Understanding the debt review process can help you feel more confident about taking this important step. Here is exactly what happens at each stage — from your first conversation with a debt counsellor to the day you receive your clearance certificate.
Free Assessment & Consultation
The process begins when you contact a registered debt counsellor. At DS4U, this starts with a free WhatsApp assessment — no forms, no office visit, no obligation.
During the assessment, a qualified debt counsellor reviews your income, expenses, and all your debt obligations using credit bureau information. They determine whether you qualify as over-indebted under the National Credit Act.
If you qualify, the counsellor will explain exactly how debt review will work for your specific situation, including estimated reduced payments.
Application & Form 16
Once you decide to proceed, you formally apply for debt review by signing a Form 16 — the official application document.
On receipt of the signed Form 16, your debt counsellor sends 17.1 notices to all your creditors within 24 hours. These notices formally inform creditors that you are legally under debt review and instruct them to provide Certificates of Balance (COBs) — the verified outstanding amounts on each of your accounts.
From this moment, you have legal protection under the National Credit Act — creditors must pause any legal action against you.
Certificates of Balance
After receiving the 17.1 notices, your creditors are required to send back Certificates of Balance (COBs). These documents confirm the exact outstanding balance, interest rate, and terms on each of your credit agreements.
This step is critical because your restructured repayment plan will be built on the actual verified data from your creditors — not estimates. Your debt counsellor follows up with any creditors who are slow to respond.
Restructured Proposal (Form 17.2)
Once all COBs are received, your debt counsellor uses that exact data to run formal repayment scenarios. This includes negotiating reduced interest rates (often as low as 0% on certain accounts) and extending repayment periods where needed.
The finalised proposal is sent to all creditors on a Form 17.2 — the official restructured repayment plan. This outlines a single affordable monthly payment that covers all your debts, typically 30–50% less than what you were paying before.
Creditors can agree to the proposal or oppose it. If they oppose, your debt counsellor engages further to reach an agreement. Most creditors accept because they know it is better to receive reduced payments than risk the consumer defaulting entirely.
You Start Paying Immediately
This is important: you do not wait for a court order before you start paying. Your single reduced monthly payment begins immediately once your repayment plan is in place.
Payments are made to a Payment Distribution Agency (PDA) — an independent, regulated entity that distributes your money to all your creditors according to the plan. You do not need to manage multiple payments or deal with creditors directly.
The PDA provides you with monthly statements showing exactly where your money goes and your progress on each account.
Court Application (Consent Order)
Your debt counsellor submits a court pack to the magistrate's court to obtain a consent order — a legally binding court order that makes your restructured repayment plan official.
Once the consent order is granted, both you and your creditors must comply with its terms. This gives you the strongest legal protection available and locks in your reduced interest rates and payment amounts.
With DS4U, you do not need to appear in court — your debt counsellor and legal team handle everything. Please note that court timelines vary between different magistrate's courts, so we cannot predict exactly when the order will be granted.
Ongoing After-Care
Throughout your debt review, your debt counsellor continues to manage your case with ongoing after-care. This includes handling creditor queries, monitoring your account, and helping if your circumstances change.
You can make additional payments at any time (such as from a bonus or tax refund) to pay off debts faster. Once a debt is settled in full, that portion of your payment is redirected to your remaining creditors — speeding up the process even further.
Clearance Certificate
Once all your debts are paid in full, your debt counsellor issues a clearance certificate (Form 19). This is the official document that confirms you have completed debt review and are debt-free.
The debt review flag is removed from your credit profile at all credit bureaus. You are free to apply for credit again, and your credit record begins to recover.
Many clients describe receiving their clearance certificate as one of the most freeing moments of their lives.
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Frequently Asked Questions
How long does the debt review application process take?
The initial assessment and application can be completed on the same day. Your 17.1 notices are sent to creditors within 24 hours, and the formal proposal is typically sent within two weeks. Court pack submission follows shortly after. However, the timeline for obtaining a court order varies depending on the specific magistrate's court — some are faster than others. With DS4U's WhatsApp-first process, you can complete your application in under an hour.
Do I have to wait for the court order before I start paying?
No. You begin making your single reduced monthly payment immediately after your repayment plan is set up — not after the court order. The court order formalises and legally protects the arrangement, but your payments and creditor protection start right away.
Can I speed up my debt review?
Yes. You can make additional payments (such as from a bonus or tax refund) to pay off debts faster. Once a debt is settled, that payment is redirected to other creditors. Some clients complete debt review in less than 3 years this way.
What documents do I need for debt review?
You will need your South African ID, latest payslip or proof of income, 3 months of bank statements, and a list of all your credit agreements. Your debt counsellor will guide you through exactly what is needed.
