If you stop making your debt review instalments, the consequences can undo the protection that debt review provides. Debt review payment is not optional once the plan is in place.
What happens when you miss debt review payments:
• Your debt counsellor will contact you to establish the reason for non-payment and discuss options.
• If payments are not resumed, the PDA stops distributing payments to credit providers and notifies your debt counsellor.
• Credit providers who were receiving restructured payments may give you formal notice of breach and allow a period to remedy it, typically 20 business days.
• If not remedied, credit providers can apply to terminate the debt review arrangement for their specific credit agreement under Section 88(3)(b)(ii) of the NCA.
• Once a credit provider has validly terminated debt review for their account, they can issue summons, apply for judgment, and proceed to repossession or garnishee orders.
• Your vehicle or home can be repossessed by the relevant credit provider if the credit agreement securing those assets is terminated from debt review.
What to do if you cannot afford your debt review payments:
• Contact your debt counsellor immediately. A revised restructuring proposal may be possible if your income has decreased.
• If your income has increased and you are struggling for a different reason, consider whether debt review removal is now appropriate.
• Contact NDRC at 041 012 5036 or [email protected]. We assess your current situation and advise on the best course of action, including whether amendment of the current plan, emergency protection, or formal removal is the right path.
Do not stop paying and assume the situation will resolve itself. The longer missed payments go unaddressed, the worse the consequences become.