if you were indeed formally placed under debt review, the only way to get rid of the listing is to pay up all the listed debt and then get a clearance certificate from the Debt Counsellor which you then send to the Credit Regulator.
I enclose a copy of my financial statement. This shows my income and expenses. You will see from this information that I am unable to make any offer of payment. Unfortunately, my circumstances are unlikely to improve in the foreseeable future and I have no assets to sell to help clear my debt.
Debts may be canceled in a variety of ways, including through negotiations between the creditor and the debtor, debt relief programs, and personal bankruptcy. Debts forgiven by a creditor are generally considered taxable income.
Section 86(10) does not set out specific grounds for the termination of debt review and merely provides that a credit provider may terminate a debt review in the prescribed manner where the consumer is in default with a credit agreement "that is being reviewed in terms of this section".
If you miss a debt review payment it means you are breaking your agreement and your creditors are within their rights to initiate legal proceedings. Not only will you have to deal with all the calls and letters again but if you have assets, you run the risk of losing your home or your car.
According to the IRS, nearly any debt you owe that is canceled, forgiven or discharged becomes taxable income to you. You should receive a Form 1099-C, "Cancellation of Debt," from the lender that forgave the debt.
When it comes to credit card debt relief, it's important to dispel a common misconception: There are no government-sponsored programs specifically designed to eliminate credit card debt. So, you should be wary of any offers claiming to represent such government initiatives, as they may be misleading or fraudulent.
A goodwill letter is a formal request to a creditor asking them to remove a negative mark, like a late payment, from your credit report. Goodwill letters are most effective when the late payment was an isolated incident caused by unforeseen circumstances, such as a financial hardship or medical emergency.
We're going to answer this right up front; No, free debt review removal is not possible. Any company or debt counsellor that tells you any different is most probably not registered with the National Credit Regulator and is only looking to make a quick buck off your desperation.
How to Remove Canceled Debt From Your Credit Report. In general, you can't get discharged debt removed from your credit report unless the information is inaccurate. In that case, you have the right to file a dispute with the credit reporting agencies.
With this being said, not everyone can qualify for debt review and there are instances where it can be declined. Below is a list of those scenarios: Your current budget allows you to comfortably pay your debts at the current interest rates. You do not have enough debt to qualify.
Updated September 5, 2019 — The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief.
The borrower can apply for debt forgiveness on compassionate grounds by writing about the financial difficulties and requesting the creditor to cancel the debt amount.
Freedom Debt Relief is a debt settlement company that negotiates on behalf of consumers to lower how much debt they owe to their creditors. Consumers who complete Freedom Debt Relief's debt settlement program reduce their enrolled debt by an average of 20% to 25% after fees, according to the company.
In general, debt cancellation eliminates your loan if you die, or cancels the monthly payment if you become disabled, unemployed, or suffer some other hardship. Debt suspension may temporarily postpone all or part of your monthly payment while you are facing a hardship.
Code E is used to identify cancellation of debt as a result of a probate court or similar legal proceeding. Code F—By agreement. Code F is used to identify cancellation of debt as a result of an agreement between the creditor and the debtor to cancel the debt at less than full consideration.
Owing less than $50,000: The program is available to taxpayers with outstanding tax debts of $50,000 or less. If your debt exceeds this threshold, you may still qualify by paying down your balance to meet the requirement.
To cancel debt review, a court application is necessary. You must be able to show that you are no longer over-indebted. If any accounts are prescribed, the court needs confirmation from the creditor, or you must show you can afford to pay the account/s in question.
The Maximum is Five Years
When your debt counsellor negotiates new terms for your debt with your credit providers, the plan must focus on paying off your debt in 60 months (five years) or less. This is generally the longest repayment period that your credit providers would agree to.
The cost of removing a person from the debt review system varies depending on the amount of outstanding debt and credit providers involved. Generally, it can take between R1 000 and R30 000 to remove someone from the system including fees for legal advice or guidance in negotiating settlements with creditors.