Is debt review a criminal record?

Published by The National Debt Review Center on

No, being under debt review is not a criminal record. It’s important to understand that debt review is a legal process designed to assist individuals who are struggling with significant debt. Its primary aim is to help individuals manage their debts more effectively and avoid the severe consequences of insolvency.

Debt review is a proactive step taken by individuals who recognize that they are in financial trouble and need assistance to manage their debts. It’s a sign of taking responsibility for one’s financial situation, not a criminal act.

However, it’s crucial to note that while debt review is not a criminal record, it does have implications for your credit record. When you are under debt review, this status is noted on your credit report. This notation can affect your ability to access further credit while you are under review.

According to Section 161 of the National Credit Act, if a person is convicted of an offence in terms of this Act, they are liable to penalties:

  • In the case of a contravention of section 160(1), the person is liable to a fine or to imprisonment for a period not exceeding 10 years, or to both a fine and imprisonment.
  • In any other case, the person is liable to a fine or to imprisonment for a period not exceeding 12 months, or to both a fine and imprisonment.

These penalties underscore the importance of adhering to the terms of a debt review order. It’s crucial to understand the legal obligations when under debt review and to comply with the agreed-upon repayment plan. If you’re struggling to meet your obligations under debt review, it’s advisable to speak with your debt counsellor.

Got More Questions? We have gathered the most frequently asked questions about exiting debt review here.

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The National Debt Review Center

The National Debt Review Center

Welcome to The National Debt Review Center, where financial stability and integrity are our guiding principles. We strive to deliver the utmost best in customer service & act with the highest standards of integrity. We are South Africa's best Debt Counselling & Debt Review Removal Company. NCR Registration Number - NCRDC3106

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