Once the repayment plan is finalized, the individual makes a single monthly payment to a Payment Distribution Agency (PDA), which distributes the funds to their creditors in accordance with the repayment plan. The individual's creditors are not allowed to take legal action against them while they are under debt review, provided they adhere to the repayment plan.
Once all debts included in the repayment plan have been paid in full, the individual receives a clearance certificate from their debt counsellor, and they become debt-free. Debt review allows individuals to get out of debt in an affordable manner and provides a safer alternative to getting a judgement on their name or surrendering their assets if they are unable to pay.
If you are over-indebted, you can approach a debt counsellor registered with the National Credit Regulator (NCR) to assist you in legally reducing your monthly instalments through debt review.
The process involves an assessment of the individual's financial situation by a debt counsellor, who reviews their income, expenses, and debts to determine whether they are over-indebted and qualify for debt review. If the individual is deemed to be over-indebted, the debt counsellor helps them complete an application for debt review that includes a proposed repayment plan outlining how the individual intends to repay their debts over a longer period.
The debt counsellor negotiates with the individual's creditors to obtain their agreement to the proposed repayment plan, which becomes legally binding on all parties once all creditors have agreed.
