THE DEBT REVIEW PROCESS
Debt counsellors follow a process outlined by the National Credit Regulator and may only perform a debt review if they are duly accredited. Johan Wepener Debt Counsellors is accredited with the National Credit Regulator.
- On contacting us, you will either receive an application form or a meeting request. In light of Covid-19, we prefer remote/online appointments to minimise the risk of infections.
- During your appointment, your debt counsellor will explain in detail the debt review process and also establish the extent to which you are in debt. Based on this assessment, you will be advised whether you are eligible for debt review.
- If you are eligible for debt review, your debt counsellor will also advise you on what to expect from the process in terms of how your creditors may react to our proposals. You will then be given the opportunity to make an informed decision about entering into debt review. The fee structure for debt counseling and the associated legal fees will also be explained to you.
- If you decide to apply for debt counselling, we will notify your creditors of the application, and request that they confirm their account information. We will also inform the National Credit Regulator and credit bureaus that you are under debt review.
- When your creditors provide the necessary information, we will update the outstanding balance, interest rate and required installment on our systems. We will then calculate a final total repayment amount as well as the amounts that can be offered on each account and submit repayment proposals to the credit providers.
- Your creditors may accept the repayment proposal, suggest counter proposals or decline the proposals without making a counter proposal.
- If agreement is reached with all credit providers, we will obtain a consent order from the magistrate’s court, or the National Consumer Tribunal closest to you. If we cannot reach agreement with all your creditors, we will still prepare a court application for a magistrate to make a final decision on the matter.
- It is important to start making payments in line with the proposals as soon as possible. Once a court order is obtained, the payments must be made according to the court order. If you don’t adhere to the conditions of the court order, you creditors may decide to terminate the debt review.
- We monitor all payments made. Once you have repaid all your debt, we will issue a clearance certificate which will be sent to all credit providers, the National Credit Regulator and the credit bureaus.
- Your credit record will be cleared within 5 days of the above.
The debt review process will not only help you clear your debt and restore your credit-worthiness; it will also equip you to better manage credit and avoid the pitfalls of incurring future credit card debt.
Always use an accredited debt counsellor.