Restructuring of Accounts
In terms of section 86 of the National Credit Act, 34 of 2005 credit agreements can be rearranged to assist consumer who are struggling to pay their commitments. The consumers monthly living expenses will be taken into account, and a registered Debt Counsellor can negotiate lower installments and interest rates. The debt counselling process is a legal process which officers the consumer protection against repossession and garnishee orders. Once a consumer applies for debt counselling their assets are protected while the make regular payment. Once the court order has been granted the consumer will be protected for the full period.
“86. (1) A consumer may apply to a debt counsellor in the prescribed manner and form to have the consumer declared over-indebted”
“6) A debt counsellor who has accepted an application in terms of this section must contemplated in subsection (4)(b), must determine, in the prescribed manner and within the prescribed time-“