Debt Couciling

Debt Counselling Process !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

If a consumer is unable to make regular payments to his/her creditors under the agreement they have signed, can apply for debt counselling.

Consumers applies for debt counselling with the help of a debt counsellor or consultant in this case the consumer can apply for debt counselling on the website.

The consumer wil then be contacted by an Debt Counsellor and he will explain to the consumer what debt counselling is, the process and the fees.

The consumer completes debt counselling application form also availible on the site.

A form 16 will then be sent out tou the NCR

The consultant will check that the form 16 is completed correctly and all supporting documents have been provided.

The details on the form 16 are captured by the office admin. Within 5 days (normally sooner) all creditors are notified with form 17.1 that consumer is applying for debt counselling. The debt counselling application is now in process. No legal action from creditors is possible. A consumer can still apply for debt counselling if a Section 129 or 130 Notice is issued by creditor.

The debt counselling process takes 60 working days. The creditor has 5 business days to confirm customer account details to debt counsellor. This is checked against what the consumer presented to debt counsellor. After 5 days, the creditor is reminded to give feedback. Another 10 days grace is given to the creditor.

If the debt counsellor does not receive conformation from creditors, he may presume that the figure provided by consumer are correct. The debt counsellor will now determine if consumer is over indebt.

The debt counsellor will now prepare a debt restructuring proposal to the creditors. The proposal must be sent 25 days from date of application. All creditors have 10 days to respond. If there is no response, the creditors will get a reminder and...