Debt review removal
Are you no-longer over indebted?
MORE INFORMATION ON DEBT REVIEW CANCELLATIONS IN TERMS OF
CURRENT LEGISLATION
As a consumer you would have applied for debt review if you were struggling financially.
It often happens that a consumer is over-indebted and applies for debt review. They later find that their financial circumstances have changed and they are now able to service their original monthly debt obligations. This kind of a consumer would have a good reason to cancel debt review. You should only consider coming out of debt review if you are able to manage payments comfortably again or if you have settled all your debts. Another reason could be where there is only one long term agreement remaining such as a home loan. Once all other debts are settled, the consumer should be able to exit from Debt Counselling and pay the bond directly with the credit provider. Before the withdrawal guidelines were implemented, a consumer could simply be removed from debt review by requesting his debt counsellor to issue a 17.4 Form. This is no longer the case and formal processes must be followed in certain instances in order to be removed from Debt Review.
A debt counsellor does not have statutory powers to terminate or withdraw the debt review process. This means that a debt counsellor can no longer issue Form 17.4 and update DHS . There is however varied ways in which a consumer can be withdrawn from debt review which will be
Once a debt review court order has been obtained a consumer cannot terminate or withdraw the debt review process, they can however approach the court to rescind the order or apply for an order which declares that the consumer is no longer over-indebted. Consumers can only withdraw or terminate the debt review process prior to declaration of over indebtedness as per section 86(7) of the Act and issuance of Form 17.2 If a determination is made and no court order is in place, the consumer will remain under debt review. A debt counsellor will notify the credit providers of the withdrawal by means of Form 17.W and update DHS with status G. 5.1 Where section 86(7) determination is made and the consumer is not co-operating