1. Case Overview
The debtor worked diligently at a construction materials manufacturing company before starting a wholesale materials business in his early 30s. While initially successful, the economic downturn in the construction sector led to a sharp decline in sales and eventual closure. Attempts to recover through re-employment were insufficient to break the chain of debt. A subsequent attempt to restart the business with funding from the Korea Credit Guarantee Fund ultimately resulted in approximately 200 million won in debt due to rising raw material costs and decreased demand.
 

 

2. Case Specifics
In addition to standard business debts, this case involved priority claims, including unpaid National Health Insurance and National Pension premiums. Furthermore, secured claims existed on commercial equipment, such as a forklift, posing a severe risk of the debtor losing his livelihood. With an average monthly income of only 1.57 million won, balancing the acquisition of minimum living expenses against high repayment demands was extremely complex.

3. Legal Strategy
Law Firm Theo drafted a detailed statement clarifying the debtor's history of diligence and the unavoidable nature of the business failure to seek leniency from the court. By analyzing the complex debt structure, the firm meticulously calculated the unconfirmed claims remaining after the exercise of security rights and integrated them into the repayment plan. Specifically, to guarantee the debtor's actual livelihood, the plan minimized available income while securing the maximum living expenses permissible by law.

4. Outcome
The Incheon District Court acknowledged the validity of the repayment plan submitted by Law Firm Theo and decided to commence personal rehabilitation proceedings. Consequently, the debtor secured a final repayment rate of 8%, amounting to approximately 260,000 won per month. This allowed the debtor to be relieved of massive interest and the majority of the principal, escaping economic hardship and establishing a crucial foundation to return as a functioning member of society.

 ──────────────────────────