Will I lose my financed vehicle if I go under Debt Review?

What if You Have a Balloon Payment on Your Vehicle Finance? #

If you have a balloon payment linked to your vehicle finance when applying for debt review, the balloon payment will be included under the process in your new monthly instalment. You will no longer be liable to pay the balloon payment in full at the end of the repayment term.

What Will Happen to Your Vehicle Insurance? #

If your car is still financed, it is mandatory that you have comprehensive active vehicle insurance for the vehicle. This rule remains in place should you apply for Debt Review. Once the Debt Counsellor starts contacting the credit provider that your vehicle is financed, the credit provider will most likely request proof of vehicle insurance from the debt counsellor, which the client will need to provide.

When Will Your Vehicle Not Be Protected? #

Debt review can protect your vehicle from car repossession in most situations. However, if the following has occurred, there may be little that debt review can do to save your asset. These situations are:

  • If you have received a Section 129 Letter of Demand
  • You have missed payments on your debt review
  • You have terminated your debt review

Because debt review acts as a legal protective measure against creditors and shields you from repossession of assets, it is necessary to start the process as soon as possible. When you realise that you are no longer able to afford your monthly debt repayments, make sure to contact ezDebt Solutions immediately to ensure everything you have worked for is not out of your hands.

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