Debt?
TITLE: Can I Remove Debt Review Without Paying All My Debt? | NDRC | META: Yes, you can remove debt review without paying all your debt if your financial circumstances have improved. A court application under Section 87 of the NCA is required.
Yes, you can apply to have the debt review flag removed even if you have not finished paying all your debts. This is one of the most misunderstood aspects of the removal process.
Section 87(1) of the National Credit Act 34 of 2005 allows a consumer to present their original debt restructuring proposal to a Magistrate together with evidence of improved financial circumstances. If the Magistrate is satisfied that you are no longer over-indebted, meaning you can afford to resume paying original contractual monthly amounts, the court rejects the debt review proposal and the process is terminated.
For the application to succeed, you need to show:
• Your current income covers living expenses and original monthly contractual payments to all creditors.
• Proof of income via recent payslips, bank statements, or other earnings evidence.
• You understand that creditors may demand the original contractual amounts once debt review is terminated, and may take legal action if you fail to pay.
If any accounts have prescribed, meaning no payments were made and no summons was issued for more than 3 years, those accounts are legally unenforceable and excluded from the affordability calculation. Your debt counsellor assesses prescription status during the free consultation.
If your accounts are not settled and your finances have not improved significantly, a court application is unlikely to succeed. Continuing under debt review and paying off debts to qualify for a Clearance Certificate remains the appropriate route in that case.