Who Can Enter a Debt Review Program?
If you are over-indebted or having financial problems, a debt review program will allow you to rehabilitate your finances, by enabling you to afford your monthly debt repayments, with a view to settling your debts and receiving a clearance certificate that wipes your credit record clean.
In order to qualify for a debt review program, you must be permanently employed and earning an income. Moreover, you must adhere to the rule of no access to loans or credit cards, while you are undergoing debt review, as doing so will lead to debt review termination.
What Can My Debt Counsellor Do For Me?
As a first line of defence, your debt counsellor will go through all of your credit agreements with a fine-toothed comb to determine whether or not your over-indebtedness can be attributed to reckless lending.
What this means is that your credit provider is a predatory lender, as they have granted you reckless credit. Accordingly, you couldn’t afford your debt repayments, without struggling to cover your basic needs.
Your credit provider is required by law to conduct a thorough affordability assessment before approving you for credit. As part of NDA’s debt review program, one of the experienced attorneys from our Reckless Lending department will act as your appointed legal counsel. Thus, they’ll approach the court on your behalf to have your debts written off under the reckless contract.
How Does a Debt Review Program Work?
If your over-indebtedness or financial problems were not the result of reckless lending, your debt counsellor will approach your credit providers to see if they can’t negotiate a settlement directly. In which case, the matter would not have to go to court.
As follows, a new agreement would be drawn up and a Magistrate would simply oversee the process, to ensure the proper procedure is followed.
On the other hand, if your credit providers refuse to settle directly or reject the new agreement, your debt counsellor will have to take the matter to court and request that they declare the new agreement as an official order, enforceable by law.
This order alters the original credit agreement, allowing you to pay lower monthly instalments and interest rates, so you can afford to maintain a normal standard of living, as well as pay of your debts at the same time.