Cancelling debt review through the proper legal process has real and significant implications.
Loss of legal protection from creditors
Under Section 88(3) of the NCA, while you are under debt review and paying as per the restructured plan, creditors may not take legal action to enforce credit agreements. Once debt review is cancelled by court order, this protection ends immediately. Creditors can issue summons, obtain judgments, and proceed to execution against assets for any outstanding amounts.
Obligation to resume original contractual payments
The court application requires you to demonstrate you can afford the original monthly contractual amounts. Once the order is granted, you are expected to make those payments. If you cannot sustain them, you will default and face creditor action without the protection of debt review.
Credit score impact during the transition period
While the debt review flag is being removed, there is a transition period. Once fully removed, your ability to apply for credit is restored. Credit score recovery depends on your payment history during debt review and the current state of your accounts.
Outstanding balances remain payable
Cancelling debt review does not write off or reduce what you owe to creditors. Each outstanding account must still be paid according to agreed or original terms. Creditors may negotiate new payment arrangements after removal, but they are not obliged to accept less than the contractual amount.
Positive outcome of successful removal
Successfully exiting debt review restores your right to apply for credit under Section 88 of the NCA, removes the flag from credit bureaus, and allows you to negotiate directly with creditors without the restrictions of a formal debt review plan.