How to Exit Debt Review? Expert Answers

Debt review can severely impact your financial agency. Under debt review, you’re not allowed to take out finance, which can hinder your ability to make large purchases and access credit facilities. Is there a way to exit debt review before you’ve paid all creditors back?

If you can prove you’re not over-indebted or can fulfil your credit agreements as initially contracted, you can file a motion to have debt review removed. Additionally, you can remove the debt review flag from your credit profile once you’ve received your clearance certificate.

Once you’re free of debt review, you can clear it from your credit profile and gain access to credit facilities, enabling you to buy a house, take out vehicle finance, or meet other important financial goals.

Let’s discuss the ways you can remove debt review from your credit profile, either with a clearance certificate or the help of a Credit Rehab attorney.

A Clearance Certificate

After you’ve paid up all your creditors, your debt counsellor will give you a clearance certificate stating that you’re no longer indebted. You can use this certificate to dispute the debt review flag on your credit profile with the bureaux. Your debt counsellor will also acquire debt settlement letters from your creditors to prove that you’re not over-indebted.

To get a clearance certificate, your unsecured debt (like credit card and store card) must be paid, your bond and long-term payments must be up-to-date, and your debt counselling fees must be paid up. Your creditors must update your debt status to “paid”. Then, you can start the credit clearance process.

Dispute Debt Review with the Court

You can dispute debt review under the following circumstances:

• You can prove you’re not over-indebted or able to fulfil your debt obligations as initially agreed.
• You didn’t complete Form 16 to apply for debt review.
• The restructured payment agreement wasn’t received or agreed to.
• There wasn’t a signed confirmatory court application affidavit.
• You didn’t apply for or sign debt review-related documents with the debt counsellor on record.
• The debt counsellor can’t be reached.
• Your debt counsellor no longer works in debt counselling or was de-registered.
• Your debt counsellor’s NCR registration expired.

If you can prove any of these instances, you or your attorney can file a motion for your release from debt review. Note that once you exit debt review, you’re subject to the obligations you initially agreed to and will no longer benefit from reduced interest rates, lowered repayments, and protection from legal action and asset repossession if you default.

After you’ve been released from debt review, the court order and court application will be submitted to the National Credit Regulator (NCR). If your documents are valid, your debt help system code will be updated to G1 or G, which reflects your withdrawal intentions. Come the next billing cycle, the bureaux should have expunged the flag from your credit profile.

Why Enlist an Attorney?

It’s important to use an attorney when withdrawing from debt reviews. Attorneys are trained to observe the proper motion filing procedures and formalities. Mistakes can result in the court dismissing your application, which can make the process take longer. Moreover, attorneys can properly follow up on the process and the expungement of the flag from your profile.

If you would like the help of expert attorneys, contact Credit Rehab. We can help you withdraw from debt review or clear your credit profile quickly and hassle-free.