Clearance Certificates
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Paid Your Debt Review Debts? It's Time to Move Forward.
Completing your debt review journey is a major achievement. But paying your debts does not necessarily mean that the debt-review status will simply disappear from your credit profile.
A Clearance Certificate, issued in terms of Section 71 of the National Credit Act, is the formal document used to conclude the debt-review process once you have met the relevant requirements.
Once the certificate has been properly issued and filed, the relevant debt-review information must be removed from the applicable credit-bureau records.
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What is a Clearance Certificate?
A Clearance Certificate is issued by a debt counsellor to a consumer who has satisfied the requirements of their debt rearrangement.
In general, this means that the obligations under the credit agreements included in the debt rearrangement have been settled in accordance with the debt-rearrangement order or agreement.
There is also provision for circumstances where a qualifying mortgage remains, provided the requirements set out in Section 71 have been satisfied.
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Who Qualifies for a Clearance Certificate?
A Clearance Certificate is generally issued to a consumer who has satisfied all the obligations under the debt-rearrangement order or agreement relating to the credit agreements included in the debt review.
In terms of Section 71 of the National Credit Act, a debt counsellor may issue a Clearance Certificate once the required obligations have been fully satisfied.
The prescribed certificate (Form 19) confirms that the consumer has discharged the relevant obligations and identifies the debts that have been settled.
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What may be required?
To assess whether you qualify for a Clearance Certificate, relevant information and supporting documentation may include:
1. Proof of payment or settlement of the debts included in the debt-rearrangement order.
2. Letters or confirmation from credit providers confirming that the relevant accounts have been paid up or, where applicable, have become uncollectable by operation of law.
3. Details of the debt-rearrangement order or agreement, including the relevant court or tribunal information.
4. Your identification and contact details.
The latest account information from the relevant credit providers, where required.
The NCR's current guidance states that clearance certificates filed with credit bureaus must be accompanied by letters from the relevant credit providers confirming that the accounts have been paid up or have become uncollectable by operation of law.
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What if you have paid your debts but cannot get a Clearance Certificate?
You may still have options.
If you have completed your debt-rearrangement obligations but are unable to obtain your Clearance Certificate, your circumstances should be assessed to determine what is preventing the process from being completed.
National Debt Helpline can assess your situation and help you understand the next steps towards completing your debt-review clearance.