When can a consumer exit the debt review process?

At Libertine Consultants, we realise that debt review is not a one-size-fits-all process. What works for one person doesn’t necessarily work for another; certain consumers require a different approach. This is why you need a knowledgeable debt counsellor by your side to make sense of the process.

date: 16/10/2017Author:

We are often asked when consumers are allowed to exit debt review. Here is our concise answer to this complicated question:

Under the National Credit Act, you have the right as a South African citizen to have your debt review process cancelled even if your accounts have not been settled in full. This will however require a court application to prove that you are no longer over-indebted. Debt review exit can follow one of three scenarios:

All accounts have been settled in full

This is the simplest scenario. Once all your accounts that were subject to the debt review order have been settled, your debt counselling comes to an end and you will be issued with a clearance certificate.

All accounts have not been settled in full

You have to right to rescind a debt review order that was made an order of the court. If you choose to do so, you will have to renegotiate payment terms with your creditors and make payments in respect of outstanding amounts personally. Creditors may refuse to make these arrangements until the review order has been rescinded, so you may not know what you're letting yourself in for. A good credit counsellor will assist you in assessing and evaluating whether you'll be capable to make these direct payments if you exit the review process.

All accounts, except a home loan or large credit agreement, have been paid in full

If all of your accounts that were included in the debt review agreement have been settled, apart from a home loan or other large credit agreement that is not in arrears at the time of exit (pertaining to the review agreement in place at the time), you are allowed to exit debt review with a clearance certificate.

PLEASE NOTE: Every debt counselling case is different. Don’t make any rash decisions without consulting your counsellor. Each case has to be evaluated on its own merits.

Get in touch & stay informed For more information on the South African debt review process and your rights as a consumer, get in touch with a Libertine Consultants representative today. As debt counselling specialists, we are able to assess your individual situation and provide you with tailor-made advice.

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