You can apply for debt review if you are unable to meet your debt commitments. However, in some cases, your finances may improve and you may wish to exit debt review. Whether or not you are able to exit will be determined by where you are in the process.
When you apply for debt review, a debt counsellor issues form 17.1(b) which protects you from further legal action by your creditors. Creditors must provide a certificate of balance and the debt counsellor then assesses whether you are over-indebted.
Once this assessment is completed, the debt counsellor issues form 17.2 (b). This includes a repayment plan which could include interest rate concessions from your creditors. Although this agreement still requires court approval, you can start the new repayment schedule. All credit bureaus are notified, and you are effectively under debt review.
The next step is to apply to the Magistrates Court and the magistrate declares you over-indebted.
If you have applied for debt review and the debt counsellor has issued form 17.1(b), you can still cancel the process. Be aware that creditors can immediately act against you, if you are in arrears with repayments, as you are no longer protected.
Once form 17.2(b) has been issued, you are under debt review, but a magistrate has not yet issued a court order. If your financial circumstances have changed, then you can provide this information in the court application. If the magistrate agrees that you are no longer over-indebted, this terminates the debt review.
Once a magistrate has issued a court order placing you under debt review, you cannot exit until all your debts, apart from your mortgage, are settled as per the court order. This means even if your financial circumstances change, you will not be able to exit debt review.
The only way to exit in this case is to accelerate all your debt repayments and settle as quickly as possible. If you received an interest-rate concession in the debt review agreement, you would settle your debts sooner than if you were not under debt review.