How You Stay Safe with Legal Protection During Debt Review
If you’re wondering how you’re kept safe when you’re under Debt Review, we’ve got the answers for you. The National Credit Act makes sure you have rights to legal protection throughout the process. Let’s break it down in simple terms.
Your Rights Before You Start
Before you even begin with Debt Review, you have certain rights. These rights protect you and are there even before you start. For example, you have the right to:
- Know how much you’ll pay for the Debt Review fees.
- Understand how the Debt Counselling process works.
- Find out why your application is rejected if it ever happens.
Once you qualify, you get even more protection.
Your Rights After You Apply
You’re legally protected right from the start of the Debt Review and for at least 60 business days after you apply. Why 60 days? Well, making your debt easier to handle takes time. The experts need this time to contact your creditors, figure out how much you owe to each one, and create a new budget just for you.
This budget is all about making sure you can still take care of your family’s needs while managing your debts. They calculate how much money you have left after you’ve paid for your expenses.
In these first 60 days, your Debt Counsellor will also send your creditors a proposal. It tells them how much you can pay them every month. If everyone agrees, a court order is applied to legally protect your new payment plan.
During Debt Review, you have the right to:
- Pay an affordable reduced amount.
- Get monthly statements from your Debt Counsellor and a Payment Distribution Agency (PDA).
- Stay updated on all changes that happen.
Your application also legally stops credit providers from:
- Taking you to court.
- Take away your stuff, like your house and car.
- Taking your salary.
As long as you keep making your monthly debt payments, you stay protected. But if you don’t stick to your plan, credit providers can cancel the Debt Review and start legal action.
What About Excluding Debts?
Yes, it’s possible. Usually, all your debts are part of the Debt Review, unless a credit provider has already started legal action against you. If a creditor sends you a special letter before you start a Debt Review, that debt won’t be included. They can still take you to court for it.
What Happens After Debt Review?
Once you’ve paid off all your short-term debts, you have the legal right to get a clearance certificate from your Debt Counsellor within 7 business days. This will remove the Debt Review mark from your credit report.
To make sure you get all this legal protection, pick a Debt Counsellor registered with the National Credit Regulator (NCR). At National Debt Advisors, we have a team of registered counselors who are here to help you. We’ve been voted the number one debt counseling company in South Africa.
To get a free debt assessment and a quote with no obligations, just fill out the form. One of our debt experts will call you back for free. Stay protected and keep your money safe!