Outstanding Fees?
TITLE: Does Debt Review Removal Cover Outstanding Fees? | NDRC | META: Debt review removal does not settle or write off outstanding debt or debt counselling fees. Learn what happens to outstanding amounts when you exit.
No. Debt review removal does not settle or write off any outstanding debts or debt counselling fees. Removing the debt review flag restores your right to apply for credit and terminates the formal debt review process. It does not clear what you owe to creditors or to your previous debt counsellor.
What happens to your actual outstanding debts depends on each individual account:
• Accounts settled under the debt review plan: cleared. No further amounts are owed.
• Accounts still outstanding at the time of removal: you are responsible for resuming original contractual payments to each creditor. Creditors may demand the full original contractual amount and may take legal action if you do not pay.
• Accounts that have legally prescribed: if an account has gone unpaid for more than 3 years without summons being issued, the debt may have prescribed under the Prescription Act and is no longer legally enforceable.
Outstanding debt counselling fees work differently. If you owe your debt counsellor arrear after-care fees, those fees do not disappear on removal. Your debt counsellor may pursue these through normal civil debt collection processes.
NDRC's fees for the removal service cover the professional and legal work involved in obtaining the court order and updating your status. They are separate from any amounts owed to your previous debt counsellor or to your creditors.