Easy Guide to Debt Review Status Codes

Easy Guide to Debt Review Status Codes

Have you ever heard of debt review status codes? These are codes inputted into the debt help system that reflects where you are in the debt review process. They help creditors, bureaus, and consumers understand where they are in the debt review process and whether they should be granted credit.

As of March 2022, the codes are A, A1, B, C, D3, D4, F, F1, F2, and G.

  • A– You’ve applied for debt review and are being assessed
  • A1– You exited debt review before being declared over-indebted
  • B– You’ve been assessed as not over-indebted
  • C– You’ve been assessed as over-indebted
  • D3– Formal restructuring of your debt has started
  • D4– Formal debt restructuring of debt is completed and you’ve been granted a court order
  • F1– All your restructured debts have been paid except your bond
  • F2– All your restructured debts have been paid, including your bond
  • G– The Magistrate’s court took back your debt review order or you fought the debt review application and were declared not over-indebted
  • G1– The Magistrate’s court declared you not over-indebted
  • I– You’ve been declared deceased
  • J– You’ve been sequestered

Let’s discuss what these codes mean, how they might affect your credit, and how you can check which code is on your credit profile.

Debt Review Status Codes Explained

To properly understand debt review status codes, we have to place them in the context of the debt review process.

Application

When you first apply for debt review, you’ll have to complete Form 16. You list your assets, income, expenses, and debt here. Your debt counsellor uses this information to perform an affordability assessment. As soon as you hand in your Form 16, a profile for you is created on the debt help system, and code A is put on your profile.

Assessment

After an assessment is done, your debt counsellor will proclaim you are either over-indebted or not over-indebted. If you’re not over-indebted, they’ll complete a Form 17.2. If you are over-indebted, they’ll fill in a Form 17.2. If you exit debt review before this happens, a code A1 is entered into your profile.

If your debt counsellor hands in Form 17.2, code B is placed on your profile. Conversely, a declaration of over-indebtedness makes for a code C to be placed on your profile. Once you’ve been declared over-indebted, the debt rearrangement process starts. Your debt counsellor will ask the NCR to change your status code to D3.

Magistrate’s Ruling

Your debt counsellor will then approach the Magistrate’s court and submit your case: why they feel you are over-indebted and a list of the arrangements that have been made. A code D4 will be placed on your profile. If the Magistrate’s court feels you are not over-indebted, a code G1 is placed on your profile. While you’re paying off your debts, the Magistrate’s court has the right to rescind their court order, a code G is placed on your profile. The same applies should you become able to pay your debt as per your original credit agreement and are declared not over-indebted.

Debts Repaid

When you’ve paid off all outstanding payments except your bond, a code F1 is placed on your profile. If all your debts including your bond have been repaid, a code F2 is placed on your profile. You may request a clearance certificate in both of these cases.

Lastly, in the event of your death, a code I is placed on your profile. If you’ve declared insolvency (been sequestered), a code J is entered.

Debt review status codes

To check your debt review status code, we recommend getting a free credit check. The NCA mandates that each bureau provide you with one free credit report each year, so you’ll be able to check your status at least quarterly.

If you would like help formally restructuring your debts to gain lower debt repayments and interest, legal protection, budgeting help, the ability to retain your assets, or a reckless lending assessment, contact Debtco Group. We would love to help you on your way to financial freedom!

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