Can You Remove Debt Review?

If you’ve recently applied for debt review and realised that it’s not for you, you may have wondered whether you can remove it or exit it before it takes full effect. You can only remove debt review if the Magistrate’s court hasn’t yet declared you over-indebted, you’ve fulfilled all your obligations, or there was an error in the filing process.

You can only exit debt review before you’ve been declared over-indebted, when your accounts – excluding home loans and other long-term agreements – are no longer in arrears, or when there’s been an error in your application.

When Can You Exit Debt Review?

You can cancel debt review once your accounts are paid off, if you’re not yet declared over-indebted by the Magistrate’s court, or if there was an error in the application filing.

If You Haven’t Received the Debt Re-Arrangement Order

The NCR (National Credit Regulator) published a set of guidelines for withdrawal from debt management that says:

“A consumer who is not yet the subject of a Magistrates’ Court debt re-arrangement order in terms of section 87 of the NCA, may together with the proposal of the debt counsellor present the additional facts to the court to bring about a rejection of the proposal. If the proposal is rejected by the Magistrate, every credit provider and every credit bureau should be notified of the relevant order. This means that in cases where debt re-arrangement order has not yet been granted, the debt counsellor and consumer must place the new facts in front of the Magistrate who can then declare the consumer not over-indebted.”

In summary, this excerpt says that anyone whose debt re-arrangement has not been approved by the Magistrate’s Court can submit additional evidence to disprove their debt counsellor’s proposal and have it rejected – so long as you can prove you can comply with your initial credit agreements. The Magistrate’s court can then declare you not over-indebted.

When You’re No Longer Indebted

The NCA and Amendment 19 of 2014 state, “A consumer whose debts have been re-arranged in terms of Part D of this Chapter, [may apply to a debt counsellor at any time for a clearance certificate relating to that debt re-arrangement] must be issued with a clearance certificate by a debt counsellor within seven days after the consumer has— (a) satisfied all the obligations under every credit agreement that was subject to [the debt re-arrangement]” (section 71).”

Section 71, part 2 (b) (i) says a debt counsellor must, “issue a clearance certificate in the prescribed form if the consumer has fully satisfied all the obligations under every credit agreement that was subject to the debt re-arrangement order or agreement, in accordance with that order or agreement.”

The NCA says you can apply for a clearance certificate when all your debts have been paid off according to your debt review plan.

When There’s Been an Error in Your Application

If your debt counsellor didn’t properly file your application according to the National Credit Regulator’s guidelines, it can issue a finding that you didn’t apply for debt review.

Some errors you could submit include:

• You didn’t sign Form 16 (the application form)
• Your debt counsellor didn’t use Annexure B of the NCR’s guidelines for debt review applications
• Your debt counsellor didn’t compile a COB (certificate of balance)
• An assessment of your finances wasn’t compiled five days after your initial assessment

If these steps weren’t completed, you can file for a debt review rescindal with the Magistrate’s court per regulation 24(1)(b) of the NCR’s guidelines.

Important Note

There are no guidelines for voluntary withdrawal from debt review in the National Credit Act or NCR’s guidelines. You can’t remove debt review if your application doesn’t meet these criteria.

Let Credit Rehab Help You Remove Debt Review

Credit Rehab can help you remove debt review and assess your case per these guidelines. If you feel your case meets any of the above criteria, contact us. We would be glad to be of service.