The Role of Lawyers that Remove Debt Review
The Role of Lawyers that Remove Debt Review in South Africa
The National Debt Review Center
The Role of Lawyers that Remove Debt Review in South Africa
Debt review can be a lifeline for managing overwhelming debt, but there comes a time when you might want to exit the program. This article explores the importance of a lawyer working alongside a debt counsellor for a successful debt review removal application in South Africa.
Can a lawyer remove me from debt review?
A lawyer alone cannot remove you from debt review. While a lawyer offers legal expertise in court appearances and drafting necessary documents for a successful debt review removal order, exiting debt review typically involves working with a registered debt counsellor. A debt counsellor assists with the initial steps, such as conducting a final affordability assessment and gathering required documents from the client & creditors and may also help draft legal documents. After obtaining the order, the debt counsellor play a crucial role in updating the National Credit Regulator (NCR), credit bureaus, and creditors.
Why Consider Debt Review Removal?
Debt review offers a structured approach to paying off creditors, but it also comes with limitations. Here are some reasons you might consider exiting the program:
- Wrongfully listed under debt review: Being wrongfully listed under debt review occurs when one is mistakenly placed under debt review, for instance, being assured that the debt review process is a savings plan or a form of debt consolidation.
- Improved Financial Situation: If your financial circumstances have improved and you can comfortably manage your debts on your own, debt review removal might be a good option.
Debt review restricts access to credit. Once your debts are under control, you might want the freedom to apply for new credit products.
The Most Effective Method for Debt Review Removal
Working with a lawyer and a registered debt counsellor offers several advantages:
- A lawyer’s legal knowledge combined with the debt counsellors inside knowledge significantly improves the chances of a successful removal application.
- The debt counsellor can appear on your behalf without the representation to save costs and can also provide the lawyer with all the necessary documentation, saving you time and effort. (the debt counsellor plays a crucial role in updating the National Credit Regulator (NCR), credit bureaus, and creditors).
- Having both professionals working for you ensures a comprehensive approach, giving you peace of mind throughout the process.
Finding the Right Debt Review Removal Team in South Africa
Several reputable law firms and debt counselling companies operate in South Africa. Here’s what to look for when choosing your team:
- Experience in Debt Review Removal: Look for a lawyer with a proven track record and a debt counsellor with a deep understanding of debt review removal procedures.
- Ensure both professionals value teamwork and are comfortable working together on your case.
- Discuss fees upfront with both the lawyer and debt counsellor to get a clear understanding of the total cost.
- It’s important to discuss timeframes upfront to be informed. Top attorneys and the best debt counselors often offer a success guarantee or your money back, with a typical timeframe of 3 to 6 months for the removal of your name from debt review. They will also keep you updated on any delays.
NDRC Debt Review Removal Real Reviews
Frequently Asked Questions
How much does it cost to remove debt review?
The cost of debt review removal through The National Debt Review Center is set at R8550.00 vat exclusive, with an option to pay this amount over 2 or 3 months.
Is debt review removal legal in South Africa?
It is legal if a registered Debt Counsellor together with an admitted attorney does it on your behalf. The attorney is there for court appearances and drafting and the debt counsellor deals with the updates and the removal of the listing.
How do I get out of debt review without paying?
1. If you are doing it yourself. Removing debt review typically requires professional assistance, especially if it involves legal proceedings or negotiations with creditors.
If there are issues with your debt counsellor or if they’re no longer practicing, you may need to seek assistance from the NCR or another registered debt counsellor.
2. If you have settled all of your accounts and you do not owe the debt counsellor any fees. Your clearance certificate will be issued at no cost.
3. If you wish to withdraw your debt review application before being declared over-indebted and have already paid the debt counsellor the R350.00 application and administration fee, the withdrawal will be processed at no additional cost.
4. If you have been wrongfully listed and you file a formal complaint with the National Credit Regulator, and it concludes after investigation that you were indeed wrongfully listed, then the regulator will assist with updating your record at no cost.
How many years does it take to be removed from debt review?
1. Removal of Debt Review through the courts typically takes 3-6 months, with NCR updates taking 3-7 days.
2. Rejections of Debt Review Removal prior to being declared overindebted generally take three days.
3. Issuance of Debt Review Clearance Certificates takes 7 days.
4. Updates regarding a deceased consumer take 3 days.
5. Updates following consumer sequestration require 7 business days.
See The Relevant Timelines for Each Debt Review Removal Scenario
It’s important to understand that credit bureaus typically update your credit profile monthly. Therefore, it’s crucial to allow at least 21 business days before initiating a dispute.
How does the debt review removal process work?
- The first step is to complete the application for debt review removal form. The client initiates the process by either booking an appointment or completing an online application form. The application form can either be filled out online or downloaded and submitted after completion.
- The second step is to assess your application. After receiving the application, it is thoroughly assessed to determine the likelihood of a successful debt review removal. This involves reviewing your current financial status, ability to service your current debt obligations, debt review history and other contributing factors.
- Once the application is deemed potentially successful, a legal pack is prepared. This involves gathering all necessary documentation from relevant stakeholders, which may include previous debt counsellors, credit providers, client and other legal entities.
- The complete application/legal pack, is then submitted to a court. The purpose is to obtain a court order declaring that you are no longer over-indebted.
- If the court finds the application valid and it meets all criteria, the order declaring you no longer over-indebted or rejection thereof of the previous application will be granted.
- Once the court order is granted, the documentation is submitted to the NCR for updates and verification.
- After the NCR updates their records to reflect your new status, they notify all credit bureaus of the change and request us to do the same.
- Your record from the bureaus will be updated within 21 business days after our submissions and the debt review listing will be successfully removed from your credit profile, thus restoring your creditworthiness.
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