Any South African individual that receives an income and who is over-indebted. If a person’s living expenses and debt obligations exceed their income, they need to consider debt review. Under the debt review process the individual will have the opportunity to pay back their debt in line with what they can afford, without losing their assets, while recovering from their over-indebtedness.
It is similar only in the sense that a client’s monthly instalments are consolidated into single monthly payments through an arrangement that involves a debt counsellor negotiating with the client’s creditors, the client incurring no further debt in the process.
It is different in that, conventional or classic consolidation involves incurring more debt in order to pay for old debts; with the latter method the consumer gets a loan that is bigger than their existing debts, uses it to pay them but is left with more debt.
It is different in that, conventional or classic consolidation involves incurring more debt in order to pay for old debts; with the latter method the consumer gets a loan that is bigger than their existing debts, uses it to pay them but is left with more debt.
No, all your cards (of accounts) will stop working once you are under debt review. You are not allowed to enter into any new credit agreements during the process. Remember, you want to become debt free – incurring more debt is taking steps backward, it will not help.
The National Credit Regulator (NCR) supports, endorses, and regulates the negotiation process between registered and accredited counsellors and credit providers. When you make use of a registered debt counsellor like BBDR, the creditors have to enter into negotiations and they have to consider alternative payments from you.
Once the application has been approved, in other words it has been established that you are overindebted, debt rearrangement has to be presented to your creditors within 60 days. A fixed plan can only be presented to you and the creditors once all the outstanding balances information have been received and your amount payable has been distributed to the creditors.
The costs that you incur consists of debt counselling fees and legal fees. The debt counselling fees that we charge are regulated by the National Credit Regulator and should be the same regardless of which registered debt counselling company you use. The precise costs will depend on the type of debt that you have and the amount of your monthly repayment. Legal fees are also determined based on the type of debt that you have and the amount of your monthly repayment. Both the debt counselling fees & legal fees are incorporated into your debt restructuring plan which means that you will not need to pay any separate upfront fees in order for your application to be processed. Please refer to your application form for more details on how these fees are calculated.
It depends on the amount of debts, we will asses and establish the term accordingly.
Employment is not a requirement for debt review. What is a requirement is an income and proof thereof.
You may apply if someone else is willing to make payments.
Proof of income is required, even if it is only a sworn affidavit.
You may apply if someone else is willing to make payments.
Proof of income is required, even if it is only a sworn affidavit.
If the creditor has commenced with legal action prior to the date of application for review, it is possible because such an account will be excluded from the review.
If legal action is only taken after the date of signature of the application, then the assets will be protected.
It is therefore important to apply as soon as possible to avoid the exclusion of accounts.
If legal action is only taken after the date of signature of the application, then the assets will be protected.
It is therefore important to apply as soon as possible to avoid the exclusion of accounts.
No.
The process only applies to individuals.
In certain cases, it is possible to include surety-ships. This is however only in the case where the company or closed corporation will not proceed with business.
The process only applies to individuals.
In certain cases, it is possible to include surety-ships. This is however only in the case where the company or closed corporation will not proceed with business.
Due to the fact that a garnish is a summons and judgement prior to the review.
It is expected of a consumer to act earlier and not to wait until garnished before doing something about their debt.
It is expected of a consumer to act earlier and not to wait until garnished before doing something about their debt.
It will not. By law, no creditor may hold against you the fact that you were under debt review, provided you completed the process and made your payments.
If the process was abused and payments were not made, then the consumer will be treated as any other non-paying consumer.
If the process was abused and payments were not made, then the consumer will be treated as any other non-paying consumer.
It is law that Community of Property married couples apply jointly as they are considered to own one and the same estate. This applies to debt as well, they own debt together.
COP married couples are deemed as one person and cannot act independently in this regard.
COP married couples are deemed as one person and cannot act independently in this regard.
No. The creditor may proceed with action against the person in whose name the account is, despite the debt review.
Both will have to apply jointly.
Both will have to apply jointly.
There is a difference; when you apply for a consolidation loan, that company pays your debt and you pay that company.
The difference with debt review is that, you pay one monthly instalment which is then distributed to your different creditors by a payment distribution agency (PDA) used by the debt counsellor.
The PDA is also regulated by the NCR, so your money is safe.
The difference with debt review is that, you pay one monthly instalment which is then distributed to your different creditors by a payment distribution agency (PDA) used by the debt counsellor.
The PDA is also regulated by the NCR, so your money is safe.
You request and get a clearance certificate and now your credit record is clean.
No, you cannot be blacklisted while under debt review, you will only be flagged as “Under Debt Review” at the credit bureaus.
You cannot; you may pay extra, which will be to your advantage. Only credit agreements where summons have been issued prior to your application date may be excluded.
Yes you may; once you are done paying your debts you will be issued with a certificate of compliance and the blacklisting will be removed from your name and record.
No. Your information is treated with confidentiality.