Debtfree Magazine Jan 2017

Debt Review Offers Legal Protection
Have you ever had the situation where you make an arrangement with a creditor to pay
them back a smaller amount and feel relieved when they agree, only to have a different
person from the same creditor call weeks later and demand a different repayment
arrangement? It can be frustrating to keep getting these calls and to never have clarity on
exactly what the creditors are happy with or not. You constantly worry that somewhere,
one of your credit providers is starting to take legal action against you and might send
you a summons any day. That is very stressful.
With debt review that is not the case. Debt Review and Debt Counselling is part of a legal
process of restructuring your debt. What this means is that because every debt review
matter goes before a judge, magistrate or tribunal, you get finality and the protection of
a court order. The restructuring plan is set out in a court order. That court order means
that credit providers can’t later change their mind and try sue you. The matter has already
been finalised in court.
Magistrates CourT
Can hear all types of debt review matters
Cost vary depending on how long the court matter takes
Can issue a binding court order, restructuring debt repayments
even if some creditors don’t cooperate
Some courts can delay the process unnecessarily or are still
unfamiliar with the process
Generally shorter waiting times