HOW DOES THE DEBT REVIEW PROCESS WORK? 1. When a consumer realise he/she is over-indebted or received a letter of demand (Sec 129 letter) from a Creditor, he/she can go to a Registered Debt Counsellor (DC) and apply for Debt Review; 2. The DC will then notify all Credit Providers and Credit Bureau of the application; 3. For the following 60 days, no Credit Provider can take any further steps to collect the money from the consumer – this is the debt freezing period; 4. During this 60 days period, the DC will negotiate with the Credit Providers in order to restructure the debt obligations to an affordable monthly installment; 5. During this 60 day period, the Consumer must pay the Credit Provider the maximum affordable amount, as advised by the DC; 6. If the Credit Providers consent to the rescheduled amounts as proposed by the DC, the Court will grant the Consent Order; 7. If the Credit Providers do not consent to the proposed amounts, the DC will do an application to the Magistrate’s Court and make a recommendation for debt-restructuring. The Court will then make a Court Order suitable for the Consumer; 8. If the debt are paid in full, the DC will issue a Clearance Certificate in order to uplift the Debt Review Order.
Posted on: Tue, 09 Jul 2013 09:49:27 +0000
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