Debt Review Process
REGISTRATION FOR DEBT REVIEW IS A VERY QUICK AND EASY APPLICATION.
PROTECTION UNDER THE ACT CAN BE DONE WITHIN 24 HOURS TO STOP REPOSSESSIONS.
Debt Review Process. Registration for debt review can be done within one day. This all depends on how soon we get the relevant information from the client. Meaning that we can give you protection under the Act with debt review within 24 hours.
To apply for debt review we will send you an application form to complete, which you submit with a copy of your ID and the latest proof of Income.
First, the Debt Counsellor will assess if you are over-indebted.
You will then be contacted for a formal consultation, whereby the process and payments will be explained to you. (This can be done telephonically)
The form 16 together with all the relevant paperwork will be sent to you for signing, whereafter as soon as we get these signed documents back, we can start off with the process.
Normally within 5 business days, the norm, but with SA Debt Review within 24 hours, we will notify your credit providers of your application. The Debt Counsellor does this by sending your creditors a prescribed form 17.1 and calling on them to issue a “COB” –
Certificate of Balance. Which will include the outstanding balance, accrued interest and charges.
Within the first 60 business days from the date of application, legal action may not be taken against you in respect of debts that are “under review”
This means that if a credit provider did not take legal action against you, we have two months to in which to negotiate a payment arrangement. But if they did take legal action prior to the registration for debt review, you will not have this protection and these debts may be excluded from debt review.
Once the registration has been completed, he or she is obliged to follow a certain procedure as prescribed on the National Credit Act.
You will be under debt review within 24 hours. Within 10 business days after registration, a form 17.2 as prescribed will be sent to your creditors with the determination that you are over-indebted.
The debt counsellor will then draw up a repayment plan to re-arrange your debt obligations in line with what you can realistically afford, this will be sent to your creditors within the 60 business days from registration.
If all your creditors accept the repayment plan, the Debt Counsellor will refer the matter to the Magistrate Court and get a consent order.
A PDA will channel your payments to your credit providers, this information will be given to you with the formal consultation.
Once all the debt has been paid in full, the Debt Counsellor will issue a clearance certificate and notify the credit bureaus that you are no longer in debt counselling.