09 Jun How to Exit Debt Review and Restore Credit?
Choosing debt review means you are on the path to improving your finances. Although this process is helping you to overcome your debt, you are still the driving force making it happen. Debt review is carefully designed to help over-indebted South Africans gain control of their debts. The process typically takes 3 – 5 years.
There are different ways that you can legally exit debt review and restore your credit. At Cape Town Legal Consultants, we can help you attain a debt review removal rescission order. Our team can also look over your case and advise you whether exiting debt review is legally possible for you, based on your unique situation.
How to Exit Debt Review
Debt review removal before completing repayments involves several legal pathways, each depending on your financial status and where you are in the process. The most straightforward method is settling all debts under review, after which your debt counsellor issues a clearance certificate (Form 19). This certificate is then submitted to credit bureaus to remove the debt review flag from your credit profile.
Do you want to exit debt review and restore credit, believing you are no longer over-indebted? It is best to approach the Magistrate’s Court to request the cancellation order or to be officially declared financially stable. You will need proof that your financial situation has improved, and it is advisable to consult with a legal expert beforehand. We can help you with all of this.
How else can you exit debt review? If it is early enough in the application that you have not been issued a Form 17.2, you should be able to withdraw from the process. Once the Form 17.2 is issued, this indicates a formal declaration of over-indebtedness, and you will not be able to legally exit without settling your debts. The first step to exiting debt review is to consult with a legal expert from our team at Cape Town Legal Consultants. We understand the process and can guide you forward.
Restoring your Credit
Wondering what happens to your credit when you exit debt review? Once you’ve successfully paid off your debts through debt review, a clearance certificate is sent to all major credit bureaus, who are then required to remove the debt review flag from your profile. Over time, as your report reflects settled accounts, your credit score can start to improve. Use credit responsibly and carefully to rebuild your credit score.
If you’re struggling with credit clearance and debt review removal, we know how frustrating it can be! We are experts in the process of Debt Review removal in South Africa. Let our legal team walk you through the steps to clear your name from ITC records. Contact us today for the best solution to exiting debt review.