When a Consumer realises he/she is over-indebted or received a letter of demand (Sec 129 letter) from a Creditor, he/she may go to a Registered Debt Counsellor (DC) and apply for Debt Review.
The Debt Counsellor will then evaluate all the information provided, make a determination, and advise the consumer.
If a consumer is over-indebted, the Debt Counsellor will restructure the instalments to the maximum affordable amount, and notify the Credit bureaus and the Credit Providers thereof.
For the following 60 days, the Debt Counsellor negotiates with the Credit Providers.
No Credit Provider may take any further legal steps to collect from the Consumer during this 60 days.
The Debt Counsellor has to refer the matter to the Court within the 60 days to get a Debt Counselling Order, making the restructuring final.