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Clear guidance for consumers already in debt review
Consumer Information
Understanding Your Debt Review Court Process
If your Debt Counsellor has referred your matter to VDH Attorneys Incorporated, you may have questions about affidavits, court dates, legal fees, opposition, payments or what happens after an order is granted.
This Consumer Information Centre explains the legal process in plain language. It is not intended to persuade anyone to enter debt review. It is designed to help consumers who are already in the process understand what is happening, why particular documents are required, who is responsible for each part of the process and when an issue requires urgent attention.
Court Process
PART 1 - THE COURT PROCESS
Why Do I Need to Sign a Confirmatory Affidavit?
If your Debt Counsellor has referred your debt review matter to court, you will be asked to sign a Confirmatory Affidavit. It may look like a short document compared with the rest of the court application, but it is not an optional administrative form.
The requirement comes directly from the Debt Counselling Regulations, 2012. Regulation 2(2)(e) provides that an application brought by a Debt Counsellor for an order contemplated in section 86(7)(c) of the National Credit Act must be supported by a confirmatory affidavit from the affected consumer.
What are you confirming?
Your Debt Counsellor's Founding Affidavit contains information about your financial position and the proposal that will be placed before the Magistrate. Much of that information concerns facts that are personally known to you, including your income, household expenses, marital circumstances, employment, dependants and credit obligations.
The Debt Counsellor can explain the assessment that was performed and the recommendation being made. The Debt Counsellor cannot personally testify to every fact about your household and finances. Your Confirmatory Affidavit allows you to confirm, under oath, the information that falls within your personal knowledge.
Can the application proceed without it?
The regulation expressly requires the affidavit. For that reason, VDH cannot simply treat it as unnecessary and proceed as if it had been supplied.
This is why you may receive follow-up communication if the affidavit remains outstanding. The purpose is not to place pressure on you. The court application must contain the evidence required for the Magistrate to consider the Debt Counsellor's recommendation.
Why must it be commissioned?
An affidavit is evidence given under oath or affirmation. It must therefore be signed in the presence of a Commissioner of Oaths in accordance with the applicable commissioning requirements.
Read the affidavit before signing it. If your income, employment, address, marital status, household expenses or another material fact has changed, tell your Debt Counsellor or VDH before you depose to the affidavit. You should never confirm information under oath if you know it is no longer correct.
What if you are overseas, unwell or unable to get to a Commissioner of Oaths?
Tell us as soon as possible.
Being overseas, hospitalised, unable to travel or experiencing another genuine practical difficulty does not necessarily mean the court application must stop permanently. Depending on the circumstances, there may be lawful practical arrangements that can be considered.
The important point is to raise the problem early. Do not simply leave the affidavit outstanding because the normal signing process is difficult for you.
Why is the original sometimes required?
Court filing practices differ. Where the original commissioned affidavit is required for the court pack, a scan or photograph may help VDH confirm that the document has been signed, but it does not necessarily replace delivery of the original. Follow the instructions given for your particular court.
In short
Your Confirmatory Affidavit is required because the court is being asked to make an order based partly on facts about your own financial circumstances. It allows you to confirm those facts under oath and forms part of the prescribed debt review court application.
If you cannot sign or deliver it in the ordinary way, contact your Debt Counsellor or VDH rather than allowing the problem to delay the application unnecessarily.
Key legal references
· National Credit Act 34 of 2005: sections 86 and 87.
· Debt Counselling Regulations, 2012: regulation 2(1) and 2(2)(e).
· Magistrates' Courts Rule 55.
What Is a Debt Review Court Order?
A debt review court order is an order made by the Magistrates' Court after considering the Debt Counsellor's recommendation and the evidence placed before it.
It is important to distinguish between a repayment proposal and a court order. Your Debt Counsellor prepares and recommends a proposed rearrangement. The Debt Counsellor does not grant the order. The Magistrate decides whether the relief sought should be granted.
What does the Magistrate consider?
Section 87 of the National Credit Act requires the Magistrates' Court to conduct a hearing and to have regard to the proposal, the information before the court and your financial means, prospects and obligations.
The court may reject the recommendation or make an appropriate order rearranging one or more credit obligations in a manner permitted by the Act. Where properly raised and proved, the court may also consider reckless-credit relief.
The Supreme Court of Appeal in Nedbank Ltd and Others v National Credit Regulator and Another confirmed that the debt review referral is a formal court process and that the Magistrates' Courts Rules apply to it.
What does the order actually do?
Where a rearrangement order is granted, it records the repayment terms approved by the court for the credit agreements dealt with in that order.
Depending on the order, this may involve extending repayment periods, reducing the instalment through that extension, postponing payment dates for a specified period, or combining forms of relief authorised by section 86(7)(c)(ii).
The order does not simply cancel valid debt. Debt review is a restructuring process directed at the eventual satisfaction of responsible credit obligations. The Supreme Court of Appeal emphasised this in Collett v FirstRand Bank Ltd and Another .
Is my Debt Counsellor's proposal already binding on every credit provider?
No. A proposal is a recommendation. If a credit provider accepts particular terms, that acceptance can be important, but the section 87 order is made by the court.
This is why you may be making payments according to a proposed arrangement while the legal process is still continuing. A payment plan being implemented by the PDA is not, by itself, proof that a Magistrate has already granted a court order.
What happens once the order is granted?
Regulation 2(3) of the Debt Counselling Regulations requires the Debt Counsellor to collect the order and deliver it to the affected consumer and credit providers within five working days of issue. Regulation 2(4) requires each credit provider to implement the terms of the order within ten working days of receipt.
Your Debt Counsellor remains responsible for the ongoing debt review and aftercare. You must continue making payments in accordance with the applicable arrangement.
In short
A debt review court order is the formal judicial outcome of the debt review court application. It is the Magistrate - not VDH, the Debt Counsellor or a credit provider - who ultimately decides whether the proposed rearrangement should be granted.
Key legal references
· National Credit Act 34 of 2005: sections 86(7)(c), 86(8)(b), 87 and 88.
· Debt Counselling Regulations, 2012: regulation 2(3) and 2(4).
· Nedbank Ltd and Others v National Credit Regulator and Another (662/2009, 500/2010) [2011] ZASCA 35; 2011 (3) SA 581 (SCA).
