There has been a recent judgement in the Johannesburg High Court about getting out of debt review. There was a lot of uncertainty before and now there is a final judgement. In this article, we discuss what you need to know about the Johannesburg High Court ruling over debt review.
The full bench, and not just one judge, decided that the only way to get out of debt review is to pay up all your debt.
But this excludes your house. You can leave debt review when all your other accounts are paid up and then you carry on paying your house, and you can get credit again like anyone else.
What happened before the High Court ruling?
It took a few years before we realised we had a problem. People mostly don’t want to get out of debt review just after they have started, it’s only when money starts getting better. As soon as we realised the law wasn’t very clear on when people can leave the debt review process, we went to court.
Previously, different judges and magistrates interpreted the National Credit Act in different ways. Some said that if you offered proof that your circumstances have improved, you can leave debt review and take over full payments. Others said you had to finish the debt review process. This new judgment applicable over the whole country has agreed with the latter.
What this means is that there are a whole lot of people stuck in debt review who either stopped paying when something happened and now pay bits and pieces of their debt when they get a phone call.
Then there are some who took over paying their own debt because their debt counsellor moved or just stopped practicing, and they need to get a clearance certificate to get out of debt review.
At RD Debt Counselling, we have had a lot of people coming to us with these queries and we have started a business called Clear Me where we help people who are stuck in debt review or have bad credit records and want to get them fixed.
Are you stuck in debt review or just can’t get your credit record cleared?
Firstly, we do an investigation. We get the credit reports, check the NCR database, and find out as much as we can about how we can fix your situation.
Once we have worked out what we need to do, then we can sit down with you to discuss how we can sort out your situation.
We can help you to get out of debt review, we can issue clearance certificates, or negotiate with your creditors to get your debt review back on track.
We have lawyers who can go to court if that is necessary.
The most important point is don’t just leave it. Sooner or later you might need credit and the time to start fixing is not when you need the credit, it’s long before.
So, if you have a problem getting out of debt review, give us a call for a free consultation. Only once we start doing actual work on your file will there be fees, and you will know exactly how much this will cost you. If finances are tight, we can make a payment plan.
Don’t just leave it. Call RD Debt Counselling today.