Debt Review and how you can qualify for it to help ease your financial burden
What is Debt Review?
Debt review, also known as debt counselling, is a debt relief measure in South Africa that helps over-indebted consumers settle their debt within a prescribed period. In essence the process entails that a consumer’s debt is restructured by reducing the monthly payment and extending the term, so as to settle their debt. Most importantly, when under debt review, consumers are protected against any legal action.
How to qualify
Any South African can apply for Debt Review however there exists specific requirements as set up by the National Credit Act, 35 of 2005 in order to qualify for Debt Review. These requirements include firstly that one must be a South African citizen and earn a steady income. Secondly, that a Debt Counsellor must declare a consumer over-indebted. In terms of Section 79 of the National Credit Act, 35 of 2005 this means that after a careful assessment and all available information is processed by the Debt Counsellor, the Debt Counsellor determines that a particular consumer is, or will be, unable to satisfy all the obligations under all the credit agreements to which they are party to, in a timely manner.
Short summary of legal process
If you are of the opinion that you are over-indebted, you can approach a debt counsellor to help you with the legal process. Your debt counsellor must however be registered with the National Credit Regulator (NCR).
For more information, please contact Hammond Pole Attorneys