· Collett v FirstRand Bank Ltd and Another (766/2010) [2011] ZASCA 78; 2011 (4) SA 508 (SCA).
How Long Will It Take Before My Debt Review Court Application Is Granted?
There is no single number of weeks or months that applies to every debt review court application.
Some matters can be decided relatively quickly. Others require additional documents, court-specific steps, further affidavits, negotiations, opposition or more than one court appearance.
A longer process does not automatically mean that nothing is happening or that the application has failed.
What usually affects the timeframe?
The completeness of the documents. The application cannot be properly progressed if an essential affidavit, proof of income, marital-status document or other material information remains outstanding.
The court involved. Debt review applications are heard throughout South Africa. Court rolls, filing practices, available hearing dates and local administrative requirements differ.
Whether the facts have changed. If your income, employment, expenses, marital circumstances or account position changes materially after the papers were prepared, the Debt Counsellor may need to update the proposal or evidence.
Opposition or counter-proposals. A credit provider may file an answering affidavit, raise a legal issue or propose different repayment terms. That dispute may require a reply, negotiation or argument before the Magistrate.
A postponement. A Magistrate may require further information, proof, service or legal clarification. A postponement means the matter has not been finally decided; it does not necessarily mean the application has failed.
Why can't VDH guarantee the date on which the order will be granted?
Because the court makes the decision.
Section 87 requires the Magistrate to consider the information before the court and your financial means, prospects and obligations. An attorney can prepare and present the application, respond to issues and take the procedural steps needed to move it forward. No attorney can responsibly guarantee the date on which a judicial officer will grant an order.
What can you do to avoid unnecessary delay?
Respond promptly when documents or signatures are requested. Keep your Debt Counsellor informed if your financial circumstances change. Make sure your contact information remains current. Continue your debt review payments unless your Debt Counsellor advises you, on a proper legal basis, that the arrangement has changed.
If there is a genuine obstacle - for example, you are overseas or cannot obtain a document - explain the problem rather than simply not responding. Often the important issue is knowing about the difficulty early enough to deal with it.
A note about the 60-business-day period
You may hear references to a "60-day rule". That period does notmean that a debt review order must be granted within 60 business days. Section 86(10) regulates circumstances in which a credit provider may seek to terminate a review relating to a particular agreement. The current section 86(10)(b) also prevents termination of a debt review application that has already been filed in court or the Tribunal.
It should therefore not be used as a promise that every court order will exist by day 60.
In short
The proper question is not simply, "How many days has this taken?" It is:
What step is the matter currently at, is anything outstanding, and what must happen before the Magistrate can decide it?
Key legal references
· National Credit Act 34 of 2005: sections 86(10) and 87.
· Debt Counselling Regulations, 2012: regulation 2.
· Collett v FirstRand Bank Ltd and Another [2011] ZASCA 78, read subject to the amendments later made to section 86(10).
What Happens on My Debt Review Court Date?
Receiving a court date is an important step in your debt review application. It means that the matter is scheduled to come before the Magistrates' Court.
A court date is not a guarantee that the order will be granted that day. The Magistrate must consider the application and may require an issue to be addressed before making a final order.
Do you need to attend personally?
In many debt review matters, the evidence is placed before the court through affidavits and the application is presented by the attorney appearing on behalf of the Debt Counsellor. You will not necessarily be required to attend personally.
However, the court has powers under Rule 55 to direct that oral evidence be heard on a specified issue. If VDH, your Debt Counsellor or the court specifically instructs you to attend, that instruction should not be ignored.
If you are told to attend but are overseas, unwell or face another genuine difficulty, raise it immediately so that the appropriate procedural options can be considered.
What happens when the matter is called?
The attorney presents the Debt Counsellor's application, identifies the relief sought and addresses any questions or legal issues raised by the Magistrate. If a credit provider has opposed the application, the court may also hear argument on the disputed issues.
Section 87 requires the Magistrate to consider the proposal and information before the court and your financial means, prospects and obligations.
What are the possible outcomes?
Granted: The Magistrate makes the rearrangement order.
Postponed: The matter is deferred because something further is required. This may include a document, updated information, additional service, an affidavit or legal argument.
Removed from the roll / not enrolled: The matter is not being heard on that date. The reason must be established and, where appropriate, corrected before another hearing is arranged.
Dismissed / rejected: The court has made an order refusing the application. This is materially different from a postponement and requires legal assessment.
When will you receive the written order?
The outcome can be known before the formal written order is available from the clerk of the court. Regulation 2(3) requires the Debt Counsellor to collect the order and deliver it to you and the affected credit providers within five working days from the date of issue.
What should you do while waiting?
Remain available for communication and continue complying with your payment arrangement. A court date or postponement is not a payment holiday.
If you do not understand the feedback you receive after court, ask for the outcome in plain language: What did the Magistrate decide? What happens next? Is anything required from me?
Key legal references
· National Credit Act 34 of 2005: section 87.
· Debt Counselling Regulations, 2012: regulation 2.
· Magistrates' Courts Rule 55.
· Nedbank Ltd and Others v National Credit Regulator and Another [2011] ZASCA 35.
What Happens If a Credit Provider Opposes My Debt Review Application?
Hearing that a credit provider has opposed your debt review application can be unsettling. Opposition does not, however, mean that the Magistrate has rejected your application.
It means that a credit provider disputes some part of the case or the order being requested and wants the court to consider its position before making a decision.
Why might a credit provider oppose?
An objection may relate to the proposed instalment, repayment period, interest treatment, balance, affordability assessment, inclusion of a particular account, procedural compliance or the evidence supporting the proposal.
Sometimes the disagreement affects only one account or one term. It should not automatically be treated as an attack on the entire debt review.
Can an order still be granted?
Yes. The Magistrate, not the credit provider, decides the application under section 87.
A credit provider is entitled to place its position before court. The Debt Counsellor, through the legal process, is likewise entitled to answer the objection and motivate the recommendation. The court then decides what relief, if any, should be granted.
What does VDH do?
Where VDH has been instructed to deal with the opposition, we identify exactly what is disputed and determine the appropriate legal response. That may include obtaining clarification, requesting further evidence, considering a counter-proposal, negotiating a resolution, preparing a replying affidavit or presenting legal argument.
