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Important issues that a consumer should be familiar with before going under Debt Review.
- All your credit agreements must be included in a Debt Review.
- Time is of the essence - once a credit provider has served a summons or has repossessed an asset, that credit agreement can only be included into Debt Review with the consent of that credit provider.
- If married COP, both spouses will be under Debt Review.
- You will be listed by all credit bureaus as being under Debt Review.
- All current credit facilities are cancelled and all cards must be destroyed.
- You may not enter into any credit agreement or use any credit facilities while under Debt Review.
- You need an adequate disposable income to make a realistic offer to credit providers.
- There is no payment holiday in terms of the process. Repayment under the debt rearrangement plan starts on your next salary date after your debt review registration
- A Magistrate’s Court may be approached if your credit providers do not accept the restructuring plan. The cost there-of can be included in the debt-restructuring plan.
- An annual re-assessment of your financial position may be required.
- If you fail to honour your obligations under the debt rearrangement in timely manner, the Debt Review will be cancelled and credit providers will take immediate legal action.
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