Debt Counselling Process
On this page you will find a step-by-step breakdown of the Debt Counselling Process and how it works. If you are already under debt review you can use the information set out on this page below when you speak to your Debt Counsellor and to ensure that your Debt Review Process is still on track:
Step 1: Your Debt Counsellor’s first duty is to establish whether or not you are “over-indebted.” He/She will do this by undertaking a thorough investigation & assessment of your current financial situation. This determination must be made within 30 days from the date that you apply for Debt Review.
[Note: Your Debt Counsellor has only 60 days (From the date that you apply for Debt Review) to bring your application before the Magistrate’s Court]
Step 2: Once your Debt Counsellor has determined that you are in fact over-indebted, he/she will ask you to complete a Debt Counselling Application Form (This is known as a “Form 16”) which will include:
2.1 Detailed information about all your accounts/debts;
2.2 Your income and expenses;
2.3 Your assets and liabilities.
2.4 Other important documents that you must read very carefully (i.e. Explanation of the Costs of Debt Counselling)
[Important Note: Your Debt Counsellor will draw your credit reports and request Certificate’s of Balances from all your Credit Providers. All of this will be attached to your application form]
Step 3: Within 5 days from your application, your Debt Counsellor must inform all your Credit Providers that you are applying for Debt Review and request that each of them furnish him/her with a “Certificate of Balance” which must state the balance of your account as well as any interest or other charges.
[Important Note: During this period you still have to keep paying your debts but your Debt Counsellor will provide you with an “interim” payment plan for this. All your payments should be made to a registered “Payment Distribution Agent” and not to your Debt Counsellor]
Step 4: Once your Credit Providers receive the COB form your Debt Counsellor they have 5 business days to comply.
Step 5: If your Debt Counsellor determines that you are indeed over-indebted, he/she will notify all your Credit Providers (and the Credit Bureau’s) of this, by sending them a “Form 17.2” document.
Step 6: After determining that you are over-indebted, your Debt Counsellor must draw up a payment plan/proposal (based on all the documents at hos/her disposal plus what you can afford) and send this proposal to all your Credit Providers.
Step 7: If all your Credit Providers accept your payment plan/proposal, your Debt Counsellor must refer your application to Court for approval. Should any of your Credit Providers reject the proposal, your debt Counsellor will still refer the matter to Court for approval.
[Important Note: All of the steps outlined above must be completed within 60 business days form the date that you first applied for Debt Review!)
Step 7: Once the Court approves your Debt Review application, you will have to continue making your payments to the PDA every month.
[Important Note: The PDA must issue monthly statements of your payments & balances upon request by you, or your Debt Counsellor. This way you will always know how your Debt review is progressing]
Step 8: Once all your debt have been settled, your Debt Counsellor will issue a “clearance certificate” which he/she will send to all your Credit Providers as well as the Credit Bureau’s to notify them that you have paid off all your debt. From that moment, your credit reports will no longer show that you were ever under debt review.
Do You Have Questions about Debt Debt Counselling or the Debt Counselling Process?
Call Us! 0861 222 712Or Complete the Contact Form below and We Will Call You:
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