Who can apply for debt review?

Who can apply for debt review?

  • Debtors who are natural persons (individuals) – juristic persons (companies) as debtors may NOT apply for debt counseling.
  • 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.

What is a Debt Counselor?

  • A person who offers professional advice on methods of debt repayment.
  • A person registered with the National Credit Regulator (NCR) after completion of the Debt Counseling course with an accredited institution.
  • Consumers can verify debt counselors by checking their registration certificate which has the NCR logo and will indicate the debt counselors details and registration number; ·
  • All registered debt counselors should have a window decal ( sticker) at their premises and it should be visible; ·
  • Consumers can also verify registration of debt counselors with the NCR
  • A debt counselor’s main objective is to help a consumer become debt free.

Important facts about Debt Counselling

  • Debt counseling does not provide a payment holiday. You must make payments each and every month from the first month that you apply. You will be listed at the Credit Bureau as being under debt counseling and will not be able to open any new accounts or make further debt. You are not allowed to miss payments of this debt review process or else creditors have the right to take legal action against you.
  • Once the process is completed you will be able to access credit facilities again. An official document is issued by your Debt Counsellor, called the Clearance certificate (Form 19)

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