Clearance Certificate

Debt Review is a legal process, and there has been much concern and confusion about when a consumer may need to exit the debt review process.

However, many consumers have been left without support from their debt counsellors. In some cases, consumers have been placed under debt review without their consent or knowledge. Additionally, there has been a rise in “so-called debt review removal companies” on social media platforms like TikTok, Instagram, and Facebook, offering to remove or “clear your name” from debt review. In most cases, these are scams.

For this reason, we aim to assist debt review consumers who find it extremely difficult and challenging to exit the process. Ask yourself the following questions:

Have you completed the debt review process?
Is your current debt counsellor no longer practising, uncontactable, or even de-registered by the NCR?
Is your debt counsellor simply not assisting you in the correct manner?

6 Step Process

Step 1

You will need to authorize a registered debt counsellor to review your specific circumstances.

Step 2

A Credit Bureau Check and Debt Assessment is conducted to determine which accounts have been placed under debt review.

Step 3

You will need to provide all your paid-up letters to the debt counsellor. Alternatively, the debt counsellor can obtain these letters for you at a reasonable fee. If you have a home loan, it must be up to date.

Step 4

Your debt counsellor will prepare a Form 19 Clearance Certificate in accordance with Section 71 of the NCA. This certificate will be sent to all your creditors and major credit bureaus, including TransUnion, Experian, XDS, VCCB, and CBP Online.

Step 5

If you haven’t paid all your debts and lack a court order, but your accounts are current and your financial situation has improved, an application to dismiss your debt review will be drafted on your behalf for submission to a magistrate.

Step 6

If your debt review dismissal application is successful, the magistrate will issue a dismissal court order. This order will be sent to all your creditors and major credit bureaus, instructing them to remove you from the debt review process.

NCR Rules to Exit Debt Review

In 2021, the NCR provided much-needed clarity by issuing strict withdrawal rules, guidelines, and regulations for any consumer wishing to exit the debt review process.

Read Here

Before or No Court Order

To exit debt review before a court order is issued, you must:
- Prove that you can afford to pay your debt according to the contractual payment agreements.
- Ensure all your accounts are up to date with no arrears.
- Confirm that none of your accounts have been handed over to attorneys or debt collectors.
- Provide clear evidence that your financial situation has improved.

With the help of your debt counsellor and an attorney, you can approach a magistrate’s court to apply for your debt review matter to be dismissed or rejected.

After a Court Order

Once a debt review court order has been granted, the only way to exit debt review is through Section 71 of the NCA. According to Section 71:
- You must repay all your short-term debt, except for long-term debt like a home loan.
- Once all short-term debt is paid off, you can be cleared from debt review.

If you have any questions or need further assistance, feel free to ask!

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