What Creditors Can't Do Once You're Under Debt Review – Know Your Rights

If you've found yourself overwhelmed by debt, debt review might be the lifeline you’ve been looking for. But beyond the help with repayments, a major part of the process is knowing your rights – especially when it comes to what creditors can't do.

At Debt Review Centre, we believe empowered clients make better long-term decisions. So let’s break down exactly what you’re protected from once you’re under debt review and what your responsibilities are to keep those protections in place.

Your Rights Under Debt Review

Once you’ve applied for debt review, a big shift happens in how creditors are allowed to interact with you. Here’s what they legally cannot do:

• They can’t take legal action like applying for a judgment or issuing a garnishee order against your salary – at least not without following the proper legal channels.
• No repossession of your stuff – They can't just come and take your car or furniture without going through formal court processes.
• No random interest hikes – Once a restructuring agreement is in place, they're locked into it. No funny business with your interest rate.
• No harassment, threats or pushing for payments outside debt review – You are protected from creditor intimidation tactics.
• No backdoor payments allowed – Creditors can’t bypass the debt review plan and ask you to pay them directly.
• No blacklisting – As long as you’re making your agreed payments under debt review, you can’t legally be blacklisted.

So What Exactly Can’t They Do?

Let’s break it down a bit more:

• No judgments or garnishee orders unless they have legally terminated your debt review first.
• No sneaky asset seizures – Repossessions require a proper court process.
• They can’t demand payments outside of what was agreed in your restructured debt review plan.

But here’s the catch — these protections only hold if you stick to your side of the agreement.

Your Responsibility: Keep the Plan Alive

If you’re under debt review, your responsibilities are actually pretty simple, but super important:

• Pay monthly – Full, on-time payments via a registered Payment Distribution Agent (PDA) are non-negotiable.
• Don’t skip or underpay – Missing just one month, paying late or short could result in creditors legally terminating your debt review. And once that happens, game over – they can proceed with legal action.
• Talk to your counsellor early – If life throws you a curveball and you suspect you might miss a payment, contact your debt counsellor immediately. They might be able to prevent things from escalating.

Remember, your counsellor is there to help you stay on track and navigate any hiccups.

What Happens If You Default?

Let’s be real – things can get messy if you don’t stick to the plan.

• Debt review can be terminated – Miss payments, and creditors can legally pull out of the process.
• They can sue you – Once you’re out of protection, creditors can go to court, garnish your wages, or even repossess assets.

How to avoid this?

• Stick to your monthly payments like clockwork.
• Stay in contact with your debt counsellor.
• Budget wisely and plan ahead for any bumps.

Need Help or Still Have Questions?

Debt review isn’t just about numbers – it’s about giving you breathing room, peace of mind and a plan. Understanding your rights and your role in the process is key to making it work for you.

If you’re struggling or unsure, don’t wait until things go bad. Contact us at Debt Review Centre anytime – we’re here to help you every step of the way.

You don’t have to figure it all out alone.

For more tips, check out our post on How Debt Review Works and Budgeting Tips During Debt Review.