I would like to find out what happens if you lose your job during the debt review situation? If I can’t pay the instalment anymore?
Thank you for your question.
It is crucial to contact your debt counsellor as soon as you suspect an issue with your payment.
Because the process is a legal agreement between you and your creditors, missing a payment means the agreement is broken and your creditors are within their rights to terminate the debt review and take legal action against you.
Your debt counsellor can negotiate with your creditors for leniency, but your creditors are not obliged to do so.
Your debt counsellor can also approach the court for a postponement for a few months, but it takes time.
If your creditors terminate the debt review and start to take legal action you can respond to the summons by showing up on the court date and explaining your situation, asking for leniency for a few months to find a job. Do not ignore the summons.
We do offer our clients Credit Linked Insurance, which helps to cover the debt in the event of retrenchment. Contact your debt counsellor to find out if you also have insurance to help during this time.
Hope this info helps.