We’ve all been there. It feels like yesterday when everything was so overwhelming and there was so much to pay, and not enough coming in. Thankfully, you made it through and lived to tell the tale.

So now what? You’ve kept to the arrangements, you’ve paid it all off (apart from the house) but your debt review status still remains.

Below, we’ll briefly explain how you can exit the debt review process.

Section 71 of the National Credit Act states that:

1)     You, the consumer, must be issued with a Clearance Certificate by a Debt Counselor within 7 days after you have:

a)      Satisfied all the obligations under every credit agreement that was subject to the debt re-arrangement order or agreement; or

b)     Demonstrated –

i.     Your financial ability to satisfy the future obligations in terms of the re-arrangement order or agreement under –

aa)   A mortgage agreement for the purchase or improvement of immovable property; or

bb)  Any long-term agreement as may be prescribed;

ii.     That you have no arrears on the re-arranged agreements referred to in subparagraph (i);

and

iii.     That all obligations under every credit agreement included in the re-arrangement order or agreement other than those contemplated in subparagraph (i) have been settled in full.

In summary, if you are currently under debt review, you can only be issued with a clearance certificate when one of two things have happened:

a)      You have paid up all the debts listed in the debt review court order or debt review payment arrangement;

OR

b)     You have paid up all your debts listed in the debt review court order or debt review payment arrangement, apart from your mortgage loan which must not be in arrears at the time of requesting the clearance certificate.

Once you have received the clearance certificate, you will undergo the next steps.

If you were place under debt review by a court order, you will need apply to court for the rescission of the debt review order.

You will have to:

• Issue a rescission application requesting the court to declare that you are no longer over-indebted. Your application must:

• Inform the court that you were declared over indebted by the Magistrates Court and attach a copy of the debt review court order;

• Inform the court that you are no longer over indebted and include the clearance certificate as well as your current financial circumstances at the time of the application; and

• Inform the court that you no longer need to be under debt review.

Once you receive the court order, your debt counselor must notify all of your creditors of the granted rescission order and remove the debt review flag on the credit bureau database.

Should you need assistance with the drafting of the rescission order, kindly contact our offices and we will gladly assist you with removing your debt review status.

Schröter Attorneys regularly litigates in all Magistrates Courts nationwide and will help you cross the final hurdle in this debt review process.