How to Get a Court Order to Remove Debt Review

Debt Review can be a hassle and a half. You can’t access new credit when you need it, it wrecks your credit, and debt counselling fees can be astronomical. It can be emotionally draining not being able to access credit. So, how do you get a court order to remove Debt Review, and what do you need to get one? This blog answers all questions about getting a court order to remove Debt Review.

What do you need to get a court order that removes Debt Review?

The most common way to exit early is to gain an ever-coveted Debt Review removal rescission order. This is when you apply to the Magistrate’s court for rescission if all your debts have been paid or you’re no longer over-indebted. Meaning:

  • Your credit agreements no longer exceed your current income.
  • You don’t overspend.
  • You have an emergency fund.
  • You can make more than the minimum credit payments.
  • You have disposable income.

It’s recommended that you consult a legal professional professional before doing this. Laws and procedures can be complex, and a lawyer can guide you through the process effectively. It’s important to remember that these are just possibilities, and success is not guaranteed.

Other reasons you could use to exit debt reasons

Here are some arguments you can use to exit Debt Review. Remember to gather supporting evidence and documentation.

  1. Increased income: If you have a significant increase in income that is sustained and stable, you can illustrate you’re able to manage your debts without the help of the program.
  2. Debt payoff: A substantial debt repayment shows you’re actively managing your finances and reducing your over-indebtedness.
  3. Improved Financial Management: Proof of a well-developed budget, debt consolidation plan, or successful track record of managing your money without falling behind on payments can show you’re no longer reliant on the program.
  4. Inheritance or windfall: Receiving a large inheritance or windfall (a large, often unexpected, amount of money) could allow you to pay off a large part of your debt, and may be reason enough for an early exit.
  5. Errors in Debt Review: If there were errors in calculations, you could use this to exit the process– though isn’t a particularly strong argument.

Discuss the above arguments with your debt counsellor– you may well find a solid rebuttal against the court.

Preparing for getting a Debt Review exit court order

First, you’ll need to gather evidence that supports your argument. Think of documents like payslips reflecting increased income, paid-up letters from debtors, proof of significant debt repayment, or a well-crafted budget plan showcasing responsible financial management. Then, collaborate with a lawyer to navigate the complexity of Debt Review exit legislation and court procedures. An attorney can advise the likelihood of your success and guide you through the process. Be sure to ask about the potential costs involved.

After this, you’ll work to prepare a court application outlining:

  • Reasons for exiting the process to demonstrate you’re no longer over-indebted.
  • Supporting evidence (payslips, debt repayment records, budget plans).
  • Legal arguments supporting your case.

Depending on how complicated your case is, there might be a court hearing. Your attorney will represent you and argue on your behalf. If your application, explore other options, like faster repayment.

Options to Speed Up Debt Repayment

If your application is rejected, consider exploring other means of a speedier Debt Review exit. You could negotiate lump-sum settlements with creditors, which can help with convincing them to settle for a lower amount. This reduces your overall debt and shortens the repayment period.

Also, try to prioritise debts with higher interest rates first, which reduces your overall costs–the avalanche method. It also frees up funds to tackle other debts faster. The snowball method focuses on paying off smaller debts first, which can provide a psychological boost.

Another way to expedite debt repayments is to increase your monthly repayments, if possible.

Court order to remove Debt Review.

You can free yourself from Debt Review if you can prove you’re no longer over-in-debted to the Magistrates Court, meaning your income comfortably covers your debts and living expenses. You can do this using several arguments, such as proving increased funds or proving you can manage your finances with a well-organised repayment plan. Lastly, before heading to court, consult a lawyer to help you understand the process and argue on your behalf, especially during a court hearing.

If you need assistance with Debt Review removal, whether that’s proving financial stability or credit clearance, contact Cape Town Legal Consultants. We’re legal experts in removing Debt Review based in Cape Town.