Is debt Overwhelming You?

What does Debt Counselling mean?

It is when a debtor applies to our registered Debt Counsellor to request the rescheduling of his/her debt, as s/he is unable to pay all their obligations under all their credit agreements. It gives a debtor who is over-committed a second chance to repay their debt. Over-indebtedness does not result in the debt being written off, but being restructured.

Who can apply for debt review?

• Only debtors who are natural persons (individuals). Juristic persons (companies) as debtors may NOT apply for Debt Counselling.
• The debt review process is only available to a debtor who is over-indebted and has an income.
• Couples who are married in community of property must apply jointly for debt review.
• Couples who are married out of community of property can apply jointly if they have a joint debt.
• Pensioners can also apply for debt review as pension is an income.

How does the debt review process work?

• Upon approaching a Debt Counsellor, s/he will do an assessment to determine if the Consumer is over-indebted.

• If the Debt Counsellor finds the consumer to be over-indebted on the face of his/her application form, s/he will inform the Creditors of     such a finding.
• The Creditors will respond with a COB (Certificate of Balance) indicating the terms of the credit agreement/s (i.e. outstanding balance, interest rate, monthly installment, contractual term, etc.);
• Based on the information contained in the Creditors’ COBs, a final assessment will be done. Should over-indebtedness be found, a notice and proposal of payment will be communicated to the Creditors - this proposal will offer the Creditors a lower installment, and in some cases even lowered interest rates.
• The Creditors have the opportunity to respond to the proposal by accepting it or by making a counter proposal (the latter resulting in settlement negotiations).
• Finally, a court application will be drafted and issued in a Magistrate’s Court within the area where the Consumer resides (as jurisdiction is conferred upon the person of  the Consumer), making the proposal an order of court.