Are you looking for a way out of debt?

Do you constantly feel overwhelmed by financial pressure and worry about overdue debt? You're not alone. In South Africa, nearly 10 million people are struggling just like you.But there is hope! At Debtability, we understand the stress and anxiety that comes with financial difficulties. We are here to help you improve your financial situation and guide you towards a debt-free future with our expertise and experience.

Discover your debt relief potential with our Estimator

Struggling to keep up with your monthly debt repayments? Our Debt Relief Estimator is designed to give you an instant snapshot of what your restructured debt repayments could look like under a debt review plan. No more guessing or uncertainty—get real insights in minutes!Simply enter the details of your current monthly payments—home loan, car loan, and any other debts—and let our estimator calculate your adjusted installments. This quick, easy tool gives you a clear picture of how much lighter your debt burden could be when working with us.But why stop there? After using the estimator, we offer you a free credit report to take your debt management journey even further. Your credit report will highlight your financial health, empowering you with the knowledge to take back control.

Why Use Our Estimator?

Don’t wait any longer. Start your journey towards financial freedom today! Complete the contact form below and one of our professional debt counsellors will get in touch with you to guide you through the process.

Use our estimator now and take the first step towards managing your debt more effectively.

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Disputing credit record listings and personal information

Disputing personal information or 3rd party listings held by the different credit providers or credit bureaus, is a legal process. These disputes may impact a consumer’s creditability and credit scoring causing rejection of credit and other applications or higher than expected costs of credit. This can help improve your credit, and possible qualification of lower cost of credits.Types of Adverse Listings a Consumer Can Dispute:Incorrect Personal Information: Misspelled names, Incorrect addresses, Wrong date of birth, Incorrect employment information.Invalid or Incorrect Account Information: Accounts that do not belong to the consumer, Incorrect account numbers, Wrong account statuses (e.g., showing an account as open when it is closed), Inaccurate balances, Incorrect payment history (e.g., late payments that were actually made on time)Duplicate Listings: The same debt listed multiple times, Accounts appearing more than once under different creditors.Outdated Information: Accounts that should no longer be reported due to age (e.g., debts older than the permissible reporting period), Settled or paid accounts still showing as outstanding.Fraudulent Accounts: Accounts resulting from identity theft, Unauthorized credit inquiries, Loans or credit cards opened without the consumer’s knowledge.Incorrect Adverse Listings: Wrongly listed judgments or legal actions, Incorrect or outdated public records (e.g., bankruptcies, liens), Incorrect default or delinquency information.Rescinded or paid up judgement: Judgements that are recorded on the credit records are not automatically removed or updated. Specific requests with supporting documents must be submitted to the respective credit bureau.Explanation of Legal Process:
The dispute process aims to have the information held by any credit bureau or credit provider to be accurate and reflecting the true credit profile of a consumer. This process requires filing a dispute with the relevant credit bureaus to update or remove the disputed information based on valid grounds, such as fraudulent actions outdated information, incorrect listings, duplicate listings, or new evidence. The consumer must demonstrate to the credit bureaus or credit providers satisfaction that there are valid reasons for updating or removing the disputed information or listings.Legal Process:
• Obtain credit reports: Check credit reports from the major credit bureaus for any evidence supporting that information is incorrect or listings invalid.
• Identify discrepancies: Review all entries carefully to identify any inaccuracies or fraudulent entries.
• Gather evidence: Collect relevant documents such as proof of payment made, confirmation of paid up or prescription status by credit providers, proof of rescission and personal information.
• Submit a dispute: Contact the credit bureau(s) to file a dispute. This can typically be done online, by mail or over the phone. Provide a detail explanation of the error and attach supporting documentation.
• Follow up: Monitor the progress of the dispute. Ensure that the credit bureau has corrected the error and updated the report accordingly.Potential Outcomes:
• If the dispute is resolved in favour of the consumer, the credit bureau must correct the information and provide a free updated credit report.
• If the dispute is not resolved in favour of the consume, the consumer has the right to add a statement to their credit report explaining the dispute.Expected Timeline:
• Preparation and Filing: 3-5 days Obtain information, gather evidence and preparing the dispute.
• Initial response: 3-4 weeks. The credit bureau must investigate the dispute within 30 days of receiving it. Consumer should receive an acknowledgement of the dispute.
• Investigation: 5-7 weeks
• The credit bureaus will contact the creditor or information provider to verify the accuracy of the disputed information.
• Resolution: The credit bureau must report their findings in writing to consumer once completed.Required documentation
• Identity document
• Rescission of judgement court order or paid up confirmation letter.
• Proof of residential addressFee structure
• Debtability administrative fee: R 2750
• Legal and court fee: No fees pending the nature of the outcome. Where dispute was declined by credit bureaus and need for legal intervention is require, fees will be agreed on between attorneys and consumer.Payment terms
• Administrative tasks start after receipt of at least 50% of fee, R 1375.
• Legal and court process start after full payment of fees where applicable.

