The consumer applies for debt review with the help of a debt counsellor
or consultant. The Debt Counsellor will explain to the consumer what debt review is.
The consumer completes and signs a debt review application
form. The form is called a Form 16. Form 16 together with supporting documents
is handed over to the debt counsellor or consultant.
The details on the form 16 are captured immediately. Within
5 days (normally sooner) all creditors are notified with form 17.1 that
consumers is applying for debt review. The debt review application is now in
process. No legal action from creditor is now possible.
The debt review process takes 60 working days. The creditor
has 5 business days to provide information on consumer. This is checked against
what the consumer presented to debt counsellor. After 5 days, the creditor is
reminded to give feedback. Another 10 days grace is given to the consumer.
If the debt counsellor does not receive conformation from
creditors, he may presume that the figure provided by consumer are correct. The
debt counsellor will now determine if consumer is over in debt.
The debt counsellor will now prepare a debt restructuring
proposal to the creditors. The proposal must be sent 25 days from date of
application. All creditors have 10 days to respond. If there is no response,
the creditors will get a reminder and another 5 days to respond.
The proposal will be sent to the Payment Distribution
Agency to start the distribution to creditors.
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