Debt review (debt counselling) explained

Who can apply

You can apply if you are over-indebted: you are unlikely to be able to pay all your credit agreements on time, judged against your income and basic expenses (section 79). If you are married in community of property, you and your spouse apply together. An agreement the credit provider has already started enforcing under section 130 when you apply is not included (section 86(2)).

Step by step

1. Apply. You complete an application (Form 16) with a debt counsellor registered with the NCR. The counsellor must explain the process, its consequences and all fees before you sign.
2. Notification. Within 5 business days the counsellor notifies your credit providers and the credit bureaus (Form 17.1).
3. Certificates of balance. Each credit provider sends a certificate of balance within 5 business days.
4. Assessment. The counsellor decides whether you are over-indebted and tells everyone the outcome (Form 17.2).
5. Proposal and order. If you are, the counsellor proposes a restructuring. If all credit providers agree, it goes to the National Consumer Tribunal for a consent order; if not, to the Magistrate's Court.
6. Payments. You pay the restructured amounts, directly or through a payment distribution agent registered with the NCR.
7. Clearance. When the restructured debts are paid (or only an up-to-date home loan remains), the counsellor issues a clearance certificate and the flag is removed.

The 60 business days

The NCR says the application, negotiation and referral should be completed within 60 business days of applying. If you are in default, a credit provider may give notice to end the review for that agreement once 60 business days have passed, unless the matter is already before the court or Tribunal (section 86(10)).

Complaints about a debt counsellor

The NCR handles complaints about debt counsellors: call 0860 627 627 or email [email protected]. See how to complain to the NCR, and the NCR's own debt counselling page and register of debt counsellors.