to pay the fee
If cost is a concern, call the Korea Legal Aid Corporation at 132 (no area code) to check whether you qualify for legal aid.
How to check Yulmaru against these points
At Law Firm Yulmaru, rehabilitation and bankruptcy cases are handled by Lim Jae Hyun. Lim Jae Hyun has registered an Insolvency specialization with the KBA and serves as a bankruptcy trustee for the Busan Bankruptcy Court, and you can confirm the registration by searching the real name in the KBA lawyer search. Consultations are held mainly at the Seomyeon Office (754 Jungang-daero, Busanjin-gu, a 1-minute walk from Exit 12 of Seomyeon Station). Eligibility and procedure are set out in Busan individual rehabilitation.
Lim Jae Hyun Managing Partner