Can I cancel my debt review?

Dealing with debt review can be difficult, and many people find it challenging to adjust their budget and make the necessary changes to get their finances in order. As a result, there are often questions about canceling debt review. 

A recent case heard by the South Gauteng High Court, Hermanus Janse Van Vuuren v Neil Roets & Others, has led to changes in the law under the South African National Credit Act. In this article, we will discuss the impact of this ruling and provide information on voluntary withdrawal from debt review.

The court identified three legal ways that a consumer can withdraw from debt review voluntarily. Firstly, a consumer can withdraw before the debt counsellor makes a declaration of over-indebtedness via a Form 17.2(b). 

Secondly, a consumer can withdraw after a declaration of over-indebtedness has been made via Form 17.2(b), but no debt review court order has been processed yet. In this case, the consumer can present additional facts to the court together with their debt counsellor's proposal to facilitate a rejection of the initial over-indebtedness proposal. 

Finally, after a debt review court order has been granted, the only way to legally exit debt review is for the consumer to repay all their short-term debt, excluding long-term debts.

We want to stress that completing the debt review process is always the best course of action. Once you have repaid all your debts as outlined in your debt review order, you will receive a debt clearance certificate. This, combined with a healthy credit score, will pave the way for a more prosperous future and allow you to enter into new credit agreements if necessary. There is also a sense of pride and joy associated with finishing something you have started, which can boost your confidence.

If you need any clarification on any of these terms or have any questions about debt review, feel free to get in touch with a Libertine Consultants representative. Stay tuned to our blog for more expert insight on managing your finances and living a rewarding, debt-free life. If you want to learn more about our credit and debt services, please feel free to contact Libertine Consultants. We are here to help you pave the way to a more financially secure future.

Need advice? We can assist with that too! Submit your inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward. In the meantime, keep an eye on our YouTube channel to get more practical advice on managing the financial stress of the pandemic.