Debt Review Imposes a Restraint on Financial Freedom
To be under debt review means you are no longer in control over your own finances. Your debt counselor is. The credit bureaus will have updated your credit record with your status of being under debt review. You will not be able to get any further credit whilst you are still under this Court Order.
This is not the only consequence of debt, for debt can cause relationships to crumble. When debt knocks on the front door, love escapes silently through the back door…
When Can You Apply to Have Your Credit Status Reinstated?
You can only apply to have your credit status at the credit bureaus re-instated once you are no longer under debt review. This necessitates a Court Application to the Magistrate’s Court where you were formally placed under debt review.
There are three scenario’s when you can bring such a Court Application.
1. When You Have Not Settled All Your Accounts Under Debt Review:
You can only bring an Application to Rescind your Debt Review if it was made an Order of Court. Once the order is rescinded you will no longer be under debt review and payments in respect of any outstanding debts/accounts will then be made directly to the creditors in terms of negotiated payment arrangements.
More often than not, creditors refuse to negotiate such payment arrangements up and until the debt review order has been rescinded. These creditors reason that they cannot accept payments made directly to them by the consumer, whilst the debt review Court Order is still in force and effect. Therefore, where a consumer wants to apply to have such order rescinded, whilst there are still accounts that have not yet been settled in full, it is necessary that a preliminary assessment and evaluation, determining whether the consumer will be in the financial position to afford to make these necessary payments to the outstanding creditors directly, is done.
2. When You Have Settled All Your Creditor Accounts in Full:
Once you have paid all these accounts that were subject to the debt review in full, you can apply to have the Court Order rescinded. You would only require a clearance certificate from your debt counselor confirming that all debts were paid in full whereupon you can approach the Court and request the Order to be rescinded.
3. When You Have Paid All Accounts Safe for a Home Loan Account or a Large Credit Agreement:
You can apply to the Court to have your debt review Order rescinded when all the accounts that were subject to your debt review Order, or agreement, or re-arrangement Order have been paid in full, safe for a home loan account and/or any other large credit agreement that is still outstanding. You can only bring this application provided that there are no arrears in terms of the debt re-arrangement order in respect of the home loan and/or the large credit agreement. If this is the facts, the debt counselor must issue a clearance certificate in support of your application.
Where Can You Get Help?
To get more information about this process and to schedule a telephonic consultation, you can contact DPB Attorneys / Conveyancers on 021 949 5833. Apart from qualified attorneys who deal with debt review applications and applications to have debt review Orders rescinded, they also have a qualified debt counselor in their employment equipped to answer your questions.
It is important that you gather all the necessary documents to make the most of the telephonic consultation. If you do not have any information, request a copy of your debt review Order from your debt counselor as well as a clearance certificate where possible.
An application to rescind your debt review Order will free you from a bad credit rating once the Order has been granted. Act as soon as you can. Take back control of your own finances, be un-shackled now!