Restructuring of Accounts
“86. (1) A consumer may apply to a Debt Counsellor in the prescribed manner and form to have the consumer declared over-indebted”
In terms of section 86 of the National Credit Act, 34 of 2005 credit agreements can be rearranged to assist consumers who are struggling to pay their commitments. The consumers living expenses will be taken into account, and a registered Debt Counsellor will discuss negotiating lower instalments and interest rates on your behalf. The debt counselling process is a legal process which officers the consumer protection against repossession and legal action. Once a consumer applies for debt counselling their assets are protected while they make regular payment.
A debt counsellor who has accepted an application in terms of this section must contemplated in subsection (4)(b), must determine, in the prescribed manner and within the prescribed time.“