Can Debt Review Still Help If One of Your Debts Has Reached Court?
Many people only start looking for help with their debts when things get scary.
Maybe you have received a nasty letter of demand, a summons to appear in court,
or even heard that a judgment has been granted against you. It is normal to feel afraid and unsure.
You might wonder if you have left it too late to get help through debt review.
The good news is that debt review can still help you, even if legal action has
already started on one of your debts.
But there are a few important things to understand about how it works if one of your debts has a
judgement. Once a court judgment has been granted for a specific debt, that particular account
cannot be directly included in your debt review proposal asking for smaller payments. This means
that your debt counsellor will probably not negotiate new terms for that one account. But that
does not mean you are stuck or without any options. Debt review can still help you with all your
other debts, and that can make a big difference to your ability to pay your debts and make ends meet.
When you enter debt review, your debt counsellor works with your credit providers to
reduce your monthly payments on all your other debts. This creates room in your monthly budget.
Even though the judgment debt cannot be restructured, you can now afford to make normal payments
(or negotiate a payment plan separately) for that debt. In other words, debt review helps you get
control over your total financial picture. You are still able to pay for your daily needs, service
the debt where the judgment has been granted, and slowly but surely pay off all your other debts in
a way that works.
If you have received a summons or know that one of your debts has already gone to court,
do not wait!
The sooner you speak to an NCR registered debt counsellor, the more support you can get.
A single court judgment does not mean you are out of options. Debt review can still play a
big role in helping you take back control and find a way forward.