Can You Exit Debt Review Early? | How to Do It | Why This Can Be to Your Detriment!

Debt review is a vital protection mechanism for South Africans facing financial distress. It offers structured repayments, shields you from legal action, and helps you rebuild your financial life. But what happens if your situation improves and you want to exit debt review early?

Yes, you can exit debt review early. However, doing so comes with serious legal and financial consequences that every consumer must understand before making a decision.
🛑 What Is Debt Review?
Debt review is a formal process governed by the National Credit Act (NCA) and regulated by the National Credit Regulator (NCR). It’s designed to help over-indebted consumers repay their debts through a restructured plan, while protecting them from creditor legal action.
✅ How to Exit Debt Review Early

1. Before a Court Order Is Granted
If your debt counsellor has not yet obtained a court order confirming your over-indebted status, you may voluntarily withdraw from the process.

Steps:
• Notify your debt counsellor in writing.
• Be prepared for administrative fees if Form 17.2 has already been issued.
• Understand that creditors may resume collections immediately.

2. After a Court Order Is Granted
Once a court order is in place, you must either:

• Settle all debts included in the debt review, or
• Apply to court to declare that you are no longer over-indebted.

In both cases, your debt counsellor must issue a Clearance Certificate (Form 19) once all obligations are met. This certificate allows credit bureaus to remove the debt review flag from your profile.
⚠️ Critical Warning: What Happens When You Exit Early
Exiting debt review early—without settling all debts—can have serious consequences:

• All original credit agreements are reinstated. This means your accounts will reflect the full outstanding balances, including any missed payments prior to debt review.
• You will be in arrears. Technically, your debts are immediately due and payable under the original terms.
• You lose legal protection. Creditors are no longer bound by the debt review process and may initiate legal action, including, but not limited to:

1.  Repossessing your vehicle
2.  Foreclosing on your property
3.  Issuing summonses or garnishee orders

This is why CureDebt strongly advises consumers to consult with a qualified debt counsellor before attempting to exit debt review early. The risks can be severe and irreversible.
⚖️ What the Law Says: National Credit Act & NCR Guidelines
According to the National Credit Act, consumers may exit debt review if they are no longer over-indebted. The NCR supports this process, provided:

• A magistrate confirms your financial recovery.
• All debts under review are settled or restructured.
• A clearance certificate is issued by your debt counsellor.

1️⃣ Confirm if a court order has been issued
2️⃣ If not, request withdrawal from your debt counsellor
3️⃣ If yes, settle debts or apply to court to rescind the order
4️⃣ Obtain a clearance certificate (Form 19)
5️⃣ Ensure credit bureaus update your profile
💬 Final Thought: Think Before You Exit Debt Review
While exiting debt review early may seem appealing, it’s essential to understand the legal and financial risks. Without full settlement, you could face arrears, asset loss, and legal action from creditors.

CureDebt is here to guide you through every step, ensuring your decisions are informed, compliant, and in your best interest. 

Need help reviewing your options? Contact CureDebt today for expert advice.

✅ CureDebt is NCR-accredited, legally compliant, and rated 4.98 stars on Hello Peter by REAL South Africans who’ve taken back control.