When consumers apply for Debt Review, credit providers can not proceed to serve summons against the consumer. The credit provider will also not be able proceed to take judgement against the Consumer or issue a warrant of execution against the Consumers property to collect the outstanding debt.

It is therefore important for the consumer to prevent the Credit Provider from taking the above-mentioned steps. If a consumer receives a Section 129 letter of demand it is important for the consumer to contact the credit provider immediately to arrange for a decrease of his instalments or to contact a Debt Counsellor for an over-indebted assessment.

The Debt Counsellor will then analyse the Consumers financial means and obligations to establish which amount the consumer can pay towards his monthly instalments for his debt. A single monthly instalment is then payable in respect of all the outstanding debt.

This will include all credit agreements e.g motor finance, credit cards, bond, etc. The Debt Counsellor negotiates on behalf of the consumer with the credit providers for a reduced instalment and interest rate.