The cost can vary depending on your situation, but on average you are looking at anywhere between R6,000 and R12,000 in South Africa.
If you are under debt review and want to get out, the first question that usually comes to mind is how much does it cost to remove debt review.
Some people pay a bit less, others a bit more. It depends on the lawyer handling the case, the complexity of your credit agreements, and whether there are any disputes along the way.
How Much Does It Cost to Remove Debt Review
The typical response to the question of how much does it cost to remove debt review is that you should budget several thousand rands. It might be more like R6,000 for a simple application. It may approach R12,000 or more if there are several creditors or difficulties. In addition to that, some lawyers charge a consultation fee.
See also: Top 20 debt review companies in South Africa
These expenses typically entail representing you, filing in court, and writing legal documents. The lawyer must persuade the judge that your debt has been paid in whole or that you are no longer overly indebted. The credit bureaus will update your profile and you will be cleared after the court issues the ruling.
As a result, the answer to the question “How much does it cost to remove debt review?” is not a simple figure. It’s a range. The final cost is determined by the specific work required, just as when you take your automobile in for maintenance.
Debt Review Removal Process
The debt review removal process is not something you can do with a single phone call. It requires a formal legal step. You must first demonstrate that you are no longer too indebted or that all of your debts have been paid off. The court must be convinced that you are financially stable, or your creditors must concur.
After everything is set up, you will need a lawyer to draft the application. The lawyer then submits it to the court. A magistrate examines the accompanying documentation and your financial situation. The court will issue an order stating that you are no longer subject to debt review if it is satisfied.
The lawyer then forwards the directive to the credit bureaus. The debt review flag is removed from your profile after they update your record. Banks and lenders won’t notice that you are no longer under debt review until after that.
Although it appears straightforward in writing, it may take months, particularly if creditors object or if the court dates are postponed. People frequently inquire about how much does it cost to remove debt review because they want to know how much money and time it will take to complete the process.
Not every case is the same, which is why the costs differ. The application is typically simple if you have one or two credit agreements that are fully paid off. The fee goes up because the lawyer has to do more work if you have several loans, a home loan, or disagreements with creditors.
Additionally, the cost will vary according on the lawyer you select. While some businesses charge by the hour, others provide set packages. Because of this, you frequently get a range rather than a single amount when you inquire how much does it cost to remove debt review.
When you’ve already worked hard to wipe off debt, having to pay thousands of rand to clear your financial status might be irritating. The court order, however, is what gives it official status. The debt review status will remain on your profile if you don’t have it.
Some people go straight to court without a lawyer in an attempt to cut costs, but if you are unfamiliar with the legal system, this could backfire. Inaccurate documentation or omitted information may cause the application to be denied or the procedure to be delayed. Even though it hurts, this is another reason why most people pay for expert assistance.
In actuality, a debt review is designed to safeguard you in the event that you are unable to make your repayments. It isn’t made to be simple to get out. For this reason, there is a fee associated with the removal. Many people believe that the cost is justified when compared to the advantages of having their credit restored and their identity cleared.
Ask your lawyer up front about all potential costs so you can budget for them. Some will just provide an estimate for the court application, leaving out additional expenses like copies or sheriff fees. You will avoid unpleasant surprises later if you are clear from the beginning.
The timing is crucial. The court will probably deny your request to be removed from debt review if you are still in arrears. In that scenario, spending money on a failed application would be a waste. Waiting until your debt is paid off or until you can demonstrate a substantial improvement in your financial situation is the wisest course of action.
This is also why the subject of how much does it cost to remove debt review keeps coming up. Money is not the only consideration. The question is whether the timing is appropriate. Even the best lawyer won’t be able to help if the timing is off.
When it comes to regaining your financial independence, money is always a source of pain. You are likely already familiar with the stress that comes with being under debt review. It can be disheartening to consider spending thousands extra only to get your name cleared. However, it becomes clear why it costs what it does if you comprehend the procedure.
How much does it cost to remove debt review, then? On average, it can range from R6,000 to R12,000, occasionally higher or lower. The intricacy of your case, the lawyer you choose, and the court’s speed all play a role. Before you apply, make sure you are financially prepared, save for the procedure, and become ready.
Disclaimer: The information provided in this blog is for educational and informational purposes only and should not be considered financial, investment, or legal advice. I am not acting as your financial advisor. You should always do your own research or consult with a qualified professional before making financial decisions.
