[expand title=”Does applying for Debt Review mean that I will never be able to get more credit ever again?”] No; once your existing debts are paid up and cleared, your Debt Counsellor will issue a Clearance Certificate. We’ll forward this to your creditors and the credit bureaus with a request to clear your credit record. You are then free to apply for credit again.[/expand]
[expand title=”If I’m under Debt Review and I can’t use a credit card, does that mean that I have to walk around with wads of cash?”] No; you can still use a Debit Card (and a bank account, obviously). This is also useful for Debt Review clients who need to travel and hire cars, book accommodation, etc., as most such service providers will accept debit cards.[/expand]
[expand title=”Can I apply for Debt Review if my debt has already been handed over to Attorneys?”] Yes; The National Credit Act states that a credit agreement (or debt) must be excluded from Debt Review only if the Credit Provider has commenced legal proceedings to enforce their rights and obligations. The definition of “legal proceedings” was clarified under the Amendments to the National Credit Act of March 2015, whereby it was confirmed that the Credit Provider must have “approached the Court”. Obviously then, handing an account over to Attorneys or a Legal Department is not considered to be the commencement of legal proceedings, and the account in question is still eligible for inclusion under Debt Review.[/expand]
[expand title=”Can a Debt Counsellor still help me if I’ve received a letter from a creditor that warns me that I am in arrears ‘in terms of Section 129 of the National Credit Act?”] Yes; Legally, a creditor is required to send a warning BEFORE proceeding with legal action. A “Section 129” letter must advise a debtor of their right to see a Debt Counsellor. The Amendments to the National Credit Act of March 2015 have also clarified that the “Section 129” letter is NOT the commencement of legal action, as the matter in question could not yet have been placed before a Court. Therefore, the relevant account is still eligible for inclusion under Debt Review.[/expand]
[expand title=”Can my creditors refuse to allow me to apply for Debt Review?”] No; the National Credit Act (Section 86(5) & 86(7)) legally requires credit providers to participate in a consumer’s Debt Review if a Registered Debt Counsellor finds the consumer(s) to be over-indebted. The only exception is if the creditor has already “approached a Court” (as discussed in the answer to “Can I apply for Debt Review if my debt has already been handed over to Attorneys?”). If they have done so (i.e. legal action has commenced), they can insist that their credit agreement be excluded from Debt Review. However, in practice, we can still contact the creditor and many times we can negotiate an agreement with them. [/expand]
[expand title=”If I’m married and I want to apply for Debt Review, will it affect my spouse?”] If you’re married OUT OF Community of Property, you can apply as a single applicant (i.e. without involving your spouse). However, if you’re married IN Community of Property, you must both be included and it will be a “joint” application. The reason for this is that Debt Review is a legal process, so it has to take your legal status into account. Being married in Community of Property is a legal contract whereby you’ve agreed to be jointly involved with everything, which includes a Debt Review application. [/expand]