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What happens if I stop paying debt review?

What happens if I can't pay my debt review payment?

As hard as it may be during challenging times, do not miss a debt review payment. Debt review, also known as debt counselling, is a legal process, and your payment plan has been accepted by all your creditors. A court order has also been granted.

If you default on your plan, you are breaking your agreement and your creditors are within their rights to initiate legal proceedings. Not only will you have to deal with all the calls and letters again but if you have assets you run the risk of losing your home or your car.


Rather pay something than nothing. This shows a willingness to continue with the program and contact your debt counsellor straight away. This is not the time to be shy or to think your debts will just disappear.

They won’t. Your debt counsellor can look at the options that are available to you. If your circumstances have changed such as you have a reduced income, then your counsellor can apply to your creditors for a re-negotiation.

Understand the impact of missing a debt counselling payment

If you do miss a payment and do not let your debt counsellor know, the legal process will begin.

Your creditors will issue you with a Section 129 letter which confirms you are in arrears. This will be followed by a summons and if ignored leads to a default judgement.

It is at this point that a warrant of execution is issued, and your car can be repossessed and sold at auction to cover some of your debt.

If you do not have a car to sell you will be required to attend court where the magistrate will review your income and expenses and make a ruling on what you must pay to each of your creditors. If you do not stick to this ruling a garnishee order can be issued where the money is taken from your salary before it reaches your bank account.

If you leave your job to get away from the garnishee order, then your creditors can look at repossession of your home to cover the outstanding debt amount.

How do I get out of debt review without paying?

You can't get out of debt review without paying. If a court order has been granted, the only way to get out of the process is to settle your debts. 

Speak to your debt counsellor

It really isn’t worth it to miss a payment and not talk to your debt counsellor about it. Debt counselling is there to protect you and your assets. Keep your debt counsellor informed throughout the process and remember why you entered the process in the first place.

The intention is to get you debt-free and provide peace of mind. Do not make your situation worse.

We are always looking out for our clients and are here to help you throughout the duration of your plan.  If you are finding it difficult to keep up with your repayments, don’t hesitate, click below to get in touch today.

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