Step 1: Assessment & Application
The consumer applies for a Debt Review by providing the Debt Counsellor with all the relevant personal information including their essential monthly expenses and creditors list, with all supporting documentation i.e. ID, payslip and account information, on been assessed as over indebted by the debt counsellor a form 16 (application form) will be signed by the consumer confirming all the above mentioned relevant information received by the Debt Counsellor.
Step 2: Notification to creditors
The Debt Counsellor will inform all the creditors listed on the consumers debt review application of the consumers application by submitting a form 17.1 (Notification of a debt review application), within 5 days of the 16.1 (the application) been signed by the consumer.
Step 3: Creditors feedback
The Creditors will then verify each account of the consumer by forwarding to the debt counsellor a certificate of balance (COB) of any account held by them to the Debt Counsellor , the debt counsellor will use this certificate of balance as a true balance and peruse all details relating to the credit agreement, on satisfaction and collection of all COB’S , the debt counsellor will send a form 17.2 form to the creditor as notification of the debt counsellors acceptance of the consumers debt review application.
Step 4: Restructuring proposal to creditors
With the correct outstanding balances in hand and all other information regarding the consumers account i.e. Interest, Date of inception and Arrears, the Debt Counsellor will conduct a Monthly Income Vs Monthly Expenditures analysis to determine the affordability amount available to the consumers creditors, from which a proposal to each creditor can be achieved, the proposal will define the monthly amount proposed to each creditor and the new term (time period) proposed of each creditor and the interest, all subject to the consumers affordability.
Step 5: Legal protection
Once feedback has been received back from all creditors regarding the proposals, acceptances or counter proposals, The Debt Counsellor will have the Debt review application drawn up by attorneys for set-down at court to have the proposal turned into a court order, binding the agreements made between the consumer and their creditors. The debt counsellor will thereafter conduct an annual review with the consumer.