December 28, 2022

Debt review removal guidelines

debt review removal

Removal from debt review could be complicated and require you to adhere to strict guidelines. We’ve broken down the process to help you to exit successfully.

If you find yourself under debt review, but you’ve had a change of heart or your financial circumstances have changed, you may be considering withdrawing. It’s entirely possible to withdraw from debt review, but you should note that the process isn’t a simple one.

Once a court has confirmed that you are over-indebted and qualify for debt review, only a judge can reverse that decision. This means there is a long process ahead, and you can only remove debt review status from your financial profile if you followed it carefully.

Get the full report of your current credit profile for free.

Before the debt review removal process

Before you start the debt review exit process, here are a few pointers to keep in mind. Take these points to heart and ensure that you are 100% prepared and able to leave debt counselling.

  1. Reduced instalments will fall away: Once you leave debt counselling behind, the agreements negotiated by your debt counsellor are null and void. You will have to return to making full payments to your creditors.
  2. Waivered fees will return: A debt counsellor will negotiate with companies to waive certain fees and penalties. When you exit debt review, this ends, and all fees will apply along with your monthly instalments.
  3. Creditors can once again take legal action: As you are no longer under the protection of debt review, creditors can choose to take legal action and claim all you owe them. This can result in legal fees, loss of income, and much more.

If you are ready to tackle all these consequences, you can start the exit process by following the steps listed.

How to withdraw from debt review

There are specific steps required before you can withdraw from debt review. This will mean seeking legal advice as a debt counsellor has no control over this process. Depending on your financial status and whether you’ve paid all of your outstanding debts or not, this process differs. If you have been declared over-indebted, as is the case for anyone under debt review, you must complete the following steps.

  1. You can exit debt review by contacting your debt counsellor and informing them of your decision. You will then need to have your debt review/over-indebted status rescinded by a court of law.
  2. A debt counsellor can recommend that you are over-indebted or not, but once you have submitted all of the necessary documentation, a Magistrate will have the final say.
  3. You must include financial documents to prove that you are no longer over-indebted. This is only done under specific circumstances, and rejection is possible if you do not meet all of the criteria. Your debt counsellor will be able to provide specific criteria for you based on your marital status and current state of over-indebtedness.
  4. Once a Magistrate confirms that you are longer over-indebted, your debt counsellor will receive a form and a copy of the court order. This will be sent to all relevant financial institutes to remove the debt review flag from your profile.

You should note that any fees incurred during this process will be payable by you. It is also not a guarantee that once you start this process, you will be granted an exit from debt review. This will depend entirely on the Magistrate and your financial status.

If you’re unsure how to proceed or need questions answered about this process, contact your Debtline counsellor for more information.