DEBT COUNSELLING PROCESS

The Debt Counselling process can take up to 60 working days and includes the following steps:

Step 01

Contact Novation Financial Services (See Contact Details) where a debt counsellor or consultant will explain the process and fees.

Step 02

The Debt Counsellor or Consultant will then send you the application form with a list of documents required for the process.

Step 03

This Application Form (Form 16) has to be completed and signed by the consumer. It is important to take note that if you married in community of property, both spouses should complete and sign this Application Form.

Step 04

Return this Application Form, together with the supporting documentation to the Debt Counsellor or Consultant.

Step 05
 

After receiving your Application Form, we peruse the Application and sees to it that all the necessary information is completed and the correct documentation is received, after which we will do an assessment to establish whether you are indeed over-indebted.

Step 06

If over-indebted, we will proceed to step 6.

Step 07

We will notify all the credit providers (Form 17.1), the NCR and the Credit Bureaus of your successful application for debt review.

The credit providers will adjust their systems to show that you are currently under debt review. The application is now in process and no legal action can be taken by the creditors.

Step 08

The creditor is given certain time to submit the account details of the consumer to the debt counsellor. This is then compared with the accounts that the consumer has provided to the Debt Counsellor or Consultant. 

Step 09

If no feedback is received after a certain amount of days, the Debt Counsellor can accept that the figures supplied by the consumer is correct.

Step 10

Now the Proposal is finalized and sent to the Payment Distribution Agency and they then begin the distribution to theCredit Providers.

Step 11

Now the Proposal is finalized and sent to the Payment Distribution Agency and they then begin the distribution to theCredit Providers.

The Debt Counsellor will prepare a Debt Restructuring Proposal and send it to the Credit Providers.

Step 12

The Credit Providers has a certain amount of days to respond to this proposal.

Step 13

The matter is now ready for set down for hearing or a consent order is obtained. 

The applicant does not go to court. 

This is done by the debt counsellor/attorney on the consumer’s behalf.