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    Legal Protection

    How your assets and rights are protected

    19 Questions

    What legal protection does debt counselling provide?

    Once you apply for debt counselling, you receive immediate legal protection under Section 86 of the National Credit Act.

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    How do you protect my assets (home/vehicle)?

    Asset protection is one of the core purposes of debt counselling.

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    Will I lose my assets while under debt review?

    No, while you are under debt review and continue to pay your restructured instalment, credit providers are prohibited from taking further legal action...

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    Can I enter debt counselling if I have already been summonsed or handed over?

    You can still apply for debt counselling to protect the rest of your accounts if you have already been summonsed on some accounts.

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    What is a Section 129 notice vs letter of demand?

    These are different stages of the collection process with different implications:

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    What is sequestration vs debt review vs administration?

    These are three different legal processes for dealing with debt:

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    What if I am under debt counselling and my credit providers contact me directly?

    Your creditors should deal with us while you are under debt review. If your creditors contact you directly:

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    How am I protected while under debt review?

    We obtain a court order or consent order on your behalf which replaces all your credit agreements with the restructured amounts.

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    What is reckless lending and can it help me?

    Reckless lending occurs when a credit provider grants credit without proper affordability assessments.

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    Can creditors garnish my wages during debt review?

    No, creditors cannot issue new garnishee orders (emoluments attachment orders) against you once you are under debt review.

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    What is a court order in debt review?

    A court order in debt review is a legally binding order issued by the Magistrate's Court that formalises your restructured payment plan.

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    What happens if a creditor ignores my debt review status?

    If a creditor ignores your debt review status and takes action against you, they are acting unlawfully:

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    What are emoluments attachment orders (garnishee orders)?

    An emoluments attachment order (EAO), commonly called a garnishee order, is a court order that allows a creditor to deduct money directly from your sa...

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    What do I do if I am a victim of fraud and my credit record has been breached?

    If you suspect fraud or identity theft affecting your credit record:

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    What to do if you are experiencing problems with a credit bureau?

    If you have issues with incorrect information on your credit report:

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    What happens if creditors don't accept my repayment plan?

    If one or more creditors reject your proposed repayment plan, we can still proceed:

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    Does my marital status affect the debt counselling process?

    Yes, your marital status has important implications for debt counselling:

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    Can I still rent property if I am under debt review?

    Yes, you can still rent property while under debt review, though some landlords may conduct credit checks.

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    Can my employer fire me for being under debt review?

    No, your employer CANNOT legally terminate your employment simply because you are under debt review. This would be considered unfair dismissal under S...

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    Still Have Questions?

    Our NCR-registered debt counsellors are ready to help. Get a free, confidential assessment today.