Can I Cancel My Debt Review and What Are the Risks?

Debt Counselling is a recognised, legal, and transparent debt relief programme that helps countless South Africans overcome their debt problems. But what if you find yourself in a situation where you want to cancel your Debt Review? Knowing what this entails is important because even though it may be possible to cancel debt review, you could face negative consequences if you do not do it properly. If you’re wondering where to get help with debt, you’re in the right place.

If you are asking, “Can I cancel my debt review and what are the risks?”, Debtco Group can provide you with direction based on your exact circumstances. Let us get into more detail on this subject.

Cancelling Debt Review Before a Court Order

The good news is that, if the Magistrates Court has yet to issue you with a debt review order, you can apply to reject a debt counsellor’s finding of over-indebtedness. This is sometimes called “upliftment”, and is done under Section 87 of the National Credit Act. It is the easiest way to exit the process; however, you will have to prove your financial stability. If successful, then debt review can be cancelled.

Cancelling Debt Review through Rescission

Once a court has issued your debt restructuring order, cancelling debt review becomes much more difficult. You can apply to have the order rescinded under Section 36 of the Magistrates’ Courts Act. Remember, this is only possible in specific situations. These kinds of situations include material changes to your personal circumstances, court errors, a fraudulent application, or if the debt has been paid already.

Rescissions of debt review are not typically approved and require a strong case with evidence to back them up. Simply being able to afford your payments again is not a good enough reason to have the order set aside. The debt review process requires commitment to be successful. If you are in the position to see it through, you absolutely should.

Cancelling after Settling All Debts

Alternatively, if you’ve already received a court order, the best way out is to settle all debts included in your debt review, excluding long-term agreements like a home loan. You will need to prove that you’re able to manage those remaining commitments. Once everything’s been paid up, your debt counsellor can issue a clearance certificate. It will take a few months to restore your credit, but this will officially remove the debt review flag from your name.

Debt relief is possible – claim your free proposal from our qualified team. Make use of our FREE CALCULATOR to see how much you could save every month.