HOW IT WORKS
Fill in your application form (Form 16).
If you haven’t filled your application (Form 16) you have no protection.
You will need:
- A list of your creditors
- A copy of your ID
- A recent pay slip
- Recent creditor’s statements
- Last 3 months bank statements
- Proof of residence
- Any legal documentation from creditors
Your Creditors are notified. You are protected from legal action.
Start paying the reduced, provisional payment with your next salary pay date.
In order to be declared over-indebted, your expenses must be greater than your monthly income. Your Debt Counsellor will look at your budget and calculate a reduced, provisional payment, with enough cash remaining for your living expenses.
Your Debt Counsellor will then notify your creditors that you have opted for debt counselling and your credit balances will be requested.
Initial Debt Repayment Plan is prepared.
Continue to pay your reduced, provisional payment every month.
The initial Debt Repayment is a temporary plan, which is sent to your creditors. It is important to continue paying the agreed provisional amount. This avoids unnecessary problems and shows that you are committed to getting out of debt
Debt Repayment Plan is negotiated with creditors.
Continue with the repayment of your provisional payment, until your plan has been re-structured. Thereafter your Debt Counsellor or DCM will contact you to pay the re-structured amount.
Your Debt Counsellor will negotiate with your creditors on your behalf to ensure that a reasonable, affordable repayment plan is agreed to. Based on creditor negotiations, your Debt Counsellor may need to re-structure the plan.
Application made for Debt Repayment Plan to be made a court order.
Once the court order is issued, you are on your way to a less stressful financial future. Please be aware that missing just one payment, or paying the wrong amount, opens up opportunities for Credit Providers to take legal action against you.
An application is made for the Debt Repayment Plan to be made a court order. A specialist legal representative may represent the matter in court on your behalf.