Struggling to pay your debts?
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Our Debt Counsellors could solve your debt problems.
Many of us cannot live without credit like credit cards, clothing accounts, and loans. The availability and use of this credit (as well as the increase in interest and fees) and a failure to budget sometimes gets out of control resulting in over-indebtedness. If you are over-indebted, you may apply for Debt Counselling in terms of the National Credit Act.
What is Debt Counselling?
It is when you apply to a registered Debt Counsellor to request the restructuring of your debt, as you are unable to pay all your obligations under all your credit agreements. When you are over-committed, it gives you a second chance to repay your debt. Over-indebtedness does not result in the debt being written off, but being restructured.
Who can apply for a LegalWise debt review?
- You can only apply if you are an individual. Juristic persons (companies) as debtors may NOT apply for Debt Counselling.
- The debt review process is only available to you if you are over-indebted and have an income.
- Couples who are married in community of property must apply jointly for debt review.
- Couples who are married out of community of property can apply jointly if they have a joint debt.
- Pensioners can also apply for debt review as a pension is an income.
How does the LegalWise debt review process work?
- Upon approaching a Legal Counsellor, they will determine if you are over-indebted. If there is a likelihood that you are over-indebted, the matter is referred to our Debt Counselling department.
- Our Debt Counsellor takes the final decision on whether you are over-indebted – the Debt Counsellor may agree or disagree with the Legal Counsellor.
- The Debt Counsellor will decide on 1 of 2 outcomes:
- That you are not over-indebted. The application is rejected but you may go to a Magistrate's Court and apply for an order to be declared over-indebted.
- That you are over-indebted. The Debt Counsellor then recommends to the Magistrate's Court to make an appropriate order such as rescheduling your monthly payments to your creditors. Your creditors will be notified of this conclusion through a legal notice. This notice will give confirmation of your over-indebtedness and the new repayment proposal will be sent to your creditors. It gives your creditors peace of mind that you will keep to the new arrangement to pay each month and not skip or short pay on monthly repayments. This process is finalised as soon as the Magistrate makes the debt review application an order of court.
Why use LegalWise's Debt Counsellor?
- Our registered Debt Counsellor corresponds with and is likely to get a positive response from your creditors when it comes to negotiating repayments, as opposed to you approaching your creditors.
- Once we have made an application for debt review, credit providers cannot attach any of your assets or take any further legal action against you until a decision is finalised. We ensure your credit providers follow and adhere to the correct procedure.
- Repayment of your debt obligations are made through a payment distribution agency – an independent third party who monitors the repayments from you to your creditors.
- Our Debt Counsellor will advise you on ways to manage your living expenses by drafting a budget for you and will set aside a certain amount of income for your necessities such as food, school fees, transport costs etc, and the remainder of the money is left to pay your debts.
Our LegalWise Branches render Debt Counselling services to its Members and Non-Members. Please contact your nearest Branch for assistance or SMS DEBT to 43039.
SMS charged at standard rates.
*Terms and conditions apply.