Removal Of A Debt Review Order
Nozipho Mvulane
A debtor can apply for debt review where they are over indebted. This is an application done with the assistance of the debt counselor through an order of court.
Debt review is a process where a debtor can lawfully restructure their debt in order to meet their obligations. This has its benefits, but it also, has its lesser implications. A debtor will not be able to enter into any other credit agreements during this time. They will not be able to obtain any loans, cell phone contracts as well as enter into any credit agreements.
Similarly, where a debtor has met their obligations under debt review, except their mortgage/bond payments, they may also terminate their debt review arrangement.
Where a debtor feels that they no longer want to be under debt review (and having fulfilled certain requirements), they may apply to court to get the court order rescinded.
Removal of debt review by the debtor
A debtor may then apply to court for an order removing debt review from their records. Where the order is granted, this will have the effect that the debtor has not applied for debt review. This may mean that any payment arrangements or any interest that was lessened, may be reversed.
The application must be filed to court and also served on the:
- various creditors
- court
- debt counsellor
- National Credit Regulator
The debtor may also apply for the removal of the debt review where they have sufficient proof that their debt counsellor has not fully performed their duties, to the detriment of the debtor.
Removal of debt review by a credit provider
Debt review may be terminated by the credit provider if:
- the debtor is in default under a credit agreement as well as the court order. The credit provider in respect of that credit agreement may give notice to terminate the debt review to the:
- debtor (the consumer),
- debt counsellor, and
- National Credit Regulator.
For any further information and assistance, please feel free to contact Rajaram Mvulane Attorneys at info@rajarammvulane.co.za
