The answer depends on how far the process has gone
When people talk about “cancelling” debt review, it can sound like there is one process to follow, but there isn’t.
The debt review removal process depends on where you are right now.
Have you only applied? Has your debt counsellor already found you owe more money than you can afford to repay? Or do you already have a debt review court order?
These details make a difference because debt review is a legal process under South Africa’s National Credit Act 34 of 2005. The Act sets out what can happen if you can’t afford to pay your debts.
If you’re trying to work out if or how to cancel debt review in South Africa, first find out which stage you’ve reached.
Take your most important step: Talk to a debt counsellor who is registered with the National Credit Regulator (NCR).
Think of the debt review process as a timeline:
YOU APPLY FOR DEBT REVIEW
You complete a Form 16 and your debt counsellor starts assessing your finances.
First:
YOUR FINANCES ARE ASSESSED
Your debt counsellor works out whether you are over-indebted.
Then:
YOU ARE FOUND TO BE IN TOO MUCH DEBT
A proposal may be made to the Magistrate’s Court to rearrange your debts.
Then:
THE COURT MAKES A DEBT RESTRUCTURING ORDER
Once there is a court order, the rules about leaving debt review become much tighter.
You may also be wondering if you can cancel debt review before there is a court order. The truth is that you can’t just withdraw from the process.
This also means you can’t tell your debt counsellor you’ve changed your mind and ask them to cancel your application.
If your finances have changed, they can put this information before the Magistrate’s Court. The court will consider your current financial position when deciding about your debt restructuring application.
Technically speaking, once there is a debt restructuring order, the normal route out is to meet the requirements for a clearance certificate for debt review under section 71 of the National Credit Act.
Your 4-point debt review process checklist
1. Ask what stage your debt review has reached.
Don’t guess. Get confirmation.
2. Check whether you’ve been found over-indebted.
This affects what can happen next.
3. Find out if a court order has been granted.
A debt review court order changes the legal route available to you.
4. Don’t stop making your agreed payments.
Wanting to cancel debt review doesn’t mean you can stop paying your debts.
The “instant cancellation” red flag
This point is important. The National Credit Regulator (NCR) has warned consumers about companies advertising debt-review removal and asking for large upfront fees.
Helpful tip: Always check that a provider of these services is NCR registered. Ask which legal mechanism they intend using. Get fees and terms in writing.
And be suspicious of guarantees. Nobody can legitimately promise the outcome of a legal or regulatory process without first establishing whether you qualify.
If you’re not sure where you are in the process, you can also speak to National Debt Counsellors (NDC) about your debt review.
Finally, when you’re legally out of debt review, start working on rebuilding your credit score. Check your credit report often and make every payment on time.
Over time, sticking to good credit habits regularly will help you protect your hard earned money.
See what has changed on your credit report
Once your debt review status has been dealt with through the correct process, don’t sit back. Regularly check that the information on your credit record is right.
With Finance365, you can check your latest credit report for free, as often as you like. This makes it easy to keep an eye on your credit information as things change.
