Is it Too Late For Debt Review?
You need to take note of the below pointers to realise when it is just too late for debt review on either a specific account such as on your bond, or for all your debt to be included. Debt review is the consumer's LAST option to try and restructure the debt.The sooner you realise that it may be too late for debt review, the sooner you can move onto the next possible solutions, to ease your financial burden.
1. No Income
You may only apply for debt review if you can prove to the courts, through bank statements and payslips that you do have an income. You may not apply for debt review if you have no income. Any debt counsellor taking on consumers with no income are doing so unethically and fraudulently.
2. Lost Employment While Under Debt Review
A short grace period can be arranged with the understanding that it would be a short term arrangement and that as soon as new employment is gained, the back payments would need to be repaid in full as well as the current monthly rehab into the PDA.
Should you not be able to gain employment within these few weeks, you would need to look at sequestration or liquidation as there would be no alternative option.
3. Cannot Keep Up With My Debt Review Repayments
If you are currently under debt review and for some reason, cannot keep up with the required repayments, you need to look at an alternative solution especially if you have assets such as bonds or vehicles.
This could mean that you would need to sell your home or vehicle to try and lessen your financial burden.
You have to accept that if you cannot afford your already lowered repayments, you have to sell your assets. This is fair towards your creditors and more importantly, towards yourself.
At times you need to get rid of everything, including your debt, to make way for a fresh new start.
It is pointless trying to hold onto something that you cannot afford, even under debt review. The stress could eventually exhaust you, make you sick or break you down to the extent that you feel you cannot carry on any longer. No house or car is worth your life.
The next best option would be to sell off assets or be placed under sequestration or liquidation. By taking this option, it means that you will have to sell all your assets including your home, car, and potentially some furniture.
4. I Have A Court Order In Place - Cannot Make The Required Repayments
If you have a court order in place for your debt review, and you can no longer afford the repayments, you would need to look at being placed under sequestration or liquidation if you cannot sell off the assets and settle the debt. By not complying with the court order, you are in contempt of court and the creditors can terminate with immediate effect.
5. A Letter Of Demand Also Known As A Section 129 Letter Has Been Sent
If you have received this letter prior to being placed under debt review, the account number stated on the letter will be excluded from debt review. The creditors are strict in issuing these letters especially for the bond and vehicle accounts. These letters are usually issued within the 3rd month that you have either defaulted or short paid on your normal bond payment.
These letters are always sent registered post and even if you do not pick up the letter from the post office, the legal side of the letter still stands in favour of the credit providers.
6. A Summons Has Been Issued
Gone are the days when debt counsellors could speak with the creditors and beg them to include the debt under debt review. If you have received a Summons prior to being placed under debt review, the debt on which the Summons has been served cannot be included.
However, if you or the debt counsellor can prove to the courts that the Summons was issued illegally, or in error, it would be a matter that can be addressed and resolved with the creditors.
7. Notice Of Attachment, Writ Of Execution, Auction Date
Any debt that has any of the above will be excluded from debt review without exception. If all your debt has either a section 129 letter or a summons or notice of attachment or writ of execution, it is too late to apply for debt review. Sequestration or liquidation would be your only option.