A Debt Relief Plan (DRP) is a viable method of restructuring debt and is a streamlined version of an Individual Voluntary Arrangement (IVA). The key difference is to avoid bankruptcy under a new repayment plan which does not require legal procedures and payments can be made directly with individual creditors.
Choosing a DRP over an IVA, has its advantages. Such as, an IVA can trigger an alert to employers and this may result in disciplinary action by employers, which can result in job termination. Another benefit of using a DRP plan over IVA is the number of creditors (including banks, financial companies, etc.) who are willing to accept the Debt Relief Plan (DRP), which reduces application costs and time to process.
When applying for a DRP, the debtor only needs to prepare a proposal for the debtor ’s repayment capacity, interest rate, number of periods, repayment amount and repayment method for the debtor. Once completed, our company will independently submit to the individual creditors and discuss with them and arrange an agreement that is in the interest of both parties. Once the agreement is established, the debtor will sign a new repayment agreement with the creditor and implement the new repayment plan and direct repayments as scheduled to creditors.
In addition, a DRP does not require a lawyer to apply for an interim order to the court, nor does it need to go to court to hold a creditor meeting. A requirement of IVA is to appoint a person to prepare a repayment report for the debtor, which a DRP does not require. Since DRP does not require lawyers, accountants and do not need to go to court, in addition, after DRP succeeds, there is no need to arrange its repayment through nominees, so DRP can save a lot of unnecessary administrative fees, such as professional fees and court fees, etc. therefore the fee structure of a DRP is preferred over an IVA.
Through a DRP, creditors can create a new repayment plan, so that debtors can reduce the interest calculated, and debt can be repaid within a few years thus debtors can resume a reasonable standard of living without the debt burden. A DRP is suitable for sensitive industries, such as banking, insurance, finance and disciplined forces and the application process can be complete within two months.
DRP can avoid court risk with a high success rate. DRP’s repayment plan is to independently submit creditors, unlike IVA which requires court proceedings, and the result requires a debt ratio of more than 75% to be successful.
Debtors can avoid bankruptcy without having a bankruptcy record, and more importantly, they will not affect their existing work and reputation.
The conditions necessary for the integration of debt relief:
Income: stable income and sufficient proof of income
Expenses: After deducting basic daily living expenses (clothing, food, housing, transportation), 30 to 50% of the balance is used for debt repayment
Repayment period: Completed within 7 years
Sincerity: Provide family status, reasons for debts
DRP Debt Relief Program Benefits all debts, income and expenditure information,
Our company staff specialises in the DRP process and we provide comfort to the customer by reducing doubt and providing a high level of experience with over 100 DRPs completed since 2002 and excellence in service. We have a low cost fee structure cost therefore increasing likelihood of repayment to creditors, which meets bank requirements.
1. Quick submission of the plan: The DRP debt relief plan can be fast and efficiently submitted to the creditors, which is shorter than an IVA which takes 1 week.
Bank approval for DRP debt relief plan is fast; 2 to 14 days for approval. IVA requires a minimum of 4 months.
Quick repayment start: Within one month, the DRP can be submitted and payments commence.
The procedure is simple: once bank approval provided and no paperwork is required for the courts.
In some instances, credit cards or credit accounts can be retained.
You decide on the restructuring of payment plan
Flexible repayment conditions and structure: Depending on the individual conditions of creditors, the repayment period and interest can be adjusted.
DRP debt relief plan is inexpensive: There is no need for a monthly $500 administrative fee which is required in an IVA structure, which can add tens of thousands of dollars.
Leading Debt Relief Plan / Integrated Debt Relief Plan Interbank Debt Relief Plan (IDRP)
The Comprehensive Debt Relief Plan is similar to the Debt Relief Plan. It is also a debt recovery method other than bankruptcy. The goal is to save you, your relatives and friends the monthly repayment interest and extend the repayment period to reduce the monthly repayment pressure. The difference between the two plans is that you or your relatives and friends only need to discuss the method of repayment with the largest creditor (also known as the “lead bank”). If the largest creditor is willing to accept the applicant’s repayment plan, and other creditors agree to the plan, the largest creditor will unify all the applicant’s debts. In the future, the applicant only needs to amortize the debt to the largest creditor in the form of fixed interest and fixed amount according to the repayment method. Applicants can apply through referrals from other creditors, referrals from lawyers or consultants, or directly contact the largest creditors.
However, not all banks and finance companies will accept the debt relief plan, and this plan does not include private debt and illegal loans. You, your relatives or friends need to prepare a backup plan to cope with a financial company that does not want to accept a debt relief plan.
Entrust us to carry out DRP debt relief plan and procedures.
Directly find the professionals of the association, and the members of the participating associations are all semi-duty to help.
The steps are straightforward and simple. direct:
Call for a consultation: make an appointment to our office or other location, allow us to analyze and give professional advice for free over the phone or submit a free DRP consultation
Telephone appointment: appointments are possible.
Free meeting: free meeting with our qualified consultants to analyze your case for free
Decide to proceed: Decide whether to proceed with a DRP and we can support you.