• A Consumer who believes that he is over-indebted, will apply to a debt counsellor for debt review.
  • The debt counsellor will, either himself or via his assistant(s), obtain such information, inclusive of documentary proof, relevant to the Consumer’s financial circumstances.
  • The Consumer will be required to sign an application form and related documentation and pay a registration fee of R 50,00 (excluding Vat).
  • The debt counsellor will thereafter register the application with the National Credit Regulator and from which moment the consumer will enjoy absolute protection from his creditors.
  • In addition, the debt counsellor will notify all the Consumer’s credit providers, in writing, of the fact that the Consumer has applied for debt review.
  • Once the Consumer’s application for debt review has been registered as aforesaid, the debt review process must be finalised within 60 business days thereafter.
  • During this 60 business day period, no credit provider can take any further steps in collecting moneys from the Consumer in respect of credit agreements with regard to which no summons has yet been issued – this is known as the period of debt freezing.
  • During this period the debt counsellor will determine if the Consumer is over indebted or not.
  • Should the debt counsellor conclude that the Consumer is not over-indebted, then the application for debt review will unfortunately be rejected.
  • Should the debt counsellor conclude that the Consumer is indeed over-indebted, the debt counsellor will notify the Consumer’s credit providers accordingly.
  • Thereafter, the debt counsellor will, with reference to the Consumer’s required living expenses, prepare a debt re-arrangement payment proposal and which will be forwarded to the Consumer’s credit providers for their consideration.
  • The said proposal effectively entails that the debt counsellor, with due regard to the Consumer’s monthly disposable income and required living expenses, determines how much money the Consumer has available with which to pay his creditors.
  • Provision is therefore firstly made for the Consumer’s required monthly living expenses to the effect that creditors are only paid what the consumer can realistically afford to pay,
  • The credit providers concerned will be invited to accept or reject the debt counsellors recommended debt re-arrangement proposal.
  • Should the credit providers accept the recommended debt re-arrangement proposal, the debt counsellor will have it converted to a consent order of court.
  • Should one or more of the credit providers not consent thereto, then the debt counsellor will enter into negotiations with them and if such negotiations are unsuccessful, then the debt counsellor will facilitate that the debt review application of the Consumer being submitted to a magistrate for consideration.
  • The debt counsellor therefor seeks, in a responsible and objective manner, to restructure the Consumer’s debt repayment obligations to a reduced and affordable amount and to have it approved by an order of court.
  • In the final analysis the payment plan that the debt counsellor would have developed is converted to an order of court to which the consumer’s credit providers are bound and which determines the consumer’s reduced payment obligations.

The DebtSensGroup’s methodology is entirely transparent and the consumer will be fully apprised of the debt review process upon applying to be placed under debt review. During this process no non-disclosures or misrepresentations will be made to the consumer.