What Happens to My Assets Under Debt Review?
Introduction:
Understanding the implications of debt review on your assets is crucial when you’re grappling with financial difficulties. In South Africa, the debt review process is designed to help individuals manage their debts effectively while protecting their assets. But what does this mean for you and your property? Let’s delve into the details.
Protection of Assets
One of the primary benefits of debt review is the protection of your assets. Contrary to common misconceptions, your assets are not automatically seized when you enter debt review. This process is designed to help you manage your debts while protecting your property. This means that you can continue to use your assets, such as your home and vehicle, as long as you adhere to the repayment plan established by your debt counsellor.
Role of a Debt Counsellor
A debt counsellor plays a pivotal role in the debt review process. They assess your financial situation and negotiate with your creditors on your behalf. The goal is to create a repayment plan that is affordable for you, which may involve restructuring your debts to lower your monthly payments. This is where DC Experts come in. With a team of experienced professionals, including registered debt counsellors and attorneys, DC Experts provide comprehensive support to individuals facing financial difficulties
Legal Protection
While under debt review, you are protected from legal action by creditors. This means they cannot take steps to enforce debt collection or repossession of your assets if you’re adhering to your repayment plan. This legal protection provides you with the peace of mind to focus on your financial recovery
Impact on Credit Record
Being under debt review will reflect on your credit record, and you may not obtain new credit during this period. However, it is a widely recognized process that shows you are taking steps to manage your debts responsibly.
Duration of Debt Review
The debt review process continues until all your debts are settled or until you are no longer over-indebted. The only exception is a mortgage/bond/home loan. If you’ve settled all your debt and only your mortgage remains, you are able to exit debt review with the assistance of your debt counsellor. Once you complete your repayment plan, your debt counsellor will issue a clearance certificate, which will remove the debt review flag and you’ll be able re-enter the credit market and restore your credit record. The duration of debt review can vary significantly based on several factors, including the amount of debt you have and your ability to make payments towards that debt. Generally, the process can last anywhere from 18 months to 5 years depending on your personal financial circumstances.
At DC Experts, we specialize in debt counselling services. Our team of experienced professionals are ready to assist you in managing your debt effectively. We offer comprehensive support, including financial advice and legal assistance related to debt matters.
So if you’re struggling with debt and considering debt review, don’t hesitate to reach out to us. We’re here to help you regain control of your finances. Submit your contact details below for someone to call you back. Let’s work together to secure your financial future.