Debt Review Property Calculator
Calculate the impact of NCA Section 86 debt review on your bond — restructured payment, Section 88(3) legal protection, NCR counsellor fees, and whether debt review, sequestration, or voluntary surrender is right for your situation
- Bond protection: NCA Section 88(3) — no repossession while under debt review and payments are made per the restructured plan
- Form 17.1 — debt counsellor notifies all creditors within 5 business days of application
- Court order required for debt restructuring plan — issued by Magistrate's Court
- Cannot access new credit during debt review; listed on NCR database
- Exit: On final payment, clearance certificate issued; listings removed
- Counsellor must be registered with the National Credit Regulator (NCR)
Debt Review and Property: What SA Homeowners Must Know NCA • Section 86 • NCR
How Debt Review Protects Your Bond
Under NCA Section 86, when you apply for debt review, a debt counsellor assesses whether you are "over-indebted" — meaning your total monthly debt obligations exceed what you can reasonably afford. Once the debt counsellor submits Form 17.1 to all creditors (within 5 business days), and you maintain the restructured payment plan, NCA Section 88(3) prohibits any credit provider from enforcing a debt through legal action.
This means your bank cannot repossess your home while you are under debt review, provided you pay the reduced bond instalment as agreed in the restructured plan. The restructured plan is confirmed by a Magistrate's Court order — this court order carries legal protection against creditor action.
What Debt Review Costs and What It Saves
NCR-regulated debt counsellor fees are capped:
- Initial application fee: R3,600 (once-off)
- Monthly fee: R450/month (NCA maximum)
- After-care / clearance fee: R8,500 at end of program
Against these fees, debt review typically reduces your bond instalment by 10–15% and other debt payments by 20–30%, creating meaningful monthly cash flow relief. Over a 5-year program, the net saving can exceed R200,000 for a household with R600,000+ in total debt.
Lungelo and Thandi earn R35,000/month gross combined and have a R16,000/month bond plus R8,500/month in car and personal loan payments — a DTI of 70%. An NCR debt counsellor restructures the bond to R13,900/month and other debts to R5,800/month. Monthly saving: R4,800. Over 5 years: R288,000 saved minus R45,600 counsellor fees = R242,400 net benefit. And their home is legally protected.
Exiting Debt Review
Completing debt review requires paying off all restructured debts as per the court order. On final payment, the debt counsellor issues a Form 19 (Clearance Certificate). This is submitted to the NCR, and all credit bureau listings are removed. You can then access credit again. Attempting to exit debt review early (without having paid all debts) requires a court application and is complex. Some consumers incorrectly believe they can simply "resign" from debt review — this is not possible once a court order is in place.
Frequently Asked Questions
Can I lose my house if I enter debt review in South Africa?
Not if you maintain the restructured bond payments as set out in the debt review court order. NCA Section 88(3) provides legal protection — no credit provider can enforce a debt or repossess property while you are under a valid debt review court order and making the agreed payments. However, if you stop making the restructured payments, the court order can be rescinded and the bank can proceed with repossession. The protection is conditional on payment compliance.
What is Form 17.1 in the debt review process?
Form 17.1 is the formal notification that an NCR-registered debt counsellor sends to all your credit providers (banks, car finance companies, personal loan providers) within 5 business days of your debt review application. It informs creditors that you have applied for debt review and that Section 88(3) protection applies. From the moment Form 17.1 is received, creditors cannot take legal action against you, provided negotiations are in progress or a court order is pending.
How long does debt review last and when can I buy property again?
Debt review programs typically last 3–7 years depending on total debt levels and the restructured payment capacity. You cannot apply for new credit (including a bond) while under debt review. After receiving your clearance certificate (Form 19), credit bureau listings are removed. Most banks require 12–24 months of clean credit history post-clearance before approving a new bond application. Total time from entering debt review to being bond-eligible again is typically 5–10 years.
Can I sell my home while under debt review?
Yes, in principle. Under debt review you retain ownership of your home and can sell it. Sale proceeds would typically be used to settle the outstanding bond (which is included in the debt review plan) and potentially accelerate the completion of the debt review program. However, you must inform your debt counsellor, as the sale changes the structure of the review. The debt counsellor must amend the court order to reflect the settlement. Selling can be a positive step toward exiting debt review faster.
What is the difference between debt review and an administration order for my bond?
Debt review under NCA Section 86 covers all your credit agreements including your bond — it provides comprehensive restructuring and legal protection for your home. An administration order under Section 74 of the Magistrates' Courts Act applies only to unsecured debts below R50,000 and does not cover your home loan. If your primary concern is your bond, debt review is the appropriate mechanism. Administration orders are suitable for smaller unsecured debts only and offer no protection against bond repossession.