12 Jun How to Apply for Debt Review in South Africa

Debt review is one of the most effective legal tools available to over-indebted South Africans – but knowing how to start the process can feel overwhelming. This guide walks you through every step of applying for debt review, from your first consultation to the moment your restructured repayment plan is confirmed.

Step 1: Confirm You Qualify

Debt review is available to any South African consumer who is over-indebted – meaning your combined debt repayments and living expenses exceed your monthly income. You do not need to be in default, blacklisted, or facing legal action to qualify. If you are struggling to make ends meet and debt is the reason, you likely qualify.

You should apply on a single basis or jointly if married in community of property. Debt review does not extend to juristic persons (companies) – only natural persons.

Step 2: Choose an NCR-Registered Debt Counsellor

Your debt counsellor must be registered with the National Credit Regulator. This is non-negotiable under the National Credit Act. You can verify a counsellor’s registration on the NCR website using their NCR number. True North Debt’s lead debt counsellor is Rynier Bernardo (NCRDC4171). Choosing the right company matters – see our guide on comparing debt review companies to know what to look for.

Step 3: Complete Form 16

Once you have chosen your debt counsellor, you will be asked to complete Form 16. This is your formal application for debt review. It requires a full and honest account of your financial situation, including:

• Your monthly income (gross and net)
• All monthly living expenses
• A complete list of all credit agreements, including loans, credit cards, store accounts, and your bond
• All outstanding balances and current monthly instalments
• Details of any legal action already taken by creditors

Accurate information here is essential. Your debt counsellor uses Form 16 to assess whether you qualify and to build your restructured repayment plan.

Step 4: Assessment of Over-Indebtedness

After receiving your Form 16, your debt counsellor carries out a formal assessment. They compare your income against your expenses and obligations to determine whether you meet the legal threshold for over-indebtedness. During this period, your credit profile receives a Code A flag, indicating an application is in progress.

If you are confirmed as over-indebted, you receive a formal notification and the process moves forward. To understand what each status code means as your application progresses, see our breakdown of debt review status codes.

Step 5: Creditors Are Notified

Your debt counsellor issues Form 17.1 to all your creditors, notifying them formally that you have applied for debt review. From this point, creditors may not take new legal action against you. This is one of the most important protections debt review offers – your assets and accounts are shielded while the process runs its course.

Step 6: Negotiations and Repayment Plan

Your debt counsellor negotiates with each of your creditors to reduce your monthly instalments and interest rates. The goal is to construct a single, affordable monthly payment that covers all your restructured obligations. This payment is then distributed to creditors by a registered Payment Distribution Agency. To understand the costs at this stage, see the full debt review fee structure.

Step 7: Court Confirmation (if Required)

In most cases, the restructured plan requires confirmation from the Magistrate’s court or the National Consumer Tribunal. Once the court grants the order, your plan is legally binding on both you and your creditors. Your credit profile is updated to Code D4 at this stage.

Step 8: Make Consistent Monthly Payments

From here, your job is to make your single monthly payment consistently. Debt review typically lasts between three and five years depending on your total debt. To plan what your payments might look like, use the debt review calculator.

Step 9: Receive Your Clearance Certificate

Once all your restructured debts are paid in full, your debt counsellor issues a Clearance Certificate (Form 19). This is submitted to all credit bureaus and the NCR Debt Help System to remove your debt review flag. You are then free to apply for credit again.

How Long Does It Take to Start?

The initial assessment and creditor notification process typically takes a few weeks from the date you submit Form 16. Protection from legal action begins as soon as your application is formally lodged. If you are wondering how debt review works in more detail, our dedicated how debt review works page provides a comprehensive overview.

Start Your Application Today

True North Debt is ready to guide you through every step. CONTACT US today and our NCR-registered team will assess your finances, negotiate with your creditors, and manage the process until you receive your clearance certificate.