Debt Review
Debt review — also called debt counselling — is a formal legal process introduced by the National Credit Act 34 of 2005. It is designed for South Africans who are over-indebted: where monthly income is no longer enough to meet all financial obligations. The process restructures what you owe into a single, reduced monthly payment while legally preventing creditors from acting against you or your assets.
Who Qualifies?
You may apply if you are a natural person with one or more credit agreements under the NCA and your monthly debt repayments exceed what your income allows after basic living expenses. A registered debt counsellor formally assesses your position before the process begins. Debt review is not sequestration — it means you need a sustainable repayment plan, not that you are insolvent.
How the Process Protects You
From the date your application is submitted, creditors are legally prohibited from issuing summons or repossessing your assets — provided you comply with the restructured plan. Your debt counsellor negotiates reduced instalments and interest rates directly with each creditor. Once agreed, the restructured plan is made an order of court under section 87 of the NCA, binding all parties. You make one monthly payment to a Payment Distribution Agency, which distributes it to your creditors on your behalf.
Exiting Debt Review
The process is not permanent. You exit once your restructured debts are fully settled and the clearance certificate is issued. If your financial circumstances improve materially — through a bonus or inheritance — you may be able to settle earlier or apply to court to be declared no longer over-indebted.
What We Handle
- Financial assessment and formal over-indebtedness determination
- Notification of all credit providers and credit bureaus on your behalf
- Negotiation of reduced interest rates and restructured instalments with creditors
- Preparation and filing of the section 87 court application
- Defence against any creditor that attempts legal action during the protected period
- Ongoing monitoring throughout the process and clearance certificate on completion
Ready to discuss your matter?
Speak to a Meridian attorney — no obligation, no jargon.