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Can I withdraw from debt review once a court order has been obtained?

This time of year, there is nothing worse than having to pinch your pennies. At Libertine Consultants, we know all too well that it can be a trying time to be under debt review, while many other family members and friends jet off to gorgeous holiday destinations or go on lavish festive shopping sprees. As such, around this time of year we often get asked whether consumers can withdraw from debt review once a court order has been obtained.

date: 28/11/2017Author:

The most basic answer to this question, according to the 2015 Withdrawal Guidelines, as set out by the National Credit Regulator, is as follows:

Once a debt review court order has been obtained a consumer cannot terminate or withdraw the debt review process, they can however approach the court to rescind the order or apply for an order which declares that the consumer is no longer over-indebted. Upon receipt of the order, a debt counsellor will notify the credit providers of the withdrawal by means of Form 17.W and update DHS with status G.

In short: once a court order has been obtained it becomes very difficult, although not completely impossible, to withdraw from debt review. You will have to approach the court to make it official, and that process in and of itself can be quite expensive.

At Libertine Consultants, we understand that the debt review process can be a trying time for individuals and families. It’s a strenuous process to cut down on all household expenses and to steady the ship until the burden of debt has been cleared. However, it remains our strongest recommendation that once you’re in the process of cleaning the slate, that you buckle down and keep your nose to the grindstone until your credit record is once again in the clear.

The benefits of relieving yourself from the burden of debt cannot be overstated. You will not only be improving your financial situation and create a more stable home environment for your children, you will also allow yourself the mental and emotional freedom to forge the way to a more prosperous future. It’s only once you’ve thrown off the shackles of debt that you are truly free to build a bright new future. Get in touch today to find out more about our range of debt counselling services and how we can assist you to manage your debt more effectively.

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