Debt review is a legal process that's designed to help individuals manage overwhelming debt while protecting them from legal action by creditors. However, once you’ve completed the process, it's essential to understand when and how you can return to normal financial activities. This blog will answer some key questions, including:
Once you exit debt review, it's crucial to ensure that the debt review flag is removed from your credit profile. This flag indicates that you are under debt review and restricts access to new credit. Here’s how to know if it’s been removed:
If you still have the debt review flag on your credit report and you've completed the debt review process, we can get it removed for you by issuing you with a debt review clearance certificate. Start your application now:
Credit providers are bound by the debt review agreement/ retrstuctured repayment plan as there is a court order in place. However, a credit provider may terminate debt review if you do not make your debt review monthly payments. By not making your monthly payments you are not adhering to your restructured repayment plan.
Before a credit provider can take legal action or terminate the debt review, they must follow specific legal procedures, including providing notice.
Technically, creditors can decline debt review proposals. When a person applies for debt review, a Debt Counsellor works with creditors to restructure repayment terms. If a creditor feels that the proposed terms are unfavorable or do not adequately cover their financial interests, they can reject the proposal.
However, creditors must provide valid reasons for declining, and the debtor can approach a court if the creditor’s refusal seems unjust. This very rarely happens as debt review serves a creditor too in that they will be getting consistent monthly repayments for your debt.
One of the most common questions after debt review is can I get a loan after being removed from debt review? The short answer is yes, definitely. Debt review is not a criminal record or life sentence. You will be able to secure a loan after the debt review process and you may even be in a better position to do so because debt review is a way of rebuilding your credit score.
Before applying for new credit, allow some time for credit bureaus to update your credit report. We also recommend that you:
Once you have successfully completed the debt counselling (debt review) process, remember you have shown that you can consistently pay your creditors. You are now in a better position to take on credit and continue slowly building a credit profile to secure more credit and loans in the future!