13 Feb When Can I Terminate Debt Review?

If you are currently under debt review, you may be wondering when and under what circumstances you can bring the process to an end. Debt review removal is governed by strict legal frameworks, which is why it is important to know all the facts and work with professionals like our team at Cape Town Legal Consultants.

Being under debt review has its advantages and disadvantages. In some instances, you might have entered the process, but no longer need it as your financial circumstances have changed. You may enter debt review and want to withdraw your application before it becomes official. And what if you were accidentally placed under debt review? We are here to help you navigate these challenges successfully.

Before Being Formally Declared Over-Indebted

The earliest and most straightforward time to terminate debt review is before your debt counsellor has formally declared you over-indebted. If you have been issued a Form 17.2, this means you are officially under debt review. Before you receive this form, you have the right to withdraw your application by notifying your debt counsellor in writing.

The best way to be certain that you withdrew successfully is to confirm that Form 17.2 was not issued. It is much simpler to legally remove debt review from your record when you know where you stand.

What If a Court Order Was Granted?

If you have already been granted a court order and been placed under a restricted debt repayment plan, the process is more challenging. It is important to seek legal advice at this point to ensure you are not exposed to creditor action that may significantly harm your credit profile and finances.

In some cases, the best way to proceed is to simply settle all your debts according to your restructured payment plan. This is a straightforward route, and once you have repaid all your debts, your debt counsellor will issue you a clearance certificate (Form 19). This certificate is also sent to the relevant credit bureaus, after which time they are legally obligated to remove the debt review flag from your name.

Another option is to apply for a rescission of the court order before you have fully settled all your debts, but only under certain conditions. This is an option if you were accidentally placed under debt review, or if all your debts (excluding your home loan) have been settled. Note that a rescission will only be granted when valid legal reasons exist, with proper supporting documentation to back it up.

What are the First Steps?

Here is how to check if you are under debt review, so that you know where you stand. It is important to act fast if you are in the early stages of applying for debt review, so that you can withdraw your application in time. If you’ve already been placed under debt review, seek legal assistance from our professional team – we will guide you based on your unique circumstances. CONTACT US today to get started!