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 You can apply to have the order rescinded under Section 36 of the Magistrates’ Courts Act.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.

Can you cancel debt review? Yes, but timing and process matter

You are not locked into debt review forever, but how you can leave depends on where you are in the process. Cancelling for the right reasons can be sensible; cancelling to escape the rules usually backfires. Here is what you need to know.

Before a court order

If your debt review has not yet been made an order of the court, you can withdraw. A registered debt counsellor issues the necessary paperwork and notifies your credit providers and the bureaus so the debt review flag is removed. Bear in mind that once you leave, the legal protection stops and your creditors can resume normal collection on the full instalments.

After a court order

Once your debt review is a court order, you generally cannot simply cancel it, you would need a court application to be declared no longer over-indebted, or you complete the process and receive your clearance certificate. This is deliberate: the court order is what legally protects you, so it cannot be switched off on a whim.

The real risks of cancelling early

• You lose legal protection. Creditors can immediately pursue full instalments, interest, and legal action on accounts that were protected.
• Your repayments jump back up. The reduced instalments negotiated under review fall away.
• You could face repossession again. The protection over your home and car ends.
• You may end up worse off. Many people who cancel simply return to the debt spiral they were escaping.

A better first step: talk it through

People usually want to cancel because the monthly payment feels too high, or their income has changed. Often the plan can be reviewed and adjusted instead of cancelled, keeping your protection in place. Before you do anything, speak to your debt counsellor.

Frequently asked questions

Will cancelling remove the debt review flag immediately?
If you withdraw before a court order, the flag is removed through the correct process. After a court order, you need clearance or a court application. See our guide to debt review status codes.

Is it better to finish or cancel?
For most genuinely over-indebted people, finishing the process and getting a clearance certificate is the stronger outcome, but every situation is different.

Thinking about leaving debt review? Get honest advice first.

Debtco Group (NCRDC 3277) will tell you honestly whether cancelling or adjusting your plan is the better move. Call a registered debt counsellor on 021 007 1422 or request your free, no-obligation assessment.