Debt counsellors such as Debt-911 will re-negotiate credit agreements between lenders and over-indebted consumers with the objective of restructuring a consumer’s debt repayment commitments. Debt-911 will contact a client’s lenders with a proposed reduced monthly payment schedule. Generally lenders will submit a counter proposal which we then discuss with the client. If an agreement is reached we will request consent from the Tribunal.
Should an agreement not be reached, Debt-911 will refer the matter to the Magistrate’s court who will then conduct a hearing and make the necessary decision.
Effects of Debt Restructuring
Over-indebted consumers placed under debt review are afforded protection from legal action that may be taken against them by lenders. Consumers under debt review are prohibited from taking on more credit except for a consolidation loan. It is important to note that consumers undergoing debt review must religiously stick to their repayment schedules. Failure to do so may invoke legal action by their creditors.
Debt-911 Clearance Certificates
Debt-911 clients who successfully emerge from the debt review process will be issued with a Clearance Certificate which will ensure that credit bureaus who hold consumers credit records will clear a consumer’s negative record. By law, all negative records associated with the paid debt must be cleared. This is one of the most important benefits of the debt review process as it enables consumers to emerge with their credit records intact enabling them to borrow in future without hindrance.
Debt Review – Explore your options
If you are struggling to meet your monthly repayments, simply call us, SMS Help to 40935 or fill out the form alongside and a trained Debt-911 counsellor will call you to assess your personal situation and give you a free consultation.