Understanding the Process of Cancelling Debt Review in South Africa

At Libertine Consultants, we understand that debt review is not an easy process. Even though our clients realise that they need to make big changes in order to get their finances under control, it can still be tough to tighten a belt that was already pretty snug to begin with. As such, we often hear the question ‘Can I cancel my debt review?’

In a recent case heard by the South Gauteng High Court, the matter of canceling debt review in South African law was addressed. The case involved Hermanus Janse Van Vuuren v Neil Roets & Others (case number 37407/2018). The court deliberated on whether a consumer who has been declared over-indebted can have their debt review set aside. The court ruled that there are three specific circumstances under which a consumer can legally withdraw from debt review.

These circumstances are as follows:

1. If the consumer's financial situation has improved to the point where they are no longer over-indebted.

2. If the consumer has fully settled all the debts that were part of the debt review process.

3. If the debt review was conducted in a way that was procedurally unfair.

It's crucial for consumers to understand their rights and choices regarding debt review. Having a good grasp of the legal aspects of debt review can empower individuals to make well-informed decisions about their financial circumstances.

If you are contemplating canceling debt review, it's advisable to seek legal counsel to comprehend the specific implications for your situation. This recent court ruling offers clear guidelines on when a consumer can withdraw from debt review, providing valuable insight for those dealing with the complexities of debt review in South Africa.