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Debt Review and Counselling Services

Our debt review and counselling service assists over-indebted consumers in managing and repaying their debts in an organized and affordable manner. This service is designed to provide relief to consumers struggling with debt, ensuring they can meet their financial obligations while maintaining a reasonable standard of living.Explanation of the Legal Process:Initial Consultation and Assessment:
• Step: Conduct a thorough assessment of the consumer's financial situation, including income, expenses, and debt obligations.
• Outcome: Determine if the consumer qualifies for debt review based on their level of overindebtedness.
• Timeline: 1-2 weeksApplication for Debt Review:
• Step: If the consumer qualifies, submit a formal application for debt review to the National Credit Regulator (NCR).
• Outcome: Acknowledgement of receipt by the NCR and notification to all creditors that the consumer is under debt review.
• Timeline: 1 weekDebt Counsellor's Proposal:
• Step: The debt counsellor develops a repayment plan based on the consumer’s financial assessment. This plan proposes reduced monthly payments to creditors.
• Outcome: Submission of the repayment plan to creditors for approval.
• Timeline: 2-4 weeksNegotiation with Creditors:
• Step: Negotiate with creditors to accept the proposed repayment plan.
• Outcome: Creditors agree to the revised terms, or the plan is adjusted as necessary.
• Timeline: 2-6 weeksCourt Order:
• Step: Submit the agreed repayment plan to the Magistrate’s Court for a consent order.
• Outcome: The court issues an order making the repayment plan legally binding on all parties.
• Timeline: 4-8 weeksImplementation and Monitoring:
• Step: The consumer begins making payments according to the court-approved plan. The debt counsellor monitors payments and progress.
• Outcome: Regular payments are made to creditors, and the consumer works towards becoming debt-free.
• Timeline: Ongoing until all debts are repaid, typically 3-5 yearsDebt Review Clearance Certificate:
• Step: Once all debts under the debt review are paid, the debt counsellor issues a clearance certificate.
• Outcome: The consumer is officially released from debt review, and their credit record is updated to reflect this.
• Timeline: Clearance certificate issued within 2-3 weeks of final payment.Potential Outcomes:
1. Successful Repayment: The consumer repays all debts as per the repayment plan and receives a clearance certificate.
2. Improved Financial Management: The consumer learns better financial management and budgeting skills.
3. Legal Protection: The consumer is protected from legal action by creditors while under debt review.
4. Potential Challenges: Delays or issues may arise if the consumer’s financial situation changes significantly or if creditors do not agree to the proposed plan.Required documentation:
1. Identity document
2. Proof of residence
3. Last three months bank statements
4. Last three months salary advice or proof of income
5. Marriage certificate if married
6. Antenuptual contract if married out of community of property
7. Available credit provider statements
8. Section 129 notices received from credit providers
9. Any summons or other legal documentation received from credit providersFee structure:
1. Fees are prescribed by the National Credit Regulator
2. Fees listed are exclusive of VAT
3. Application fee: R50
4. Administration fee: R300
5. Reckless lending investigation (where applicable) R1500
6. Restructuring fee: Minimum of affordability or R8000 for single application or R9000 for joint application.
7. Debt review court application legal fees: Subject to affordability with maximum of R6500
8. Monthly after care fees: 5% of affordability amount with maximum of R450 per month
9. Payment distribution agent fees: R5-R10 per credit providers, subject to value of instalmentPayment terms:
1. Application and administration fees due in month one
2. Restructuring fee after a determination of over indebtedness was done, usually in month one
3. Debt review court application legal fee before attorneys are instructed to prepare the debt review application to court, usually in month two
4. Monthly after care are collected from month two, every month, until all debt is paid in full.Value added service:
1. Credit providers who have issued a credit life insurance policy against the credit agreement have to disclose such insurance to the debt counsellor.
2. The debt counsellor compares the monthly premium to alternative insurance policies.
3. Savings in premiums are referred to the consumer for acceptance
4. Existing policies is cancelled at the credit provider and new policy are ceded to them

