Q: Can I Cancel My Debt Review Program? - DebtSafe (2024)

FAQs

Q: Can I Cancel My Debt Review Program? - DebtSafe? ›

Your Debt Review will stay listed on your credit record until a Clearance Certificate is issued. You can only receive a Clearance Certificate when: All debts are paid in full, or. You can withdraw from Debt Review prior to a Form 17.2 (prior to being declared over-indebted according to the National Credit Act).

Unless all the accounts are paid up or the consumer becomes entitled to a clearance certificate, the only way to terminate the debt review process, according to the NCR's Withdrawal from Debt Review Guidelines, is to apply to court for either the rescission of the debt review order if one was obtained, or for a ...

A debt management plan (DMP) isn't legally binding, so you can cancel it if you feel it isn't working for you. However, you may not get a refund of your fees and you'll need to make sure you have another way of dealing with your debts.

How do I cancel Accredited Debt Relief? You can unenroll from Accredited Debt Relief's program at any time by contacting your debt specialist. You'll get back all the money in your dedicated account, minus any fees you owe.

If you have your paid-up letters from your creditors, the debt review removal cost will be R1150 (including VAT). If you do not have these paid-up letters from your creditors, there will be a higher cost depending on the amount of paid-up letters that will need to be retrieved.

Disadvantages (and their impact): No access to new credit. During Debt Review, you cannot access new loans or credit cards. While this helps break the borrowing cycle, it can restrict your financial flexibility.

If you stop making your payments to the agency, your contract with them will simply end. You will not be liable for your monthly fee to the agency. However, what will happen is that your interest rates and any other concessions will revert back to what they were before your joining the program.

If your debt is forgiven or discharged for less than the full amount owed, the debt is considered canceled for the forgiven or discharged amount that you no longer need to pay. Cancellation of a debt may occur if the creditor can't collect, or gives up on collecting, the amount you're obligated to pay.

In most cases, you must report canceled debt as ordinary income on your federal tax return — even if the debt was less than $600 and you never received a Form 1099-C. List your canceled debt on Form 1040 under Schedule 1: Other Income.

The following will happen after a consumer cancels debt review: The original contractual interest rates will become applicable again. Waived delinquent payment penalties may get levied against current accounts. Credit providers may start legal action as the consumer will no longer have protection.

How to write a debt forgiveness letter? ›

I am therefore asking you to consider writing off my debt as I can see no way of ever repaying it. If you are unable to agree to this, please explain your reasons. Thank you for your help and I look forward to hearing from you.

Debt forgiveness, also known as debt relief or debt cancellation, is when a creditor pardons a debtor from part or all of their outstanding debt. Essentially, it can be a way to get out of debt without paying.

YES, at any point during the debt-review process. In terms of Section 86(10) the process doesn't start again when the consumer is successfully transferred to the new debt counsellor. The Client continues with the Debt Review as if nothing happened.

The answer: Yes, you can pay your creditors directly while under debt review if you choose to do so from the start.

If a determination of over indebtedness is made, but the restructured payment plan has not been made an order of Court, the consumer will remain under debt review. In such cases, the consumer would have to approach the relevant Magistrate's Court for an order to declare it no longer over indebted.

Debt counselling advantages:

There is no permanent record of having undergone debt counselling, meaning that once you have successfully made it through the process, you are able to walk away without anyone holding it against you in the future.