The debt counselling process in South Africa is a legal process that helps consumers who are over-indebted to get back on their feet financially. The process is overseen by the National Credit Regulator (NCR) and involves a number of steps, including:

  1. Debt assessment: The first step is to have a debt assessment conducted by a registered debt counsellor. This will involve providing the debt counsellor with your income, expenses, and debts. The debt counsellor will then use this information to determine if you are over-indebted.
  2. Notification of creditors: Once the debt counsellor has determined that you are over-indebted, they will notify your creditors of your application for debt counselling. This will give your creditors an opportunity to object to the application.
  3. Over-indebtedness notice: If your creditors do not object to your application, the debt counsellor will issue you with an over-indebtedness notice. This notice will confirm that you are over-indebted and that you are entering into debt counselling.
  4. Repayment plan: The next step is to develop a repayment plan with your debt counsellor. This plan will outline how you will repay your debts over a period of time. The plan must be approved by your creditors.
  5. Court order: Once the repayment plan has been approved by your creditors, the debt counsellor will apply for a court order to make the plan legally binding. This is the final step in the debt counselling process.
The Debt Counselling Process
The Debt Counselling Process

Once the court order has been granted, your creditors will be prevented from taking legal action against you for your debts. You will then be required to make payments to your debt counsellor in accordance with the repayment plan. The debt counsellor will then distribute these payments to your creditors.

Debt counselling can be a helpful way to get out of debt if you are over-indebted. However, it is important to note that it is not a quick fix. The debt counselling process can take several months or even years to complete. It is also important to make sure that you choose a reputable debt counsellor who is registered with the NCR.

CONTACT CONTROL DEBT –  A registered debt counsellor

 

Debt Counsellor George
Control Debt – Registered Debt Counsellor
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