Debt review is not a judgment nor an administration order. It’s an application to the court in terms of section 86 of the National Credit Act, 34 of 2005, if the debtor believes that he/she is over-indebted.
The debtor can approach a registered debt counsellor, who will assist in assessing whether the debtor is over-indebted or not.
It is important to note the differences between a debt collector and a debt counsellor as they are in a sense opposing occupations. It is important to verify that a debt counsellor is registered. You can do this on the NCRs website: www.ncr.org.za.
After the debt counsellor has assessed the debtor’s financial position and has found the debtor to be over-indebted, the debt counsellor will propose a debt re-arrangement plan to all parties. Once a debtor has applied for debt review, all credit bureaus will be notified to record this and the debtor will not be able to access credit.