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Transfer of Debt Review to a New Debt Counsellor

This service assists consumers in transferring their debt review process to a new debt counsellor if their current counsellor is no longer in operation or if they prefer a different counsellor.

Legal Process:

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ENSURE THE FOLLOWING POINTS BEFORE REQUESTING ANY CREDIT REPORT:

KNOW YOUR CREDIT INFORMATION

Many people apply for financing and are immediately declined.Few institutions provide a reason for the rejection and refer individuals to the credit bureau.It's one thing to request the report, but what should you do if information on the report appears questionable?

Why should you take action today?

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ENSURE THE FOLLOWING POINTS BEFORE REQUESTING ANY CREDIT REPORT:

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THE SEQUESTRATION PROCESS EXPLAINED

The Debtability sequestration process consists of seventeen (17) steps, carried out in four (4) phases.Phase 1: Application for Sequestration
1. The applicant completes an application form that includes all financial information, assets, and liabilities, enabling the insolvency practitioner to correctly advise on the available options.2. Assessment of the applicant's unique situation and needs.
- The insolvency practitioner ensures that the applicant's estate is indeed insolvent.
- Check if any other debt relief options are available under the National Credit Act.Phase 2: The Legal Process
Once it is agreed that sequestration is the best debt relief option, the legal process begins.3. The applicant's intention to apply for sequestration is published in the Government Gazette. After publication, the applicant is protected under the Insolvency Act 24 of 1936, which prohibits further payments to creditors, except for garnishee orders, which cease only upon serving the sequestration order to the employer.4. A court date is obtained from the High Court for the hearing of the application.5. The insolvency practitioner prepares a statement of the applicant's interests, as well as all other relevant court documents to support the High Court application. This statement includes:
- A list of creditors with outstanding balances.
- The expected distribution to creditors if the application is granted, usually between R0.20 and R0.25 in the rand.6. On the court day, the applicant is represented by an advocate. The applicant does not need to be present at the court or attend the proceedings.7. After the hearing, the insolvency practitioner informs the applicant of the outcome, whether successful or otherwise.8. Once the court order is granted, the Master of the High Court appoints a curator to oversee the financial interests of the insolvent estate.9. The applicant, now a client, pays the curator (usually through the insolvency practitioner) the amount owed to creditors according to the court order. The client can arrange to pay this amount interest-free over 18 to 24 months.10. If the court order mandates the sale of certain assets, an auctioneer is appointed to sell the assets, and the proceeds are paid to the curator.11. The curator distributes the funds received to the respective creditors according to the court order and regulations of the Insolvency Act.Phase 3: The Period of Insolvency12. After the court order is granted, the Master of the High Court appoints a curator to manage the financial interests of the insolvent estate.13. The applicant, now a client, pays the curator (typically through the insolvency practitioner) the amount owed to creditors according to the court order. The client can make arrangements to pay this amount interest-free over 18 to 24 months.14. If the court order mandates the sale of certain assets, an auctioneer is appointed to sell the assets, and the proceeds are paid to the curator.15. The curator distributes the funds received to the respective creditors according to the court order and regulations of the Insolvency Act. The process takes between 24 and 34 months from the date of the court order, depending on the client’s unique situation.16. Once all aspects of the court order have been fulfilled, the curator issues a document to the client confirming this.Phase 4: Rehabilitation
17. A client can apply for rehabilitation from insolvency once the document from the curator is obtained, confirming that all aspects of the court order have been fulfilled.

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Frequently Asked Questions on Debt Counseling and Insolvency

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