Will I Lose My Assets When Going Under Debt Review?
In short, you will not lose your assets if you apply for Debt Review. As long as you keep making your payments under the new agreement, everything should be fine.
Applying for Debt Review can provide you with a lifeline to protect your hard-earned assets and regain control of your financial situation. It offers a comprehensive and effective solution to prevent the loss of your valuable assets, and can significantly improve your overall financial well-being. By adhering to a new payment agreement, you can find stability and peace of mind.
Financial distress can be overwhelming, especially when faced with the looming threat of repossession by credit providers. The fear of losing your home or vehicle can be paralyzing, but you don't have to face this alone, we are here to assist. It's crucial to take immediate action and reach out to a reputable debt counsellor as soon as you realize that you might start missing instalments or short pay your creditors. By doing so, you can access the expertise and support needed to navigate through these challenging times.
What happens when I miss monthly debt repayments?
When you fall behind on instalments, a credit provider might send you a Section 129 letter, which outlines your rights and options available to you. This document provides important information that can shape your financial future, it should not be ignored.
Take the time to carefully review the contents of the letter and fully comprehend the options it presents. One of the options in a Section 129 letter is your right to consult with a qualified debt counsellor and apply for debt review.
It is important to mention that you only have a very limited time to act on your rights as outlined in the letter.
How much time do I have after receiving a section 129 letter?
Once you receive the Section 129 letter, it is essential to act promptly. You only have 10 days to reach out to a Debt Counsellor to assess your financial situation and help you regain control. The debt counsellor will work closely with you to restructure your debts and place you under debt review.
Failure to consult with a Debt Counsellor within the specified 10-day period can have severe consequences. Creditors may escalate their actions by issuing a summons or initiating legal proceedings against you.
How will debt review protect my assets?
Debt review provides a lifeline to safeguard your assets while you work towards financial stability and receive the necessary debt relief.
During the Debt Review process, your Debt Counsellor will negotiate with your creditors on your behalf to develop a new repayment plan. This plan aims to make your debt more manageable by extending repayment terms, reducing interest rates, and consolidating your debts into one, affordable monthly payment.
The debt counselling company will obtain a consent order from either the magistrates court or the NCT. This consent order will give you the protection you need. No credit provider will be allowed to contact you or take any legal action, as long as you keep on making the new reduced payments.
Applying for Debt Review is a an empowering step towards safeguarding your assets when you experience financial difficulty.
By acting withing the 10 day period of receiving a Sect. 129 letter, you can regain control of your finances, alleviate the stress of potential asset repossession, and embark on a path towards long-term financial stability. It is advisable though, to contact us before you start missing instalments.
Sandton Debt Counselling is here to help you. Complete the call me back form or contact us on 087 550 11 22 for an obligation free assessment.