Applying is the start of a defined legal process, not a single event. Knowing the sequence makes the waiting far less stressful, because you can tell the difference between a normal gap and something that has actually stalled.
1. Your application is received and creditors are notified
Once you apply under section 86 of the National Credit Act, your credit providers and the credit bureaus are notified that you have applied for debt review. This is what begins the formal process.
2. The affordability assessment (up to 30 business days)
The regulations give the debt counsellor 30 business days from receiving your application to make a determination: are you over-indebted, or not yet over-indebted but likely to struggle to meet your obligations in time? This is where your income, expenses and debts are worked through properly.
An important point that is widely misunderstood: the debt counsellor does not declare you over-indebted. They make a determination and prepare a proposal for how your debts could be restructured.
3. A proposal goes to your credit providers
The proposed restructured plan is put to the credit providers. They are not automatically obliged to accept it. The National Credit Act requires all parties — you, the credit providers and the debt counsellor — to participate in good faith, but agreement is not guaranteed.
4. The matter goes to court
It is the court that conducts a hearing, formally declares a consumer over-indebted, and grants relief by restructuring the credit agreement debt. This step is what gives debt review its legal weight — and it is also why the process takes longer than an informal arrangement.
5. You pay according to the plan
Once an arrangement or order is in place, you make a single monthly payment which is distributed to your credit providers. While you are complying, credit providers are restricted from taking further legal action on the debts covered by the plan.
6. Completion
When you have satisfied the obligations under the agreements covered by the re-arrangement, a clearance certificate is issued under section 71, and the detail of the debt review is expunged from the credit bureaus' records. Long-term debt such as a home loan is treated differently — section 71 allows an exit once the shorter-term restructured debts are settled, even where a bond continues.
How long does the whole thing take?
The assessment stage has a defined window (30 business days). The stages after that depend on creditor responses and court rolls, which is why no one can honestly quote you a single fixed timeline at the outset. Be cautious of anyone who does.
Frequently asked
How long does the affordability assessment take?
The regulations allow the debt counsellor 30 business days from receiving the application to make a determination.
Can creditors still contact me during the process?
Once you are under debt review and complying with the arrangement, credit providers are restricted from taking further legal action on the debts covered by it. If something feels wrong, raise it with your debt counsellor.
Is there a guaranteed timeline for the whole process?
No. Only the assessment stage has a set window. The rest depends on creditor responses and court processes.