Need Help

SEEKING ASSISTANCE FROM CCS

There is this 3-step process to seek assistance from CCS:

STEP 1 – Free information on debt management:
The consumer is invited to attend a free info talk that is being conducted on a weekly basis. This compulsory talk explains the various options in handling a debt problem and the common collection actions taken by the creditors. It will also explain the services offered by CCS so that the consumer can self-assess and decide what he wants to do next.

Consumers are requested to call 1800 CALL CCS (MUST dial 1800 before 2255 227 to get through to CCS) between Mondays – Fridays, 9 am – 6 pm, to register for the talk.

STEP 2 – Credit Counselling:
If the consumer wish to seek further assistance after he has attended the free info talk, he needs to collect the Counselling Session Request Package at the end of the talk, complete and submit it with photocopies of the necessary documents to CCS. We will then set up a one-to-one counselling session for him to discuss his situation in details with a credit counsellor.

Consumers are requested to submit only PHOTOCOPIES of the required documents together with the duly completed Counselling Session Request Package to CCS.

The counselling session is to ascertain the most appropriate solution to the debt problem. It does not necessarily lead to a Debt Management Programme.

STEP 3 – Set up a Debt Management Programme (DMP):
At the counselling session, the counsellor will try to assist the consumer to identify the most appropriate solution for his debt problem. If at the end of the counselling session, both the consumer and his counsellor concurred that the Debt Management Programme (DMP) is the most suitable option, CCS will then work on it, subject to the DMP Review Committee’s approval, put it up for the creditors’ consideration and acceptance.

Consumers are requested to be upfront on all their assets, liabilities, income and other resources available and be open-minded to explore the various options in resolving their debt problem.

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DEBT MANAGEMENT PROGRAMME

The Debt Management Programme, known as DMP, is basically a debt repayment plan. It is an installment plan that allows the consumers to gradually repay their unsecured debt (eg. credit cards and overdraft), the principal amount plus interest charges, to their creditors over a period of time.

This repayment plan is suitable for consumers who are willing ie, have the desire to avoid bankruptcy and the determination to live within a discipline budget, and ability ie, have the means to repay the unsecured debt that they owe.

The DMP is a voluntary arrangement between the consumers and the creditors. In short, it is the creditors’ discretion whether to offer an installment plan and the terms of the repayment.

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OPTIONS IN DEBT HANDLING

There are basically four options in handling a debt problem, namely, Self Administration, Voluntary Arrangement, Debt Management Programme (DMP) and Bankruptcy.

Option 1: Self Administration
As the name suggest, the consumers are to administer the debt problem themselves by liaising with the creditors directly to explain their financial plights and appeal for assistance from the creditors (eg. an installment plan to repay the debt owed).

Option 2: Voluntary Arrangement
The consumers need to engage a licensed professional (eg. lawyer or accountant) to make a composite offer to the creditors. Alternatively, the consumers may also raise the money and negotiate with the creditors directly themselves, and appeal for a discounted lump sum settlement of the debt.

Option 3: DMP
This is an unsecured debt repayment plan via monthly installment payment. It is put up by CCS on behalf of suitable consumers who have the desire, determination and means to repay the debt owed.

Option 4: Bankruptcy
This serves as the last resort when all else fail to resolve the debt problem. The consumers may either wait to be sued by the creditors or file a self-declare bankruptcy petition at the Insolvency and Public Trustee’s Office.

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