Debt mitigation- remedies to debt problems

Information on Responsibility and obligations during moratorium on payments

Your duties

Set aside from your income anything that exceeds essential living expenses.

Do not dispose of, sell, gift, or pledge any valuables or assets that could be used to pay creditors.

Do not make payments on debts that are covered by the debt mitigation, for example:

• instalments on loans such as mortgages, car loans, and student loans,

• instalments under vehicle (car) agreements/leases,

• payments toward child-support arrears.

You must pay bills related to the household’s day-to-day running.

You must pay all accruing public charges/taxes and ongoing child support.

You must pay claims that arise during the payment moratorium.

Duties of the creditor

• The creditor may not accept or demand payment of their claims.

• The creditor must not use general collection measures.

A payment moratorium entails that:

• bank accounts with an overdraft facility will be closed,

• credit cards with a credit limit will be closed,

• direct debits will be cancelled,

• credit-card instalment plans will be accelerated (become immediately due),

• payment services will be closed.

An appointed case administrator will provide detailed guidance on your rights and obligations during the payment moratorium.

Back: Application accepted

Onwards: If an application is rejected