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National Credit Act, 2005 (Act No. 34 of 2005)

Chapter 4 : Consumer Credit Policy

Part D : Over-indebtedness and reckless credit

85. Court may declare and relieve over-indebtedness


Despite any provision of law or agreement to the contrary, in any court proceedings in which a credit agreement is being considered, if it is alleged or it appears to the court that the consumer under a credit agreement is over-indebted, the court may—

(a) refer the matter directly to a debt counsellor with a request that the debt counsellor evaluate the consumer’s circumstances and make a recommendation to the court in terms of section 86(7); or
(b) declare that the consumer is over-indebted, as determined in accordance with this Part, and make any order contemplated in section 87 to relieve the consumer’s over-indebtedness.
(c) where the consumer may qualify for debt intervention, enquire whether the consumer wishes to participate in debt intervention and if the consumer confirms—
(i) refer the matter to the National Credit Regulator for consideration; or
(ii) where the court has sufficient information to do so, consider the matter and make an order contemplated in sections 87(1A) or 87A.


[Section 85 substituted by section 11 of Notice No. 1081, GG 42649, dated 19 August 2019]