When can I terminate the Debt Review process?
As a consumer undergoing Debt Review, you can exit the process and be issued a Debt Clearance certificate. This is done by successfully paying off all debt obligations listed in the repayment agreement or Debt Review court order. If you own a property and have a mortgage loan which is not in arrears according to the Debt Review court order or repayment plan, you can also be issued a Debt Clearance Certificate, as long as all relevant short-term credit agreements are paid back in full.
Does a Debt Counsellor have the right to withdraw/terminate the Debt Review process?
No, a Debt Counsellor does not have the power or authority to withdraw or terminate the process of Debt Review. From the 19th February 2015, Withdrawal by a Debt Counsellor (form 17.4, status code H) was eliminated as a legal option and may no longer be implemented.
Is it possible to withdraw from Debt Review after a court order is granted?
Yes, but only if you’re successfully issued with a second court order, which originates from a court application for the recession of the Debt Review order granted. This court application, handled at the relevant Magistrate Court, requests that you as the consumer no longer be listed as over-indebted. Through this application for recession, the court must be advised that you were originally declared over-indebted. The application also needs to state that you’re not over-indebted anymore and can thus exit the Debt Review process – accompanying the application for recession should be a motivational breakdown of your current finances, as well as a copy of your Debt Review court order. It is important to note that the rescission application is at your own expense.
Once you’re granted a rescission court order, a Debt Counsellor should ensure that all your creditors are notified, while also attaching your recession court order in this correspondence with them. The Debt Review flag should be removed from your credit profile.
I have not yet been granted a court order – can I withdraw from Debt Review?
Yes, if the conditions following have been met. If you are withdrawing from the Debt Review process before declaration of over-indebtedness, the Debt Counsellor will need to update DHS of your withdrawal through the applicable status code, as well as issue a 17.W form.
If you’ve already been declared over-indebted and your creditors were issued the relating 17.2 form, you need to deal directly with the Magistrates Court in order to take the steps needed to exit Debt Review. A court application must be made, which serves to declare that you are no longer over-indebted, while rejecting the recommendation of your over-indebtedness by the Debt Counsellor. This application should state that the Debt Counsellor found you to be over-indebted, that you are no longer over-indebted and that you will no longer benefit from the Debt Review process. A motivational breakdown of your current financial situation and copy of the 17.2 form should accompany this application. Again, you as the consumer are liable for all costs relating to this application.
While underdoing Debt Review, can a Debt Counsellor choose to suspend their service?
If you are not abiding to your side of the agreement and have not been cooperating with the Debt Counsellor, then yes, the Debt Counsellor can suspend their services to you. In order for the Debt Counsellor to legally suspend their services, they first need to issue you with a notice of suspension, which clearly outlines their reasoning, the steps taken in events of non-cooperation and that you will have 10 working days to prove that you’re on the right track and willing to cooperate. If after 10 working days you have not responded or made the necessary improvements to the situation, you will be notified via a 17.7 form of the Debt Counsellors suspension of services.
Can I be transferred to a different Debt Counsellor?
Yes, you can do so at any time during the Debt Review process, without being charged a new application fee. Your application will continue where it left off with your previous Debt Counsellor, after the transfer has been processed by the National Credit Regulator (NCR). You will need to provide the following documents to initiate the transfer – a copy of your ID, a consenting 17.7 form signed by your previous Debt Counsellor and sent to your relevant credit providers, as well as a signed acknowledgement letter from your new Debt Counsellor.