10 Oct Can I Exit Debt Review Before Final Repayment?

Debt review can be seen as a lifeline to consumers overwhelmed by debt. You are protected from creditors and legal action, and pay a manageable monthly repayment towards your debts, until it is paid back in full. Financial freedom becomes attainable with this newfound structure, but exiting debt review early is not as straightforward as you may think. Debt review removal before completing repayments is possible but is a detailed process that is best overseen by a legal representative.

If you are asking, “Can I exit debt review before final repayment is made?” it is best to seek legal advice based on your specific situation. Usually, you enter debt review and remain under the process until you have repaid all your debts and been issued a debt clearance certificate. If your financial circumstances have changed and you are wondering how to exit debt review and restore credit, keep reading.

Before Being Declared Over-Indebted

There is a time frame after applying for debt review and before being declared formally over-indebted that you can request to withdraw from the process. This request should be made directly to your debt counsellor. If you have not yet received the Form 17.2 that officially places you under debt review, you can choose to withdraw without much difficulty. The first step? Confirm that no Form 17.2 was issued or submitted – this is the only way to exit without a court application or clearance certificate.

Obtain Your Clearance Certificate

This is the most straightforward way to exit debt review once you’ve been declared over-indebted, and does not require any legal assistance. Pay back all your debt through your restructured payment plan, and once these are all settled, your debt counsellor should issue you with a clearance certificate (formally known as a Form 19). This certificate is also sent to the credit bureaus, so that they can remove the debt review flag from your credit profile.

Rescission of the Court Order

This process of setting aside (or rescinding) a debt review order is complex but useful in certain situations. If you feel your financial position has improved to the point where debt review is not necessary and most of your debt has been settled, you can apply for rescission. This is not generally a good enough reason to exit debt review early, and you will need evidence supporting your claims of financial stability.

Generally, rescissions of the court order are granted when you were incorrectly placed under debt review. In some cases, you can apply for a rescission order when requesting a clearance certificate, in cases where all your debts (except a home loan) are fully settled. As experts in debt review removal, Cape Town Legal Consultants can assist you for the best results.

When answering the question “Can I exit debt review before final repayment is made?,” move forward with the support of legal professionals. CONTACT US today to get started. We can also assist with ITC clearance for debt review once you’ve successfully exited the process and paid off your debt.