Firstly, the court application must be prepared and a court date must be obtained. The court date is never likely to be less than 2 weeks away, as the court application must be served on the debt counsellor and the creditors.
Furthermore, the allocation of a court date depends on the case load that the court has before it already. This takes a minimum of 20 business days as per the National Credit Act 34 of I can cancel debt review and continue to pay the reduced instalment. If the consumer cannot afford to increase the debt review repayment amounts, preferably to the amounts that they were paying before commencing with the debt review process, it is highly unlikely that the application shall succeed unless the creditors have indicated acceptance of such reduced payments.
Once Debt Review is terminated, creditors cannot take legal action to recover debts. Section 88 3 , provides that a creditor may not take legal action to enforce a credit agreement if the consumer has already applied for debt review and the application has been accepted and the consumer has been declared over-indebted.
This provision only applies while the consumer is under debt review. Q: I want to remove my name under debt review but have not finished paying my debt. Is it possible? Q: I have paid up all my accounts that were under debt review but my credit report still reflects the debt review status. What must I do to remove the debt review status from my credit report?
A: Request a clearance certificate from your debt counsellor and submit it to the credit bureau. The credit bureau will then remove the debt review status from your credit report.
In terms of the new National Credit Amendment Act 14 of which became effective on the 13th of March , the clearance certificate can also be provided where there is an outstanding mortgage agreement or any other large credit agreement which reflect no arrears and are up to date and all the small credit agreements have been paid up.
The debt counsellor will set aside a certain amount of income for the consumer's necessities such as food, school fees, transport costs and so on, and use the remainder of the money to pay the consumer's credit providers. It is possible for a consumer to cancel debt counselling in certain instances, such as after getting a clearance certificate from the debt counsellor. This can only be done before a formal notice is sent to the creditors, saying that the debt counsellor has found that the consumer is over-indebted.
If the application is successful, the debt counsellor must give notice to all of the creditors of the cancellation. Firstly, a clearance certificate can be given by a debt counsellor when all the debts that formed part of the debt counselling has been paid in full.
The debt counsellor must, within seven days of issuing the clearance certificate, file it with the National Credit Register and all credit bureaus. All the information relating to the consumer being under debt counselling must be removed from their records.
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