Thanks for the question.
Voluntary surrender is when you voluntarily surrender your car or any other financed asset back to the bank for them to sell in order to recover the outstanding debt. The Credit Act makes mention of your right as a consumer to voluntarily surrender your goods and then the bank must sell it for the best price reasonably obtainable. This in most cases is not advisable as they usually sell your assets at an auction for far less than what you owe.
You can consider going under sequestration which will also see you lose your assets. They will write up all your assets until there is enough to sell to cover all your debt. Not that this is what is referred to as “declaring yourself bankrupt”. It has a very negative connotation and will also prohibit you from getting access to any credit for a minimum of 5 years.
Debt review is your best option. You can settle your debt any time while under debt review to shorten the period.
How to cancel your debt review:
Cancellation is simple. A signed letter with an instruction for us to cancel is all it takes. A cancellation fee of 75% of the debt counsellor fee is payable if you have not yet paid your first instalment and we have calculated your payment plan.
When a debt review is cancelled, the original credit agreement is revived and the creditors are free to proceed to enforce their rights in terms thereof. That is why we urge consumers not to cancel without making prior arrangements with creditors. We often assist them to do so. First reach a written agreement with the creditor about the capitalisation of all payments in arrears and the resumption of the original instalments prior to cancelling your review and losing your protection.
What one must keep in mind is that debt review not only aims to get you debt free, but also to get you “rehabilitated” into the credit market again.
“Rehabilitation” is achieved once you’ve brought all arrears up to date and are able to satisfy all your credit agreements according to the original contractual rates. This includes the original interest rate, the original instalment amount etc., or when your debt has been settled. Should you exit the debt review prematurely, without reaching the point of “rehabilitation”, a clearance certificate cannot be issued.
I can almost guarantee you that your credit providers will litigate the moment you exit the debt review process.
Have a great day.