HOW TO EXIT DEBT RE­VIEW

CityPress - - Business & Tenders -

Charles asks:

How do I exit debt re­view now that I can sus­tain my fi­nances?

Be­nay Sager, chief op­er­at­ing of­fi­cer at IDM Group, replies:

One way to exit debt re­view is to set­tle all out­stand­ing debt. Pay all out­stand­ing debt owed to your credit providers (ex­cept a home loan, which is con­sid­ered a long-term agree­ment), re­quest paid-up let­ters, and ask the debt coun­sel­lor to is­sue a clear­ance cer­tifi­cate.

This sce­nario only works if there is no home loan or if the home loan is not in ar­rears in terms of re­pay­ments.

Once all paid-up let­ters are sup­plied to the debt coun­sel­lor, you will be is­sued with a clear­ance cer­tifi­cate.

The debt coun­sel­lor will then ask the Na­tional Credit Reg­u­la­tor to move you to the ap­pro­pri­ate code so that the sta­tus of “no longer in debt re­view” is re­flected at the credit bu­reaus.

Another way is to re­scind the ex­ist­ing debt re­view court or­der or ob­tain a court or­der declar­ing that you are no longer overindebted.

If you do not have a debt re­view court or­der, you can go to court based on the grounds of “im­proved fi­nan­cial sit­u­a­tion” at any point in the debt re­view process to de­clare your­self no longer overindebted.

This will re­quire proof of the im­proved fi­nan­cial sit­u­a­tion – for ex­am­ple, a salary in­crease or a lump sum amount re­ceived.

The bur­den of proof rests solely on you to demon­strate that you are no longer overindebted.

If you suc­cess­fully de­clare your­self no longer overindebted, you will once again be li­able to pay your credit providers back.

Your debt coun­sel­lor will then ask the Na­tional Credit Reg­u­la­tor to move you to the ap­pro­pri­ate code so that the sta­tus of “con­sumer has ob­tained court or­der declar­ing him/her no longer overindebted” is re­flected at the credit bu­reaus.

If you un­der­went debt coun­selling and ne­go­ti­ated rates were im­ple­mented with cred­i­tors dur­ing this process, it is im­por­tant to re­mem­ber that, after be­ing de­clared no longer overindebted, the re­pay­ments will most likely re­turn to the pay­ment amount owed be­fore the ne­go­ti­a­tions took place.

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