Debt Review and resigning

marhsava

marhsava

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okay so my friend just quit her job(due to personal reasons) and she is under debt review.

my question is what will happen to her if she can't pay the debt review company, do they freeze her accounts? , she only has unsecured loans, no assets involved.

P.S. she won't be finding another job anytime soon.
 
Best she speak to them ASAP to find out. If she is not going to work and she is already under debt review she will probably have to be declared bankrupt.
 
She will need to check the terms of the debt review agreement. Don't see how her accounts can be frozen, she is already classified as under review.
 
debt review will probably nag for a month or two, then cancel the contract.

She can expect phone calls from the companies she owes money to within 2 months of not paying debt review demanding she makes arrangements.

Went through it myself where there was a period of time between running out of savings and starting a new job.
 
marhsava said:
okay so my friend just quit her job(due to personal reasons) and she is under debt review.

my question is what will happen to her if she can't pay the debt review company, do they freeze her accounts? , she only has unsecured loans, no assets involved.

P.S. she won't be finding another job anytime soon.
Click to expand...

Off topic but why not finding another job?
 
marhsava said:
okay so my friend just quit her job(due to personal reasons) and she is under debt review.

my question is what will happen to her if she can't pay the debt review company, do they freeze her accounts? , she only has unsecured loans, no assets involved.

P.S. she won't be finding another job anytime soon.
Click to expand...
No. If she stops paying then debt review will be terminated and the creditors will be coming for their money again
 
Does she have any assets? Car, house etc? Because those are up for grabs by the creditor if she's liquidated, sequestrated etc.

She will also find it VERY difficult to get any credit in the future , even if her finances come right.

Rather push out on the creditors telling them they'll get payments when she's employed again
 
The debt review plan should include provision for repayment of the debt review fees.
 
eehellfire said:
Does she have any assets? Car, house etc? Because those are up for grabs by the creditor if she's liquidated, sequestrated etc.

She will also find it VERY difficult to get any credit in the future , even if her finances come right.

Rather push out on the creditors telling them they'll get payments when she's employed again
Click to expand...
I have found many companies are more interested in getting most of what they are owed 'at some point' so many (but not all) are willing to entertain reasonable conversations.

Maybe discuss the issue with the debt review company now, before it becomes an issue. Depending on the reasons for the resignation and the supporting documentation supporting those reasons, might be able to claim from the insurance covering the debt.
 
Can provident fund be paid out to cover debt? Any other assets that can be sold - cars or residences?
 
I am sure your friend would have signed some form of debt repayment agreement when undergoing or signing up for debt review. Therefore, if she stops paying, she will be in breach of her agreement with the relevant debt company and, indirectly, all her creditors. It doesn't make sense to freeze her accounts, she is already under debt review. Your friend will need to check what the debt review company and creditors are legally allowed to do now that she is in breach of the debt agreement.
 
Anyone on here......I want to make a loan on my provident fund to pay off debt. How can i make that happen? I know banks only loan when a house is involved, but i don't own a home, and im not wanting to buy. Are there lending institutions who will approve a loan on my provident fund, without having to prove you own or want to buy a house?
 
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