Debt freeze after retrenchment: pause your repayments for up to six months
What is a debt freeze?
Freeze all your unsecured debt, interest and fees for up to six months, with a debt freeze application after retrenchment.
A debt freeze is a debt review proposal, made by a registered debt counsellor, that asks the Magistrate’s Court to postpone your repayments for a set period and extend your credit agreements. It is designed for people who have lost income through retrenchment and expect to earn again. To apply you will usually need your retrenchment letter, your latest payslips and a statement for each credit account. If you are still deciding what to do, read what happens to your debt if you get retrenched.
The National Credit Act provides for these scenarios in Section 86(7)(c)(i)(cc). This section reads as follows: “if as a result of an assessment conducted in terms of subsection (6), a debt counselor reasonably concludes that the consumer is over-indebted, the debt counselor may issue a proposal recommending that the Magistrates Court make an Order that one or more of the consumer’s obligations may be rearranged by extending the period of the agreement and postponing during a specific period the dates on which payments are due under the agreement”.
Apply For Debt Freeze Today
*Valid For Eastern Cape only