Formal opposition in a Rule 55 application is dealt with through the court rules. An answering affidavit and any appropriate reply become part of the evidence before the Magistrate.
What is a counter-proposal?
A counter-proposal is an alternative set of terms suggested by a credit provider. It is not automatically binding merely because it has been made.
Your Debt Counsellor must consider whether the proposed terms are affordable, responsible and capable of being supported in the context of the overall debt review.
Will you need to provide more documents?
Possibly. If an objection concerns income, household expenses, marital status, a particular account or another fact within your knowledge, you may be asked for updated documents or an affidavit.
Read anything you are asked to sign. If a fact is incorrect or your circumstances have changed, raise it before you confirm it under oath.
Will opposition delay the order?
It can. Opposed matters may require an exchange of affidavits, settlement discussions and a hearing at which the disputed issues can properly be argued.
The useful questions to ask are:
· What exactly is being opposed?
· What is the next legal step?
· Is anything required from me?
Key legal references
· National Credit Act 34 of 2005: sections 86 and 87.
· Debt Counselling Regulations, 2012: regulation 2.
· Magistrates' Courts Rule 55.
· National Credit Regulator v Nedbank Limited and Others [2009] ZAGPPHC 100.
Why Am I Being Asked for Updated Documents Again?
A common frustration is being asked for documents that you believe you already supplied when you first applied for debt review.
The reason is usually that a debt review court application is based on your financial circumstances, and those circumstances can change while the legal process is underway.
The court considers your current financial position
Section 87 requires the Magistrate to have regard to your financial means, prospects and obligations. If the information before the court is materially outdated, the Debt Counsellor may need updated evidence to confirm that the proposal still reflects reality.
Regulation 24 of the National Credit Regulations also requires the Debt Counsellor to verify the information used in the assessment through appropriate documentary proof, contact with relevant parties or another verification method.
What might be requested again?
Depending on your matter and the court, this can include current proof of income, bank statements, proof of residence, identity or marital-status documents, proof of household expenses, information about dependants or confirmation of a spouse or partner's household contribution.
A request for an updated document does not necessarily mean that the original document was lost. It may mean that the court date is months later and the information needs to be current.
What if nothing has changed?
Say so, but still provide the requested proof where it is reasonably necessary. A current document may be required to demonstrate that the position has remained the same.
What if something has changed?
Tell your Debt Counsellor before signing a new affidavit. A material salary reduction, job change, new dependant, divorce, relocation or substantial new essential expense may affect the affordability calculation or proposal.
The legal team would rather deal with a genuine change openly than place information before court that everyone knows is outdated.
In short
Updated documents are about proving the financial position the court is being asked to act on. The request is generally intended to keep the application accurate and capable of being decided, not to make you repeat paperwork without purpose.
Key legal references
· National Credit Act 34 of 2005: sections 79, 86 and 87.
· National Credit Regulations, 2006: regulation 24.
· Debt Counselling Regulations, 2012: regulation 2.
Roles & Fees
PART 2 - WHO DOES WHAT AND WHAT ARE THE FEES FOR?
Who Does VDH Represent in the Debt Review Court Application?
If VDH is handling the court application arising from your debt review, an important distinction is often misunderstood:
VDH represents the Debt Counsellor. VDH does not act as your personal attorney in the section 86 debt review application.
That may seem unusual because the application concerns your finances and credit agreements. It follows from the structure created by the National Credit Act.
The Debt Counsellor brings the court application
Where the Debt Counsellor determines that you are over-indebted and recommends a court rearrangement, the Debt Counsellor refers the matter to the Magistrates' Court.
In National Credit Regulator v Nedbank Limited and Others, the High Court described this as an unusual statutory process in which the Debt Counsellor acts as the pro forma applicant. The Court also described the Debt Counsellor as a neutral functionary who is not there simply to advance the cause of one party.
The Supreme Court of Appeal later confirmed the Debt Counsellor's statutory role in Nedbank Ltd and Others v National Credit Regulator and Another.
What does "neutral functionary" mean?
Your Debt Counsellor must assess your financial position, consider the relevant credit agreements and formulate a recommendation capable of being placed before court.
The Debt Counsellor is not the credit provider's representative. Equally, the Debt Counsellor is not your personal litigation attorney. The Debt Counsellor performs a statutory function and must be able to explain and support the recommendation made to court.
Why does VDH contact you if you are not our client?
Because you are the person whose circumstances are the subject of the application.
VDH may need your Confirmatory Affidavit, updated financial documents, an explanation of a household expense, information about your spouse or clarification of facts relevant to an objection.
Direct communication with you is part of progressing the Debt Counsellor's application. It does not change the identity of our client.
What if you need independent legal advice?
If you need advice about your personal rights in a dispute that falls outside the Debt Counsellor's court application - for example, separate enforcement proceedings brought against you - you may need an attorney specifically appointed to represent you.
VDH cannot assume that separate mandate merely because we are already acting for your Debt Counsellor in the debt review application.
The simple version
You: provide the information and evidence concerning your financial circumstances.
Your Debt Counsellor: performs the statutory assessment and makes the recommendation.
VDH: represents the Debt Counsellor in the legal court process.
Credit providers: may respond to or oppose the relief sought.
The Magistrate: decides whether the court order should be granted.
Key legal references
· National Credit Act 34 of 2005: sections 86 and 87.
· National Credit Regulator v Nedbank Limited and Others (19638/2008) [2009] ZAGPPHC 100; 2009 (6) SA 295 (GNP).
· Nedbank Ltd and Others v National Credit Regulator and Another [2011] ZASCA 35.
What Am I Paying for When I Pay a Litigation Fee During Debt Review?
When you enter debt review, you may see an attorney fee, legal fee or litigation feeincluded in the fees disclosed to you by your Debt Counsellor.
A common question is: "If VDH represents my Debt Counsellor and not me personally, why am I paying a litigation fee?"
The answer is that the debt review may require a formal legal process before the Debt Counsellor's proposed rearrangement can become an order of court. The litigation fee funds the legal service associated with that process.
It is not simply a charge for completing one form or for an attorney appearing in court for a few minutes.
Why is there a litigation fee at all?
