How debt review works
The debt review process step by step
By Lerato Molefe · 7 min read · Updated 24 June 2026
The debt review process follows clear legal steps: you apply on Form 16 under section 86, your counsellor assesses your affordability and notifies creditors within five business days, a restructuring plan is negotiated, a magistrate's court makes it an order under section 87, and you pay monthly through a payment distribution agent until you finish.
Knowing the order of events means you can track exactly where your case is and what comes next.
This page details each step, the forms involved and the protection that kicks in along the way.
Step 1: Apply (Form 16, section 86)
You approach an NCR-registered debt counsellor and complete Form 16, the debt-review application under section 86. You provide ID, proof of income, bank statements and a full list of debts. The upfront application fee is R50, an NCR-regulated maximum.
The counsellor must, within five business days, notify all your credit providers and the registered credit bureaus that you have applied. This is the official start of the process.
Step 2: Affordability assessment
Your counsellor draws up a budget to decide whether you are over-indebted. From 2026 the NCR requires a standardised affordability assessment, so the figure is calculated consistently. If you are over-indebted, the counsellor works out a single reduced monthly payment you can sustain.
Step 3: Proposal to creditors
A restructuring proposal goes to each creditor: lower instalments, a longer term and, where agreed, reduced interest. Creditors can accept or negotiate. Your secured debts (car, home) are structured so you keep the asset while you pay. Form 17.2 is used to notify parties of the outcome of the assessment.
Step 4: Court order (section 87)
Your counsellor takes the proposal to the magistrate's court under section 87. The magistrate reviews it and makes a court order binding you and your creditors to the new plan. Your section 88 protection - no legal action, no repossession on the debts in the plan - is now firmly in place.
From here, exiting before you are paid up generally needs a court application to rescind the order.
Step 5: Pay through a PDA
You pay one monthly amount to a registered payment distribution agent (PDA), which splits it among creditors and sends statements. The PDA charges R15 per payment over R500. You keep paying until the debts are settled.
Step 6: Clearance certificate (Form 19)
When your debts are paid up, your counsellor issues a Form 19 clearance certificate within seven days, notifies the NCR and all credit bureaus, and the bureaus remove the debt-review flag, typically within about 21 business days. If you settled some creditors directly, give the counsellor your paid-up letters so the certificate can be issued.
The forms at a glance
| Form | Stage | Purpose |
|---|---|---|
| Form 16 | Application | Apply for debt review (section 86) |
| Form 17.2 | Assessment | Notify outcome of the affordability assessment |
| Section 87 order | Court | Make the restructuring legally binding |
| Form 19 | Exit | Clearance certificate once debts are paid |
Frequently asked questions
What is the debt review process step by step?
Apply on Form 16, get an affordability assessment, creditors are notified within five days, a restructuring plan is negotiated, a magistrate's court grants an order under section 87, you pay through a PDA, then receive a Form 19 clearance certificate when done.
What is Form 16 in debt review?
Form 16 is the debt-review application under section 86 of the National Credit Act. You complete it with your counsellor to formally apply and start the process.
What is section 87 of the National Credit Act?
Section 87 is the stage where a magistrate's court reviews your counsellor's restructuring proposal and makes it a binding court order, locking in your reduced payments and your legal protection.
How long does the debt review process take to start?
Your counsellor must notify creditors within five business days of your application. The protective court order under section 87 usually follows within a couple of months, depending on the court roll and creditor responses.
What is Form 17.2?
Form 17.2 is used during the process to notify the parties of the outcome of your affordability assessment - whether you are found over-indebted and how the debt will be restructured.
What document do I get at the end of debt review?
A Form 19 clearance certificate, issued by your debt counsellor once your debts are paid up. It triggers removal of the debt-review flag from your credit profile.
Can I be turned down for debt review?
Yes. If the affordability assessment shows you can pay your debts normally, you are not over-indebted and debt review may be declined. A counsellor will tell you honestly during the free assessment.
