What is the 60-day rule for debt review?

The 60-day rule for debt review is an important aspect of the debt review process that is aimed at providing protection to consumers. When a consumer applies for debt review, their creditors are required to stop any legal action or proceedings against them for a period of 60 days.

What is the 60-day rule for debt review?

This rule allows the debt counsellor to assess the consumer's financial situation and determine whether they are over-indebted. During this 60-day period, the consumer is afforded some relief from legal actions such as repossession, foreclosure, or garnishee orders, providing them with an opportunity to work towards a sustainable solution for their debts.

It's important to note that the 60-day rule does not mean that the consumer's debt obligations are put on hold. Instead, it provides a window of opportunity for the debt counsellor to engage with the creditors and the consumer to explore possible debt restructuring and repayment plans. If the debt counsellor finds that the consumer is indeed over-indebted, a proposal for a restructured payment plan will be submitted to the creditors for consideration.

Overall, the 60-day rule for debt review serves as a crucial safeguard for consumers seeking to address their debt problems through the formal debt review process. It offers breathing room and a chance to seek a sustainable way forward while being protected from immediate legal actions by creditors.

​​If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. 

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.