Your Debt Counsellor assesses your financial position and prepares the recommendation. The Debt Counsellor cannot grant a court order.
The NCR's Debt Counselling Fee Guidelines 2018 recognise an Attorney Fee associated with the drafting of the court application and attendance at court. The attorney fee is to be agreed upfront with the attorney and communicated in writing to the consumer.
What legal work can be involved?
Depending on the scope of the agreement, the process can include reviewing the proposal and supporting information, drafting the application and affidavits, issuing and serving the matter, obtaining a hearing date, preparing the court pack, arranging representation, attending court, responding to postponements and dealing with opposition or additional affidavits.
Legal work therefore happens before, during and between court dates.
Is the fee calculated according to every email, document and appearance?
That depends on the agreement you signed.
Where the agreement provides for a fixed litigation fee, the amount is the agreed price for a defined legal service. It is not ordinarily reconciled afterwards by counting the number of emails sent, pages drafted, hours worked or court appearances required.
Some matters are straightforward. Others require considerably more work. Under a fixed-fee model, work falling within the agreed scope is not automatically charged again simply because the matter became more complicated, and the fee is not automatically reduced merely because fewer steps were necessary.
The written agreement determines the scope, exclusions and any circumstances in which a further cost may arise.
What if no legal process ever happened?
This is different from a matter that reached the legal stage but later became complicated or was discontinued.
The National Consumer Tribunal has recently emphasised in National Credit Regulator v Bongolethu Gedeza that legal fees should not be retained where the debt review never advanced to a stage at which those legal services could be rendered.
A genuine "no legal work was ever capable of being performed" query should therefore be investigated against the fee agreement, the work actually done and the applicable NCR guidance.
Does the fee cover every legal problem you may experience while under debt review?
No. A litigation fee connected with the Debt Counsellor's section 86 application should not be confused with unlimited legal insurance.
For example, a summons issued by a credit provider is separate enforcement litigation. Whether any assistance with that proceeding is included depends on the wording of the agreement. You may need separate representation.
Does paying the fee guarantee the order?
No. The fee pays for the agreed legal service; it cannot purchase a judicial result. The Magistrate decides the application.
Key legal references
· NCR Debt Counselling Fee Guidelines 2018.
· National Credit Act 34 of 2005: sections 86 to 88.
· National Credit Regulator v Bongolethu Gedeza (NCT/444880/2026/137(1), National Consumer Tribunal, 15 September 2026), particularly the findings concerning fees for legal services not rendered or not capable of being rendered.
Household & Affordability
PART 3 - HOUSEHOLD, MARRIAGE AND AFFORDABILITY
Why Does My Marital Status - and My Spouse's Income - Matter in Debt Review?
Your marital status can affect how a debt review application must be prepared.
Sometimes both spouses must be part of the debt review application. In other cases, only one spouse is under debt review, but information about the other spouse may still be needed to establish a realistic household budget.
The first question is therefore: How are you legally married?
Married in community of property
If you are married in community of property, you and your spouse generally have one joint estate.
For debt review purposes, that means the financial affairs of the joint estate cannot properly be assessed as though each spouse has a completely separate estate. The NCR's debt-review assessment guidance recognises the need for a joint approach where spouses are married in community of property.
In practice, the debt review application should ordinarily be a joint application dealing with both spouses and the joint estate.
The legal significance of the joint estate is also recognised in the Matrimonial Property Act 88 of 1984. In Shackleton Credit Management (Pty) Ltd v Deolall and Another, the High Court again confirmed that a creditor may proceed against both spouses where liability is sought against a joint estate.
"But the debt is only in my name"
That does not necessarily mean the other spouse can be ignored.
Where spouses are married in community of property, the joint estate may be affected by the liabilities and by the court order. The application therefore needs to reflect the correct matrimonial regime and the people whose legal interests are affected.
"But we are separated"
Separation does not itself dissolve a marriage.
You remain legally married until a court grants a decree of divorce. Section 3 of the Divorce Act 70 of 1979 provides for the dissolution of a marriage by a court through a decree of divorce.
So if you are married in community of property but have separated, the existing matrimonial property regime remains legally relevant until the marriage is dissolved.
Married out of community of property
For an ordinary South African civil marriage, a couple who wishes to marry out of community of property ordinarily enters into an antenuptial contract (ANC) before the marriage and registers it in the Deeds Registry.
If you did not enter into a valid ANC and no other lawful exception applies, do not simply assume that you are married out of community of property. Ask for the position to be confirmed if you are unsure.
If you are married out of community of property - whether with or without accrual - you generally have separate estates. One spouse can therefore ordinarily be under debt review without the other spouse automatically becoming a co-applicant.
So why does the Debt Counsellor need information about your spouse?
Because your Debt Counsellor still needs to understand your true household budget.
This is where the concept of a spousal contribution becomes important.
If you and your spouse share rent, groceries, electricity, insurance, transport or other household expenses, the Debt Counsellor needs to establish what portion of those expenses is genuinely borne by you.
For example, if total household expenses are R30 000 per month and your spouse contributes R18 000 toward those expenses, it would not be accurate to record the full R30 000 as your personal monthly expenditure.
Does your spouse's salary become available to pay your creditors?
No. A request for information about your spouse does not automatically make your spouse a debt review applicant and does not mean that the spouse's entire income is available to your creditors.
The purpose is to calculate the household position accurately.
Section 23 of the Matrimonial Property Act recognises that spouses married out of community of property may be liable to contribute towards the necessities of the joint household in proportion to their financial means. That principle helps explain why the household contribution can be relevant even where only one spouse is under debt review.
Why might your spouse be asked to sign a contribution affidavit?
The court may require a spousal or partner contribution affidavit where the household contribution needs to be confirmed for court purposes.
That affidavit does not make your spouse a party to your debt review simply by being signed. It records relevant facts about the household budget and the contribution made toward shared expenses.
What if your spouse refuses to provide a payslip?
Tell your Debt Counsellor. The goal is to establish the household position, not to force a spouse into debt review.
Depending on the facts, other evidence may help demonstrate how expenses are shared, including bank statements, proof of who pays particular accounts or an affidavit confirming the contribution.
Do not ignore the request. Explain the difficulty so that the Debt Counsellor can decide what evidence can responsibly be placed before court.
