Can Debt Counselling Be Cancelled?

Debt counselling is a protective shield for consumers who find themselves in a tight spot with creditors and are unable to make payments. It also offers struggling individuals a glimmer of hope in the form of a structured plan to repay their debts. Yet, life is unpredictable and there may come a time when over-indebted people have a change of heart or a sudden financial upturn.

In such situations, they might consider ending their involvement in debt counselling. When this happens, they often ask the question: “Can debt counselling be cancelled?“. However, it’s important to understand the legal implications that are involved in cancelling debt counselling. These legal implications hinge on where you stand in the debt counselling process.

Your position in the debt review process is a crucial factor to consider when contemplating cancellation. If you haven’t yet received a repayment plan, you have the option to approach the Magistrate Court and make your case for not being over-indebted. The ball is then in the court’s domain, and they will decide based on your circumstances.

If you haven’t been classified as over-indebted by the Magistrate Court, it may be possible for you to cancel the debt counselling process.

Your first step should be to communicate your intentions with your debt counsellor. It’s worth noting that a High Court isn’t inclined to initiate a debt counselling release order for you, the applicant, without concrete evidence that you are no longer over-indebted. Additionally, bear in mind that if you’ve been declared over-indebted by the Magistrate Court, you won’t be allowed to exit debt counselling until every debt and debt counselling fee has been completely settled.

Familiarising yourself with the lawful process for cancelling debt counselling is very important because it will save you from resorting to unlawful shortcuts that don’t actually absolve your debt.

Suppose you’ve already received a debt rearrangement order. In that case, you must fulfil its terms and repay the amounts stipulated before you can obtain a clearance certificate, which is the legitimate way to terminate debt counselling. Ordinarily, the debt counselling process spans a duration of 3 to 5 years, after which your debt counsellor should ensure that you receive your debt clearance certificate, provided all your debts have been dutifully repaid.

In your pursuit of debt resolution through debt counselling, it’s crucial to remain aware of the steps for legal cancellation, should the need arise. If you encounter challenges obtaining your clearance certificate or require assistance with ITC removal, contact Clear Me Now to get the results you need.

As you navigate the maze of debt counselling, it’s essential to understand that this process is designed to assist those struggling with debt while safeguarding their interests. Debt counselling offers a structured pathway to address financial difficulties, shield consumers from creditor actions, and extend a helping hand to those burdened with debts. However, life can take unexpected turns, and individuals may find themselves in situations where they wish to exit the debt counselling programme. Therefore, understanding the legal process for cancelling debt counselling is critical to ensure a smooth and lawful transition.

In summary, the timeline of your decision to cancel debt counselling plays a pivotal role in determining the steps you must follow. If you have not yet been granted a repayment plan, you have the option to approach the Magistrate Court to argue your case that you are not over-indebted. The court will evaluate your circumstances and decide based on the evidence presented. This is the most viable way to cancel debt counselling.

If you need more information and help related to debt counselling, feel free to contact Debtco Group today so that you can get financial peace of mind.