How to Exit Debt Review

Then and Now

The National Credit Amendment Act (NCA) introduced in March this year specifies when someone can exit debt review, if they wish to do so.

Before then, you had to settle all of your unsecured and secured debts as agreed to in the new repayment plan. This meant you had to stick to the monthly instalments, interest rates and terms, as negotiated by your debt counsellor and credit providers.

It also meant you had to wait until you got a clearance certificate before you could terminate or exit debt review officially. If your home loan was included in your debt review application, you would also have to settle this in full before you could exit.

Now, you are free to exit debt review, even if you haven’t settled your bond in full, though your mortgage payments must be up to date. Also, you must prove to the court that you are in a stable financial position, if you want to exit debt review.

If you start earning more and would like to exit debt review that is your prerogative. But, only if you haven’t missed any of your payments up until that point. Though, remember, that once you withdraw from debt review, your monthly payments will go up again and the original repayment term will stand.

How Do I Exit Debt Review?

Only a court may rescind your debt review order or grant you an order declaring that you aren’t over-indebted anymore, as your debt counsellor doesn’t have the legal authority to do so. In this way, you will have legally exited debt review!

Your debt counsellor will then issue a 15.W to your credit providers, notifying them of your withdrawal from debt review.

What Are My Rights?

You may be hesitant about entering debt review because it means handing money over to a debt counsellor, who then hands it over to a Payment Distribution Agency (PDA). Meanwhile, you’re wondering if your credit providers will actually get the money.

The NCA allows you to make payments directly to your credit providers, if you would prefer to do this. The National Credit Regulator (NCR) states that if you choose to make direct payments to your credit providers, it doesn’t count as non-cooperation. As such, your debt counsellor can’t suspend your debt review services.

Tip: When applying for debt review, look out for a Form 16. Signing this form will mean committing to either paying via a PDA or directly, so make sure you know what you’re agreeing to before signing it.

After Exiting Debt Review

After you’ve made the big exit, you’ll need to send proof of payments to your debt counsellor on a monthly basis, so they can keep these on record.

Lastly, you must send proof of settlement letters from your credit providers to your debt counsellor to get your clearance certificate.

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