In short
Married in community of property: the debt review should ordinarily deal jointly with both spouses and the joint estate.
Married out of community of property: one spouse may ordinarily apply alone, but the other spouse's contribution to shared household expenses may still be relevant.
Separated: you are still married until a divorce order is granted.
Spousal contribution: it is about the household budget, not about making your spouse responsible for your debt.
Key legal references
· Matrimonial Property Act 88 of 1984: sections 17 and 23.
· Divorce Act 70 of 1979: section 3.
· Deeds Registries Act 47 of 1937: provisions concerning registration of antenuptial contracts.
· Shackleton Credit Management (Pty) Ltd v Deolall and Another (705/2022) [2026] ZANWHC 153.
· NCR debt-review assessment / Task Team guidance dealing with household income and joint applications.
What Happens If My Financial Circumstances Change During Debt Review?
Debt review is based on your financial circumstances. But life changes.
You may lose a job, receive an increase, take maternity leave, separate from a spouse, relocate, have a new dependant or face an unavoidable new expense. If a material change occurs, tell your Debt Counsellor as soon as possible.
Why does the change matter?
The Debt Counsellor's recommendation is based on an assessment of your financial means and obligations. Section 87 requires the Magistrate to consider those financial circumstances when deciding the court application.
If the figures placed before court no longer reflect reality, the Debt Counsellor may need to decide whether the proposal remains affordable and responsible.
Does every small change require a new application?
No. The issue is materiality.
A minor salary fluctuation or ordinary monthly variation in groceries may not change the underlying assessment. A retrenchment, substantial salary reduction, divorce, major medical expense or large increase in unavoidable household costs may do so.
What can happen before the order is granted?
Depending on the change, your Debt Counsellor and VDH may need to obtain updated documents, amend the repayment proposal, communicate revised terms, prepare a supplementary affidavit or ask you to confirm the new information under oath.
The correct step depends on when the change occurred and how significantly it affects the proposal.
What if your income improves?
Tell your Debt Counsellor. A material improvement may affect the amount reasonably available for debt repayment or the continued basis for the original proposal.
Debt review is not intended to freeze an inaccurate financial position indefinitely. The court should receive a fair picture of your actual means.
What if your income falls?
Raise it early. Do not simply reduce the debt review payment on your own.
If the order has not yet been granted, the Debt Counsellor may be able to reassess the proposed terms before the court decides the application.
If a court order has already been granted, a different legal question arises because the existing order remains binding until it is lawfully changed. That is dealt with in the next article.
Key legal references
· National Credit Act 34 of 2005: sections 79, 86 and 87.
· National Credit Regulations, 2006: regulation 24.
· Debt Counselling Regulations, 2012: regulation 2.
What Happens If I Can No Longer Afford My Debt Review Payment?
If your debt review payment has become unaffordable, the most important thing is to act before the problem turns into repeated default.
Do not simply decide to pay a lower amount or stop paying without first speaking to your Debt Counsellor.
Why does the stage of the matter matter?
There is a major difference between a proposed payment before the court order and a payment obligation already recorded in a granted court order.
If the application is still pending, your Debt Counsellor may need to reassess your financial position and decide whether a revised proposal can responsibly be placed before court.
If an order has already been granted, the court order remains legally binding unless and until it is lawfully changed or another legally recognised event occurs.
Can the Debt Counsellor simply change a granted order on the system?
No. An administrative update does not amend a court order.
Where a genuine, material change means the granted terms can no longer be maintained, legal advice may be necessary to determine whether a variation or another court process is competent on the facts.
Why is it dangerous to reduce payments without advice?
Section 88(3) of the National Credit Act permits enforcement in circumstances where a consumer defaults on an obligation under a court-ordered debt rearrangement.
The Constitutional Court in Ferris and Another v FirstRand Bank Limited and Another held that once the restructuring order had been breached, the credit provider was entitled to enforce the underlying loan without a further section 129 notice.
The Supreme Court of Appeal applied the same principle to vehicle finance in Jili v FirstRand Bank Ltd t/a Wesbank
What should you do?
Tell your Debt Counsellor what changed, when it changed and what you can now realistically afford. Provide updated proof of income and evidence of the material new expense or event where available.
Do not wait until several payments have been missed before asking for help.
In short
A change in affordability is a problem to manage, not something to hide. The earlier your Debt Counsellor knows, the more accurately the legal and practical options can be considered.
Key legal references
· National Credit Act 34 of 2005: sections 87 and 88(3).
· Ferris and Another v FirstRand Bank Limited and Another (CCT 52/13) [2013] ZACC 46; 2014 (3) SA 39 (CC).
· Jili v FirstRand Bank Ltd t/a Wesbank (763/2013) [2014] ZASCA 183; 2015 (3) SA 586 (SCA).
· Absa Bank Limited v Frans (2169/2024) [2025] ZAWCHC 154.
Enforcement & Urgent Problems
PART 4 - ENFORCEMENT AND URGENT PROBLEMS
Can a Credit Provider Repossess My Car While I Am Under Debt Review?
Being under debt review provides important protections, but it does not mean that a vehicle can never be repossessed.
The answer depends on the stage of your debt review, whether the vehicle agreement is included, whether a court application or order exists and whether you are complying with the applicable payment terms.
First: do not panic, but do not ignore it
A repossession agent contacting you is not the same thing as a Sheriff acting under a court order.
If you have not voluntarily surrendered the vehicle, a credit provider cannot simply use self-help to forcibly repossess it. Judicial repossession ordinarily requires the appropriate court process.
If a repo or collection agent contacts you
Ask for the person's full name, company, the credit provider represented, the account/reference number, written confirmation of why they are contacting you and a copy of any court order they say authorises repossession.
Do not hand over your keys merely because you are being pressured to do so.
If you have received a summons
A summons does not itself mean that a court has already ordered the return of your vehicle. It tells you that the credit provider is seeking relief from the court.
Send the complete summons, including every page and annexure, to your Debt Counsellor immediately. Separate legal representation may be required because enforcement proceedings are not automatically the same mandate as the Debt Counsellor's section 86 application.
If a Sheriff arrives with a court order
That is different from a collection agent asking you to surrender the vehicle.
Obtain a copy of the documents and do not obstruct the Sheriff. Contact your Debt Counsellor immediately so that the order and procedural history can be assessed.
