What is Debt Review removal? This guide explains the process of removing the debt review flag from your credit report, helping you regain access to loans and rebuild your creditworthiness. Includes a real-life example!
By The National Debt Review Center
Introduction
Debt review, a process where a professional helps individuals manage overwhelming debt, can be a lifeline for those struggling financially. However, once you’ve successfully navigated your repayment plan and are back on track, the mark of debt review on your credit profile can linger, potentially hindering your ability to access new credit. This is where debt review removal comes in.
What is Debt Review Removal?
Simply put, debt review removal is the legal process of having the “debt review” flag removed from your credit report. This flag, a consequence of seeking professional help from a registered debt counsellor, can be seen as a red flag by lenders, making it difficult to secure loans, vehicle finance, or even cell phone contracts.
Debt Review Removal real life examples.
- Sarah, a diligent accountant, always managed her finances responsibly. However, she received a notification that she was under debt review, a status she never agreed to. Upon investigation, she discovered a “rogue” debt counsellor had falsely registered her without consent. This not only caused immense stress but also negatively impacted her credit score, making it difficult to secure a mortgage for her dream home.
- Imagine Amanda, a young professional, who utilised debt review to manage her loans and credit card debt responsibly. She successfully applied for the debt review program and is now financially stable, but the remaining debt review flag on her credit report is preventing her from securing a car loan to pursue a career opportunity across town.
This highlights the importance of debt review removal in regaining access to the credit market and opportunities that the flag might hinder.
The Removal Process:
The process for debt review removal can be complex and varies depending on your specific situation. Generally, it involves:
- The first step is to complete the application for debt review removal form. The client initiates the process by either booking an appointment or completing an online application form. The application form can either be filled out online or downloaded and submitted after completion.
- The second step is to assess your application. After receiving the application, it is thoroughly assessed to determine the likelihood of a successful debt review removal. This involves reviewing your current financial status, ability to service your current debt obligations, debt review history and other contributing factors.
- Once the application is deemed potentially successful, a legal pack is prepared. This involves gathering all necessary documentation from relevant stakeholders, which may include previous debt counsellors, credit providers, client and other legal entities.
- The complete application/legal pack, is then submitted to a court. The purpose is to obtain a court order declaring that you are no longer over-indebted.
- If the court finds the application valid and it meets all criteria, the order declaring you no longer over-indebted or rejection thereof of the previous application will be granted.
- Once the court order is granted, the documentation is submitted to the NCR for updates and verification.
- After the NCR updates their records to reflect your new status, they notify all credit bureaus of the change and request us to do the same.
- Your record from the bureaus will be updated within 21 business days after our submissions and the debt review listing will be successfully removed from your credit profile, thus restoring your creditworthiness.
Remember:
- Seeking professional help with managing debt is a responsible step, and it shouldn’t negatively impact your future financial endeavors.
- Debt review removal can be a complex process, so consulting with a registered debt counsellor or contacting the National Credit Regulator can be beneficial.
By understanding debt review removal and taking necessary steps, individuals like Sarah & Amanda can move beyond the challenges and rebuild their creditworthiness, opening doors to new financial opportunities.
Book a Free Debt Review Removal Consultation with The National Debt Review Center Below.
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