DEBT COUNSELLING PROCESS 

The consumer apply for Debt Review with the help of a Debt Counsellor. The Debt Counsellor will fully explain the full Debt Review process as well as advise you upfront of the fees payable.

 

We will require from you a copy of your ID Book, pay slip and statements received in the mail from your Credit Provider/s.(proof of short term insurance required should you have vehicle debt)

 

Within 5 business days  all Credit Providers are notified per form 17.1 that the consumer has applied for Debt Review as well as requesting certain information required to enable the DebtCounsellor to prepare a new repayment proposal. The Debt Review application is now in process. No legal action from Credit Providers are now possible. (Excludes credit agreements where Credit Providers have already started with a legal process prior to application for Debt Review. However we will through the assistance of our Associate Attorney enter into negotiations to resolve this aspect to the benefit of all parties)

 

The Debt Counsellor will now prepare a debt restructuring proposal to the Credit Providers and prepare the court documents as an application will be made to court to formalize the new debt repayments. Go to CASE STUDIES to see how we have reduced the monthly payments.

 

Arrangements will also then be made with a Payment Distribution Agency to start the distribution to the Credit Providers.

 

FEE & PAYMENT STRUCTURE

Initially there will be an application fee of R50.00 and an administration fee of R 300.00. These fees will be paid when applicant summits his Form 16 (the formal application) together with supporting documents.

 

A once off Debt Counsellor Professional Fee equal to the lesser of the first instalment of the debt re-arrangement plan up to a maximum of R 8 000(single) or R 9 000-00(joint) will apply. You will be responsible for paying this fee at the end of the month in which you have applied.

 

A monthly administration fee will be payable from the 2nd payment calculated at 5% of the available amount up to a maximum of R 450-00.

 

Legal fees: According to Section 86 (8) of the National Credit Act, a Debt Counsellor must record accepted proposals in the form of a Consent Order for signature by the Magistrate Court / Consumer Tribunal. If all credit providers do not accept the proposal, the matter must be referred to the Magistrate's Court with the Debt Counsellor's recommendation. The cost of applying to the Magistrate's Court will be determined upon your application as the fees are set by the Attorney bringing the application on your behalf. This fee will be paid from your salary at the end of the 2nd month.

 

Partial payments to the Credit Providers will then commence as from the end of the 2nd month.