Be careful about voluntary surrender
Section 127 of the National Credit Act regulates voluntary surrender. If you are asked to sign a document headed Voluntary Surrender, Consent to Repossession, Termination or Hand-over, read it carefully and obtain guidance before signing if you do not understand the consequences.
Do not sign a voluntary surrender simply to make persistent calls stop.
Does debt review protect the vehicle agreement?
Section 88(3) restricts enforcement while the statutory protections apply, but those protections are not permanent in every circumstance.
If you default on a granted rearrangement order, the legal position can change materially. In Jili v FirstRand Bank Ltd t/a Wesbank, the Supreme Court of Appeal upheld enforcement and return of a motor vehicle after default under the debt rearrangement order.
What if the vehicle account was excluded?
If the vehicle agreement is not part of the debt review order, do not assume that the protection applying to your other accounts applies to the vehicle as well. Find out why the agreement was excluded, whether enforcement has commenced and what payment is required.
What evidence should you keep?
Keep WhatsApp messages, emails, SMSs, voice notes, names and telephone numbers, letters, summonses, court orders and Sheriff documents. Do not delete them. They can be important in determining exactly what has happened.
Tell your Debt Counsellor urgently if
· you have missed or short-paid a debt review payment;
· the vehicle is missing from the debt review application or order;
· you have received a section 129 notice or summons;
· someone says the agreement has been terminated;
· a court order for return has already been granted;
· a Sheriff has contacted you; or
· you previously signed a surrender document.
Key legal references
· National Credit Act 34 of 2005: sections 86, 88, 127, 129, 130 and 131.
· Ferris and Another v FirstRand Bank Limited and Another [2013] ZACC 46.
· Jili v FirstRand Bank Ltd t/a Wesbank [2014] ZASCA 183.
· Absa Bank Limited v Frans [2025] ZAWCHC 154.
I Received a Summons While Under Debt Review - What Should I Do?
If you receive a summons while under debt review, do not ignore it and do not assume that the words "under debt review" automatically make the summons invalid.
A summons is the start of court proceedings in which the credit provider seeks an order. It is not itself the final judgment.
What should you do first?
Send the complete summons to your Debt Counsellor immediately. Include every page, annexure, service document and any earlier notice you received.
Tell the Debt Counsellor when and how it was served. Time periods in litigation can be strict, so the service date matters.
Why can a summons exist if you are under debt review?
The legal answer depends on the timing and status of the particular credit agreement.
Section 86(2) provides that a debt review application does not apply to a particular credit agreement if, at the time of the debt review application, the credit provider had already proceeded with the enforcement steps contemplated in section 130.
The Supreme Court of Appeal in Nedbank Ltd and Others v National Credit Regulator and Another analysed the relationship between debt review and enforcement. The legislation was later amended, including section 86(2) and section 86(10), so the current statutory wording and the actual dates in your matter must be considered.
What dates matter?
The attorney assessing the summons may need to establish:
· when you applied for debt review;
· when the credit provider received notice;
· whether and when a section 129 notice was delivered;
· when enforcement proceedings commenced;
· whether the particular account was included in the debt review;
· whether the debt review application had been filed in court;
· whether a court order had already been granted; and
· whether you were complying with the arrangement.
Does VDH automatically defend the summons?
No. VDH represents the Debt Counsellor in the section 86 debt review court application. A summons issued by a credit provider is separate enforcement litigation against you.
Your Debt Counsellor may refer the matter for legal assessment and can help you understand the debt review history, but you may need a separate attorney mandate to defend the action.
Should you contact the credit provider directly and make a new arrangement?
Do not make an uninformed decision under pressure. A separate arrangement may affect the debt review, the proposal and the way the other accounts are being paid.
First make sure your Debt Counsellor has seen the summons and that the legal position has been assessed.
In short
A summons requires action, but it does not mean the credit provider has already won. Send it immediately, preserve the service information and allow the legal position to be assessed against the actual timeline.
Key legal references
· National Credit Act 34 of 2005: sections 86(2), 86(10), 88, 129 and 130.
· Nedbank Ltd and Others v National Credit Regulator and Another [2011] ZASCA 35.
· Collett v FirstRand Bank Ltd and Another [2011] ZASCA 78, read with the later statutory amendments.
What Happens If I Miss a Debt Review Payment?
A missed or short-paid debt review payment should be dealt with immediately.
Do not wait for the credit provider to contact you before telling your Debt Counsellor.
Why is a missed payment serious?
Debt review does not erase the underlying debt. The process restructures how qualifying obligations are repaid.
Where a court order has been granted, section 88(3)(b)(ii) allows enforcement when the consumer defaults on an obligation under the rearrangement order.
The Constitutional Court in Ferris held that once the restructuring order had been breached, the credit provider was entitled to enforce without a further section 129 notice. The Supreme Court of Appeal reached the same essential conclusion in Jili in the context of vehicle finance.
What if you later catch up the arrears?
Do not assume that paying the shortfall later automatically reverses every legal consequence.
In Absa Bank Limited v Frans, the High Court considered the effect of default and subsequent catch-up payments and held that later payments did not automatically reinstate the rearrangement in relation to the affected agreement.
That is why prompt action matters.
What should you do if you know you will miss a payment?
Contact your Debt Counsellor before the payment date where possible. Explain why the problem has arisen, whether it is temporary or permanent and what amount you can realistically pay.
If the difficulty reflects a lasting change in affordability, the Debt Counsellor may need to consider whether the existing proposal or order remains sustainable and whether legal advice is required.
Do not stop the entire PDA payment because you have a dispute with one account
A dispute concerning one credit provider does not automatically justify withholding payment from every other credit provider under the arrangement.
Speak to your Debt Counsellor before changing how you pay.
Key legal references
· National Credit Act 34 of 2005: section 88(3).
· Ferris and Another v FirstRand Bank Limited and Another [2013] ZACC 46.
· Jili v FirstRand Bank Ltd t/a Wesbank [2014] ZASCA 183.
· Absa Bank Limited v Frans [2025] ZAWCHC 154.
What Is a Section 129 Notice and Why Should I Not Ignore It?
