Debt mediation, or sometimes referred to as debt arbitration, allows you and your creditors to come to an agreed upon arrangement that is beneficial to both parties. As debt mediation seeks to establish an agreement that settles the debt, the process is also known as debt settlement. Debt Mediation can allow relief from short-term debt or small portions of your existing debt. In certain cases, Debt Mediation has proven to be beneficial, in that consumers are able to pay back their debts through a new payment plan that is more manageable, even if they do not present as over indebted.
Find out moreDebt Review is a process that helps customers who are struggling to meet their debt obligations. A debt counsellor approaches your creditors and makes payment arrangements on your behalf, reducing your payments to a manageable amount monthly. How long the debt review process lasts depends on a number of things, such as the amount of debt that you have and how much you can afford to repay, amongst others. Typically, it takes 36 - 60 months to complete the process, be declared debt-free, and get your clearance certificate.
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This is a legal process that is governed by Section 87 (1)(a) of the National Credit Act 35 of 2005. This process is aimed to assist previously registered debt review clients that are no longer over-indebted and can manage to maintain their debt repayments. The Debt Review Removal Process as mentioned above is a legal process and you will need an excellent team of experts to get the debt review listing removed from your credit profile.The Initial Debt Review Flag on Your Credit Record does not mean that you are over-indebted and under debt review. It only shows that you have requested assessment by a Debt Counsellor and you are deemed to be over-indebted.
Find out moreYou can be removed from administration if there is good cause for a rescission of the admin order. The term 'good cause' means you can afford to pay the normal contractual instalments on your accounts. You can apply that the Magistrate Court in terms of the Magistrates Act, 1944 (ACT no. 32 of 1944) remove you. It is important to know that even once you have paid the creditors placed under administration in full, the administration order will not automatically be removed from your credit record. You still need to go to court to rescind the administration order and obtain a 74Q Rescission Court Order.
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Corporate debt restructuring is the reorganization of a distressed company's outstanding obligations to restore its liquidity and keep it in business. It is often achieved by way of negotiation between distressed companies and their creditors, such as banks and other financial institutions, by reducing the total amount of debt the company has, and also by decreasing the interest rate it pays while increasing the period of time it has to pay the obligation back. The purpose of a corporate debt restructuring is to restore liquidity to a company so that it can avoid bankruptcy. A corporate debt restructuring usually reduces the levels of debt, decreases the interest rate on the debt, and increases the time to pay the debt back.
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