Consult a Debt Counsellor

It is vitally important to contact a Debt Counsellor in your city or town. Speak to the Debt Counsellor directly - do not go through a call cente as you will then talk to an agent. Contact Rywanet Debt Counsellors to set up a consultation.
Discuss your situation with the Debt Counsellor and then together with the Debt Counsellor, decide whether debt counselling is the solution for your particular situation.
Make sure you fully understand the implications of debt review as well as the costs involved .
You will then submit an application form to the Debt Counsellor.
Once you submitted the signed application form, you are under debt review and there is no easy way to get out from debt review
Step 1

Debt Counsellor send notice to all creditors

The Debt Counsellor send a notice of application (Form 17.1) to all your creditors notifying them of your application for debt review. From that moment you are protected under the NCA and a creditor may not start with legal proceedings in case of a defaulted account.
Step 2

Creditors provide details of all accounts

Your creditors will send to the Debt Counsellor details of all your accounts with them. This is called a Certificate of Balance (COB). The COB contains information like account number, outstanding balance, interest rate, date of inception, monthly installment and linked insurance.
Step 3

The Debt Counsellor do a financial assessment

The Debt Counsellor will do a financial assessment to determine if you are over - indebted, based on the Income and Expenditure as provided by you during the application in Step 1. If you are over - indebted, the Debt Counsellor will then generate a proposed repayment plan to settle all your short term credit agreements, including vehicle finance. This repayment plan is based on task team agreements reached in the Credit Industry Forum (CIF)
Step 4

The Debt Counsellor contact you to discuss the repayment plan

The Debt Counsellor must discuss the payment plan in detail with you, including the applicable debt counselling fees. If you accept the payment plan, the Debt Counsellor sends a notice (Form 17.2) to all your creditors that you were accepted under debt review.
Step 5

The Debt Counsellor send the proposed payment plan to all creditors

The Debt Counsellor also send the proposed payment plan (Proposal) to all your creditors. The creditors will assess the payment plan and may then either accept the proposal, reject it completely or make a counter offer.
Step 6

The Debt Counsellor file the application to court

The NCA requires that a debt review application must be filed to court within 60 business days after you applied for debt review. Rywanet Debt Counsellors make use of an Attorney to draft the application and file it to court for a set down date.
Step 7

Debt Review application endorced as Court Order

A Magistrate will scrutinize the debt review application for fairness. Creditors who rejected the proposal of the Debt Counsellor may oppose the application in court and the Magistrate will decide the outcome. Once the application is approved by the Magistrate, it will become an order of the court. All creditors must then reschedule your payments as per the court order. The court order is a two - sided sword: it protects the creditor on the one dide and the applicant on the other side.
If the debt review payments are not made in line with the court order, the creditor has the right to terminate the debt review and the credit agreement will revert back to its oringinal status.
It is therefor of utmost importance that payments be maintained in line with the court order.
Step 8

Clearance Certificate issued once all short term debt are paid up

Once all the short term debts, including vehicle finance, are paid up, the Debt Counsellor issue a Clearance Certificate (Form 19) whereby the debt review flag listed on the ITC's, will be removed from your profile.
A home loan may continue be paid under the debt review.
Only your Debt Counsellor on record may issue a Clearance Certificate - be aware of scrupulous advertisements promising to remove your debt review flag.
Step 9