A section 129 notice is a notice issued under the National Credit Act when a consumer is in default under a credit agreement. It generally forms part of the statutory process that can precede enforcement litigation.
It is important, but it is not the same thing as a court order or judgment.
What does section 129 do?
Section 129(1) allows a credit provider to draw the default to the consumer's attention and to propose referral to one of the dispute-resolution or debt-counselling mechanisms listed in the Act before enforcement proceedings are commenced, subject to the further requirements in section 130.
Why does the timing matter during debt review?
The relationship between section 129 and debt review is technical and depends on the stage of the particular account.
Section 86(2) now provides that a debt review application does not apply to a particular agreement if, at the time of the application, the credit provider had already proceeded with the steps contemplated in section 130 to enforce it.
This is one reason why a section 129 notice should never simply be filed away without telling your Debt Counsellor.
What if a debt review court order already exists?
Section 129(2) provides that the section 129(1) notice procedure does not apply to a credit agreement that is already subject to a debt restructuring order, or to proceedings that could result in such an order.
Where a granted debt review order has been breached, the enforcement analysis is therefore different. Ferris confirms that further section 129 notice is not necessarily required before enforcement of a breached rearrangement order.
What should you do?
Send the notice to your Debt Counsellor immediately, together with the envelope or delivery information where available. Confirm whether the account is part of your debt review and whether any payment problems exist.
Do not assume that the notice is harmless because you are under debt review, and do not assume that it means judgment has already been granted.
Key legal references
· National Credit Act 34 of 2005: sections 86(2), 88, 129 and 130.
· Ferris and Another v FirstRand Bank Limited and Another [2013] ZACC 46.
· Nedbank Ltd and Others v National Credit Regulator and Another [2011] ZASCA 35.
After the Order
PART 5 - IF SOMETHING GOES WRONG, AND HOW DEBT REVIEW ENDS
My Debt Review Application Was Dismissed or an Account Was Excluded - Is This the End of My Debt Review?
Not necessarily - but dismissed and excluded have very different legal consequences.
If the whole debt review application is dismissed, the legal effect can be serious and should be assessed immediately.
If one credit agreement is excluded, the rest of the debt review may continue while that particular account is dealt with separately.
The first question is therefore: What exactly did the Magistrate order?
Was the matter postponed, removed or dismissed?
These words are not interchangeable.
Postponed: The matter remains pending and will be dealt with at a later stage or date after the required issue is addressed.
Removed from the roll / not enrolled: The matter was not heard on that particular date. The reason must be established and the necessary step taken before it proceeds again.
Dismissed or rejected: The court has made an order disposing of the application. This is a substantive legal event, not merely a scheduling issue.
What is the effect of dismissal?
Section 88(1)(b) provides for the effects of debt review to end where the court has determined that the consumer is not over-indebted or has rejected the Debt Counsellor's proposal or the consumer's application.
Does dismissal mean nothing can be done?
Not necessarily. The correct response depends on why the application was dismissed, the wording of the order and what has happened since.
Depending on the facts, legal advice may be required about rescission, re-enrolment, appeal, correction or another lawful process.
Do not simply assume that you can carry on as though the dismissal never happened. Equally, do not assume that all possible remedies have disappeared before the order has been assessed.
What does it mean if one account was excluded?
That is different from dismissing the entire application.
Section 86(2) operates in relation to a particular credit agreement where enforcement had already progressed to the statutory point described in that section before the debt review application. The broader debt review can continue in relation to other qualifying agreements.
The Supreme Court of Appeal in Nedbank Ltd and Others v National Credit Regulator and Another recognised the account-specific nature of these provisions.
Why might an account be excluded?
Possible reasons include prior enforcement proceedings, a legal problem with inclusion, an agreement by the relevant parties to deal with the account separately, the account being paid up, or another case-specific reason.
You need to know why the account was excluded. The word "excluded" alone does not tell you what happens next.
Does an excluded debt disappear?
No. Exclusion does not cancel the debt.
It ordinarily means that the account is not being rearranged by that debt review court order. The contractual position and any existing enforcement process therefore need separate attention.
If the excluded account is a vehicle or home loan, deal with it urgently because the consequences of default on secured credit can be significant.
Should you stop payments?
Do not change your payments merely because you have heard that the application was dismissed or an account was excluded. Ask your Debt Counsellor what the order means, which accounts remain affected and what payment is now required.
Key legal references
· National Credit Act 34 of 2005: sections 86(2), 87 and 88(1)(b).
· Motor Finance Corporation v Herbert (16098/2011) [2012] ZAWCHC 35.
· Nedbank Ltd and Others v National Credit Regulator and Another [2011] ZASCA 35.
· Phaladi v Lamara and Another (20480/2017 & 20481/2017) [2018] ZAWCHC 1; 2018 (3) SA 265 (WCC).
Why Doesn't My Credit Provider Statement Match My Debt Review Court Order?
Seeing a different instalment, balance or interest figure on a credit-provider statement can be alarming, especially where you have a granted debt review court order.
A difference should be investigated, but it does not automatically mean that the court order is defective or that another court application is required.
Start with three questions
1. Is the court order itself wrong?
Compare the order with the proposal and repayment schedule that were placed before the court.
2. Is the payment being distributed incorrectly?
Check the PDA statement, payment instruction and the account number to which the money is being allocated.
3. Has the credit provider captured or allocated the payment incorrectly?
The order may be correct while the account administration is wrong.
Why can balances differ?
Balances move over time because of payments, interest, fees, the date on which the balance was calculated and the way the credit provider's system displays the account.
A minor difference in a current balance is therefore not, by itself, proof that the court order is being ignored.
When is it an administrative problem?
Examples include an incorrect PDA allocation, a wrong account number, a credit provider allocating a payment to the wrong sub-account, a captured payment instruction error or a minor rounding issue.
Where the court order is correct, these problems should usually be addressed administratively first.
When might legal intervention be required?
Refer the issue through your Debt Counsellor where the order itself appears to contain a materially wrong interest rate, materially wrong instalment, missing account, incorrect repayment term or wording that makes the order impossible to implement.
A handwritten amendment by a Magistrate or an additional condition may also require legal interpretation.
What if the credit provider simply refuses to implement the order?
Regulation 2(4) of the Debt Counselling Regulations requires a credit provider to comply with and implement the terms of the court order within ten working days of receipt.
