How Debt Review Can Stop Repossession in Its Tracks – A Must-Know for South Africans

There’s no worse sinking feeling than realising that your car or home could be taken away. For a lot of South Africans, falling behind on payments doesn’t just mean stress – it means the real risk of repossession. But there's hope: debt review might be the lifesaver you didn’t know you needed.

Understanding Repossession vs. Surrender

Before we dive into how debt review helps, it’s important to get something clear: repossession and surrender are not the same thing.

• Repossession: This is a legal process that happens when you’ve missed payments and the bank steps in to take back an asset, like a car or house, that’s still under credit.
• Surrender: This is voluntary. It’s when you hand the item over to the credit provider because you can’t afford it anymore—even under a debt review plan.

If you know for a fact that you can’t keep up with payments now or in the near future—even with help—surrendering the asset might be the smartest option. Holding onto an asset you can’t pay for will just rack up legal costs and, eventually, still lead to repossession. So it’s worth being honest with yourself and your financial situation.

How Repossession Happens: The Legal Route

Repossession isn’t instant—it’s a process, and if you understand it, you’ll know when to act.

1. Section 129 Notice: The bank first sends you a warning called a Section 129 Notice. This gives you 10 business days to take action.
2. During those 10 days, you can:
   • Apply for debt review
   • Dispute the amount owed with the bank
   • Or, if possible, just pay what’s due
3. If you don’t respond within those 10 days, the bank will issue a summons.
4. Ignoring the summons means the court can issue a default judgment against you.
5. Then it can go as far as a warrant of delivery—the sheriff will come to collect the asset.
6. If you refuse to hand it over to the sheriff, that’s actually a criminal act, and yes, you could be arrested.

Scary stuff, right? But here’s where things get hopeful.

How Debt Review Stops Repossession

If you apply for debt review within the 10 business days after the Section 129 notice, the bank cannot move ahead with repossession or legal action. That’s the legal protection you get under the National Credit Act.

What is Debt Review?

Debt review is a process designed to help over-indebted South Africans manage their debt. When you apply, a registered debt counsellor looks at your situation, helps restructure your payments into an easier-to-manage monthly plan, and negotiates with your creditors to accept lower payments over an extended period.

Once you're under debt review:

• Legal action is paused.
• Your assets are protected from repossession.
• You only have to worry about one reduced, affordable monthly payment—as long as you pay it every month.

It’s important to note that once you’ve skipped the 10-day Section 129 window, your options become limited. So don’t wait too long to act.

What Happens If You Don’t Stick to the Plan?

If you enter debt review, but then stop making your monthly payment, the legal protection falls away. Your creditors are no longer bound to the agreement, and they can start legal action again—which includes repossession. So it’s crucial that you stick to your payments once you’re in.

Practical Tips If You're Considering Debt Review

• Act Fast: As soon as you receive a Section 129 notice, get advice from a qualified debt counsellor like us at Debt Review Centre.
• Be Honest: Don’t try to hold onto assets you can't realistically afford. Repossession will hurt more in the long run.
• Choose the Right Debt Counsellor: Make sure they’re registered and experienced. Transparency and support are key.
• Budget Wisely: Once you're under debt review, you'll need to live within your new reduced budget. It may feel tight at first, but it's worth it for keeping your home, car, and your peace of mind.

Debt Review Myths vs. Truths

Myth: Debt review will destroy your credit score forever.
Truth: While debt review adds a note on your credit profile, it’s not permanent and it’s far better than judgments or repossession orders. And once your debts are paid up, you can start over, clean.

Myth: You have to give up all your assets.
Truth: Debt review actually helps you keep your assets—if you apply at the right time and keep up with payments.

Need Help or Have Questions?

We’re here to assist. At Debt Review Centre, we’ve helped countless South Africans stop repossession and regain their financial footing. If you're not sure whether debt review is right for you, chat to us today—no obligation, just real advice.

Final Thoughts

Repossession can feel terrifying, but you do have options—and debt review might be your best one. Just remember, timing is everything. Get advice early, act within the right timeframe, and you can keep your assets safe while getting your debt under control.

Your next best step? Talk to a certified debt counsellor and see how debt review can change your future for the better.