When can you voluntarily withdraw from debt review?
Previously, consumers could only exit debt review once a clearance certificate had been issued stating that all their debts were paid in full. Amendments to the act now allow consumers to withdraw from the debt review process if:
A consumer has paid up all the debts that were listed in the court order or repayment agreement. A consumer's short-term credit agreements listed in the court order or repayment agreement (including vehicle financing) has been paid in full AND the only remaining debt is a mortgage loan that is not in arrears in terms of the court order or repayment agreement.
IMPORTANT: A debt counsellor does not have the legal power to terminate the debt review process. Consumers can withdraw from debt review only PRIOR to obtaining a debt review court order. If a court order has already been obtained a rescission has to be filed, of which the full cost of application has to be paid by the consumer.
When would a debt counsellor choose to suspend their services?
At Libertine Consultants, it is our mission to assist all of our clients to the very best of our ability. However, there are occasions when a client makes it a little difficult for us to our job properly, e.g. not paying their debt counselling fees or failing to provide their debt counsellor with relevant information or proof that is applicable to their case. In these instances, we will do our best to solve the situation, but if it persists we are at liberty to suspend our services.
Find out more about withdrawing from debt review
This is a concise explanation of the process of withdrawing from debt review. If you are considering this option, Get in touch with a debt counsellor at Libertine Consultants so we can schedule an appointment to discuss all the legal implications thereof in person. It is always better to have the full picture before you make such an important decision.