DEBT REVIEW
Debt Counselling Process
There are basically 3 steps to debt counselling:
Step 1: The consumer goes to a registered Debt Counsellor, who will assist by determining if the consumer is over-indebted. This is called the Debt Review process.
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Step 2: If the consumer is found to be over-indebted, the Debt Counsellor will negotiate with the consumer’s Credit Providers for lower instalments over a longer term. This is called restructuring of debt.
Step 3: The Debt Counsellor will take the new agreements to court, where the court will determine how much money the consumer needs for basic necessities and what amount is left for debt repayments. The court will then grant consent that the Debt Restructuring Order is granted and therefore placing the consumer under Debt Counselling.
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The amount that the consumer needs to pay his Credit Providers will be paid by the consumer to a Payment Distribution Agent;
who will then pay each Credit Provider what is due to them;
as per the Debt Counselling order agreement.
with or without assets.
The client will stay under Debt Counselling until he has completed the repayment of debt as per the new agreement and the consumer will not be able to get credit whilst under Debt Counselling.
