Yes, this is possible if your debt review has been court-ordered and the court order is subsequently overturned OR an application is filed with the court declaring you “not over-indebted.” You can withdraw from the debt review process before Form 17.2 is issued. Form 17.2 shows that the debt advisor (at your request and permission) has carried out a financial assessment and determined that you are over-indebted. Thank you for trusting the National Debt Review Center to help you regain control of your finances.
This flag protects you from existing loan providers taking legal action against you while your debt review request is being processed. The debt check elimination process takes 3 to 6 months and longer in case of complications. However, you can repay that debt as quickly as possible — talk to your debt advisor about a revised repayment schedule. Loan providers don’t like it when customers are subjected to a debt check, as they often have to make interest concessions.
The following infographic shows the debt review process from the first step to the placement of the order. Thereafter, as soon as the court order is received, the debt check identifier must be removed from the consumer’s credit reports and from the NCR database. Once the acceptance of Form 17.2 has been issued and you submit to a debt check, a magistrate must issue a court order to declare the consumer over-indebted. A recent court ruling provided clarity on how and when a person can leave the debt check.
Dickerson says if you benefit from a reduced interest rate and can afford to pay more than the court order each month, you’d better pay off the debt check in less time and still benefit from the lower interest rates. The request to end a debt check depends on the consumer’s ability to prove that he is no longer over-indebted. The latest ruling found that no court could overturn the order that put a consumer under debt review until all conditions are met. After that, the magistrate decides and if the offer is granted in your favor, the debt check list will be removed from your credit profile and you can get a new credit.
This means that you cannot end debt review early, even if your financial circumstances have changed. If a consumer’s financial situation has improved and he or she is now able to make the repayments normally due to creditors, the consumer’s debt screening process can be terminated. The debt review request must be settled in court within 60 working days. However, the actual hearing date depends on the court list, which can last up to six months.
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Barry Ritholtz is a renowned finance expert, author and blogger. With over 30 years of experience in the financial industry he has gained a reputation as a thought leader and influencer in the investment community.