Provide the Debt Counsellor with the order, the relevant statement, proof of payment and PDA distribution information. If the issue cannot be resolved administratively, it can then be considered as a legal or compliance issue.
Key legal references
· Debt Counselling Regulations, 2012: regulation 2(3) and 2(4).
· National Credit Act 34 of 2005: sections 86 to 88.
Can I Just Cancel or Withdraw From Debt Review?
You may have seen advertisements promising to "remove the debt review flag" or "cancel debt review" quickly.
The legal position is more complicated.
Debt review is a statutory process. Once you have entered it, you cannot assume that it can be cancelled simply because you have changed your mind.
Why does the stage of the process matter?
The legal route depends on what has already happened.
Important questions include whether you validly applied for debt review, whether the Debt Counsellor has made the statutory determination, whether the matter has been referred to court and whether a court order has already been granted.
What did Van Vuuren v Roets decide?
In Van Vuuren v Roets and Others, the Full Court considered attempts to leave debt review and held that the National Credit Act does not create a general free-standing procedure allowing a consumer who has been determined to be over-indebted simply to ask a court to declare that the consumer is "no longer over-indebted" in order to escape the process.
The judgment materially changed the industry's approach to withdrawal and led to revised NCR guidance.
What does the NCR currently say?
The NCR issued revised Withdrawal from Debt Review Guidelines 01/2021, followed by an explanatory note in 2022. Those documents should be read together with Van Vuuren and the actual stage of the consumer's matter.
The NCR has also warned consumers about businesses charging large upfront fees for "debt review removal" services where removal is not legally available. Its Circular 2 of 2025 specifically cautions consumers about such services.
What if a court order has already been granted?
Where a debt rearrangement order has been granted, the normal route out of debt review is through the statutory clearance process under section 71 once the legal requirements have been met.
Phaladi v Lamara emphasised that the debt review framework is a statutory scheme and that consumers subject to a rearrangement cannot simply obtain an invented judicial remedy because they later consider themselves financially recovered.
Can a granted debt review order simply be rescinded because you no longer want debt review?
Do not assume so. A court order cannot simply be erased because the consumer's preference has changed. Whether a rescission remedy exists depends on recognised legal grounds and the facts of the order, not merely a desire to leave debt review.
What if you are unhappy with your Debt Counsellor?
That is different from wanting to end debt review. The NCR's guidance allows for transfers between Debt Counsellors in appropriate circumstances. A transfer changes the Debt Counsellor administering the matter; it does not automatically restart or cancel the underlying debt review.
Be cautious about "removal" services
Before paying anyone to remove a debt review listing, ask:
· What exact legal process are you proposing?
· Why is it legally available in my specific circumstances?
· What happens if it fails?
· Are you registered where registration is required?
· When is the fee payable?
The NCR's 2025 circular reminds consumers that section 126A(3) regulates services offered to improve credit records or remove information and prohibits upfront payment before those services have been fully performed.
In short
Do not treat "cancel", "withdraw", "transfer", "rescission" and "clearance" as the same thing. They are different processes with different legal consequences.
Ask your Debt Counsellor to confirm the exact status of your matter before paying anyone for a removal service.
Key legal references
· National Credit Act 34 of 2005: sections 71, 86 and 88.
· Van Vuuren v Roets and Others (37407/2018) [2019] ZAGPJHC 286; 2019 (6) SA 506 (GJ).
· Phaladi v Lamara and Another [2018] ZAWCHC 1.
· NCR Withdrawal from Debt Review Guidelines 01/2021 and explanatory note issued in 2022.
· NCR Circular 2 of 2025: Debt Review Removal.
· National Credit Act 34 of 2005: section 126A(3).
When Does Debt Review Actually End?
A debt review court order is an important milestone, but it is not the end of debt review.
The order sets the legal repayment framework. The debt review continues while the applicable obligations are being satisfied.
What normally ends the process?
Section 71 of the National Credit Act provides for a clearance certificateonce the statutory requirements have been met.
Your Debt Counsellor is responsible for determining whether you qualify for clearance and, where you do, issuing the prescribed certificate.
Must every debt be paid in full before you can be cleared?
Not necessarily.
Under the current section 71, a consumer may qualify where all obligations under every agreement subject to the rearrangement have been satisfied orwhere the statutory early-clearance requirements are met.
Those early-clearance provisions allow for certain long-term agreements - most importantly a qualifying mortgage agreement - to remain in place where the consumer demonstrates the required financial ability, there are no arrears on the rearranged long-term agreement and the other credit agreements included in the rearrangement have been settled in full.
The requirements must be checked against your actual order and accounts.
What is a Form 19?
Form 19 is the prescribed clearance certificate used to record that the section 71 requirements have been met.
Once issued, the Debt Counsellor must file the certificate with the relevant register and credit bureaux in accordance with section 71. The credit bureaux must then remove the debt-review information specified in the Act.
What if the Debt Counsellor refuses to issue a clearance certificate?
Section 71(3) allows you to apply to the National Consumer Tribunal to review a refusal or failure to issue the certificate. The Tribunal may order the Debt Counsellor to issue it if you are legally entitled to one.
Is paying the last PDA instalment automatically the same as clearance?
No. The Debt Counsellor still needs to verify settlement and compliance with the statutory requirements and issue the clearance certificate.
Keep settlement letters, paid-up statements, the court order, PDA records and your eventual Form 19.
Does the court order disappear from history?
Section 71 regulates the removal of the debt-review record and specified default information from credit-bureau records once a valid clearance certificate is received. That is different from pretending that the historical court process never occurred.
What if only the home loan remains?
Do not assume you must remain under debt review until the final mortgage instalment decades later. The amendments to section 71 were specifically designed to allow earlier rehabilitation in qualifying circumstances where the remaining long-term debt is properly maintained and the other rearranged obligations have been settled.
Your Debt Counsellor must assess whether the statutory test is satisfied in your case.
Key legal references
· National Credit Act 34 of 2005: section 71.
· National Credit Regulations, 2006: regulation 27 and Form 19.
· Phaladi v Lamara and Another [2018] ZAWCHC 1.
· Van Vuuren v Roets and Others [2019] ZAGPJHC 286.