Here’s what you need to know:

If you’ve heard about debt review, you may be wondering what part the courts play in the process.

Many people know that debt review helps South Africans who are struggling with too much debt, but not everyone realises that it also involves a legal process. Once your debt counsellor helps you work out an adjusted realistic budget and proposes a new manageable repayment plan to your credit providers, the matter will go to court.

This is where a court order comes in and it plays a key role in protecting you, your plan, and your peace of mind.

Where the Court Order Comes In:

Debt review is there to help you if you're over-indebted (meaning you owe more money than you can pay each month). Your debt counsellor will help you adjust your spending, create a budget, and suggest fair changes to your repayments, like paying smaller instalments or asking for lower interest.

Once all your credit providers have been appraised of the proposal, the next step is to get it made official by the court. Your debt counsellor and an attorney will help you through this legal part.

To get the court order, your case first needs to be set down at a magistrate’s court, and affidavits (sworn statements) must be submitted. One of these will be your confirmatory affidavit – a document where you confirm that the information is true and that you want to proceed with the debt review. You’ll need to sign this in front of a commissioner of oaths, like at a police station. It's important to know that it’s not the debt counsellor who officially decides if you’re over-indebted. The court looks at the facts and ultimately makes that official finding before granting the court order.

Once the court approves your debt restructuring plan, the court order gives you strong legal protection. It stops your credit providers from changing their minds later or trying to collect money in a different way.

If any of them take legal action against you, the debt restructuring court order can be used as a defence, and their case is likely to just be dismissed. This helps protect your assets and gives you peace of mind.

Debt review is a legal process under the National Credit Act, and all fees (including the legal ones) are clearly explained upfront and built into your monthly repayment. There are no hidden costs, and you don’t pay extra over and above the monthly repayment amount.

With the right help, including from the courts, you can get things back on track and work towards getting out of debt.