Debt Review If I Face Further Difficulties?
TITLE: Can I Re-Enter Debt Review After Partial Exit With Home Loan? | NDRC | META: Yes, you can re-apply for debt review if financial difficulties recur after exiting. Eligibility depends on your current financial circumstances at the time.
Yes. Re-entering debt review is legally possible if you face financial difficulties after a partial exit. The NCA does not prohibit a consumer from applying for debt review more than once. Each application is assessed on your current financial circumstances at the time of application.
In the scenario of a Section 71 partial clearance, where all accounts are settled except a current home loan, you exit debt review with the home loan continuing under its restructured terms. If your financial circumstances subsequently deteriorate and you struggle to meet all your financial obligations, you can apply for debt review again.
Practical considerations for re-entry:
• The home loan that was excluded from your previous clearance certificate will be assessed as part of the new debt review application along with any new accounts taken on since exiting.
• Any new credit accounts entered into after your debt review removal will be included in the new application.
• Credit providers may be more cautious about negotiations if you have previously been under debt review and exited, particularly if you enter again with similar or larger debt levels.
The right approach is to avoid re-entry by maintaining a budget and financial discipline after removal. NDRC provides post-removal financial counselling and budgeting support to help clients maintain their improved financial position. Contact us at [email protected] to discuss what support is available.