Being under debt review can be a lifeline for those struggling with overwhelming debt, but once your finances are back on track, you may be wondering how to remove debt review and restore your financial independence. The process isn’t automatic, and understanding the correct steps can help you exit debt review efficiently and legally.
Debt review is legally binding once initiated. However, if you can prove in court that you are no longer over-indebted, you may apply for an early exit.
What Is Debt Review?
Debt review is a legal process introduced by the National Credit Act (NCA) to assist over-indebted South Africans in restructuring their repayments. A registered debt counsellor negotiates with creditors to reduce monthly payments, allowing consumers to manage their debt without legal action being taken against them. However, while under debt review, individuals cannot take on new credit.
When Can You Remove Debt Review?
Debt review remains in place until you have repaid all your debts (excluding your home loan, which must simply be up to date). To exit debt review, you must meet one of the following conditions:
You have paid all your debt in full – Once your outstanding balances are cleared, you qualify for removal.
You can prove you are no longer over-indebted – If your financial situation has significantly improved, a court can declare that you no longer require debt review.
Steps to Remove Debt Review
1. Obtain a Clearance Certificate
Once your debt is fully paid (except your home loan, if applicable), your debt counsellor must issue a clearance certificate. This document confirms that you have met all obligations under debt review and that you can be removed from the process.
2. Notify Credit Bureaux
Your debt counsellor must inform all major credit bureaux, such as Experian and TransUnion, to update your credit profile. The debt review status will then be removed from your credit record, restoring your ability to apply for credit again.
3. Check Your Credit Report
Once your debt review flag has been removed, download your credit report to verify that the update has been processed correctly. If there are errors, follow up with the relevant credit bureau or your debt counsellor.
Here are a few links to free credit reports from various credit bureaus in South Africa:
- TransUnion – You can obtain your free credit report by visiting their website and registering.
- Experian – To request your free credit report, visit their site. They often have promotions for free reports.
- Compuscan – You can request your free credit report once a year via Compuscan’s credit services page.
- Credit Ombud – While the Credit Ombud doesn’t provide credit reports, they can assist with disputes and accessing information about your report. You can learn more on their website.
Make sure to follow the instructions on each site to access your credit report and check for any updates.. If there are errors, follow up with the relevant credit bureau or your debt counsellor.
Can You Remove Debt Review Early?
In most cases, debt review is legally binding once initiated. However, if you can prove in court that you are no longer over-indebted, you may apply for an early exit. This requires a formal court application and legal representation.
Avoid Debt Review Scams
Beware of companies that promise instant debt review removal for a fee. The only legitimate way to exit debt review is by either paying off your debt or obtaining a court order stating that you are no longer over-indebted.
Frequently Asked Questions (FAQs)
Once you have paid all your debt, the process of obtaining a clearance certificate and updating your credit record can take up to 30 days, depending on the credit bureaux.
Yes, but it may take some time for your credit score to recover. It is advisable to build a positive credit history before applying for new credit.
If your debt counsellor does not assist with your clearance certificate, you can report them to the National Credit Regulator (NCR) for further action.
If you have repaid all your debt, legal assistance is not necessary. However, if you seek early removal, a court application is required, and legal representation may be beneficial.
Your credit profile will be updated, but improving your score requires responsible financial behaviour over time, such as making timely payments and maintaining low credit utilisation.
Final Thoughts
Debt review is a valuable tool for regaining financial stability, but once your obligations are met, removing the debt review status is essential for rebuilding your credit profile. By following the correct legal steps and working with a registered debt counsellor, you can successfully exit debt review and regain financial freedom.
WHO ARE WE AT VHT
VHT Attorneys is a boutique law firm with a large vision. We provide innovative legal solutions with a renowned standard of integrity and confidentiality.
We help our clients:
- Remove Debt Review Status
- Commercial & Corporate Law
- Labour Law
- Dispute Resolution / Litigation
3 Comments
Shermone Isaacs
Good day
Please help me remove my name under debt review
Francois
Hi Shermone,
Thanks for your comment!
Please expect an email from us soon.
Have a great day,
VHT Team
Tina Du Toit
Hi
I have paid all my debts; I need help to clear my name please