Debt Review School | Being Over Indebted

To qualify for debt review you need to be*  “over indebted”.

What does that mean?

If a person cannot pay for all the things they need each month (like groceries, electricity, transport etc) and at the same time pay all their credit providers what they are supposed to at the end of the month. Then they have too much debt. They are “over indebted”.

A Debt Counsellor can work out whether this appears to be the case and can then say that the person is able to enter debt review. This allows a consumer to start the debt restructuring process. A court will later rule on whether the consumer is indeed over indebted and turn any proposals into a court order about how repayments will be done.

*or soon about to be