A person can be removed from debt review through either a debt review removal court order or a clearance certificate.
A debt review removal court order and a clearance certificate are two completely different documents, with different requirements for obtaining them. However, they ultimately serve the same purpose: removing the debt review flag from your credit report.
Clearance Certificate
A clearance certificate is issued by a debt counsellor and does not require the involvement of a court. It requires that all short-term debts are paid in full or have prescribed. Short-term debts include all types of credit agreements except a home loan.
If a person no longer has any short-term debt — essentially, they have paid up or settled all their debts other than a home loan — they may qualify to be issued with a clearance certificate.
However, some people do not qualify for a clearance certificate because they still have outstanding short-term debts. This is where debt review removal may become an option.
Debt Review Removal
Debt review removal involves a formal court application seeking an order declaring that a person is no longer over-indebted.
The individual must be able to demonstrate that they are no longer over-indebted.
If the court grants a debt review removal order, the order can be used to have the debt review status removed from the individual’s credit records.
Which Option Is Right for You?
Whether you require a clearance certificate or a debt review removal court order depends largely on your individual circumstances.
If you are unsure which option applies to you, consider completing our online application. We will assess your circumstances and provide professional feedback on the most appropriate option available to you.
Take the first step towards understanding your options today.