How to Exit Debt Review: Clearance Certificates
Debt review ends when the debts in your plan are paid up. Your debt counsellor then issues a clearance certificate, which is sent to the credit bureaus so your profile can be updated. Here is how it works in Port Elizabeth.
What a clearance certificate is
A clearance certificate is the document that formally confirms you have completed debt review. Under the National Credit Act, your debt counsellor must issue it once you have settled the debts covered by your restructured plan. It is proof that you are no longer under debt review.
How debt review comes to an end
1 You finish paying the plan
You complete the payments set out in your restructured plan. For most people this means all accounts under review are paid up. In the case of a home loan, the rules allow the certificate to be issued once the shorter-term debts are settled and the bond is up to date.
2 The counsellor issues the certificate
Once the qualifying debts are settled, your registered debt counsellor issues the clearance certificate. This is your right on completion, not a favour.
3 The bureaus are notified
The certificate is sent to the credit bureaus. They must remove the debt review status from your credit record, so you are no longer flagged as being under review.
4 You can access credit again
With the debt review flag removed, you are able to apply for credit in future. Many people choose to rebuild slowly and carefully after everything they have been through.
Leaving early is different. Exiting before you have completed the plan is a separate legal matter and usually needs a court application. If your circumstances have changed, speak to a registered debt counsellor about the right way to do this rather than simply stopping payments.
Keep your paperwork
Once you receive your clearance certificate, keep a copy safe. If a credit bureau or lender still shows you as under review after a reasonable time, the certificate is your evidence to have the record corrected.
Thinking of starting debt review?
Knowing there is a clear finish line helps many people commit to the process. If you are still at the start, read what is debt review in Port Elizabeth or check whether you qualify, then connect with a registered debt counsellor in Port Elizabeth.
Questions about your debt review? Ask a registered counsellor
Send an enquiry and we will connect you with an NCR registered debt counsellor. There is no cost to enquire.