Trapped in Debt Review? Here’s How South Africans Can Safely Break Free

Stuck in debt review? Milaw Legal explains safe, legal ways to exit—plus how to spot scams and take back your financial freedom.

29 July 2025: With household debt now topping a staggering R2.56 trillion and more than 717,000 South Africans stuck under debt review, many consumers are desperate for a way out. But as Rynhardt de Lange, Director & Head of Legal at Milaw Legal, warns, “too many people don’t actually understand what their debt review status means—or how to get out of it safely.”

Debt review, designed as a lifeline for over-indebted consumers, is increasingly leaving people trapped long after they’ve regained stability. “We’ve seen clients who paid off everything two years ago yet still can’t qualify for something as simple as a cell phone contract, let alone a home loan,” de Lange explains.

The problem is compounded by the country’s alarming debt burden. The average South African spends nearly 70% of their take-home pay on debt repayments—a figure that soars to 76% for those earning under R5,000 per month. “When so much of your salary goes to debt, it’s no surprise that people turn to debt review for relief. But eventually, everyone wants their financial freedom back—and that’s where things get tricky,” he says.

The Legal Way Out

According to de Lange, there are only two legal ways to exit debt review:

• No Court Order Yet? If your debt counsellor hasn’t filed the court application (Form 17.2), you can simply opt out.
• Court Order in Place? If your profile is flagged “D4,” you’ll need to either:
  • Apply to the Magistrate’s Court (under Section 87 or 165) to be declared no longer over-indebted, or
  • Obtain a Form 19 clearance certificate from a registered debt counsellor after fully settling your debts.

“There are no shortcuts once a court order is in place,” de Lange stresses.

Beware the Scammers

De Lange also warns of scam artists promising instant or “free” removals. “If someone claims they can delete your debt review status without a court order or certified clearance, it’s a scam,” he says. Not only do such promises often involve fake clearance documents and identity fraud, but they could leave you in an even worse financial position.

How to Protect Yourself

De Lange shared practical steps for those wanting to exit debt review safely:

• Check your status: Are you flagged “D4” or not?
• Use legal channels: Only the court or an NCR-registered debt counsellor can remove your debt review status.
• Get a clearance certificate (Form 19) after full payment and ensure credit bureaus update your profile.
• Avoid “too good to be true” offers—because they usually are.
• Investigate potential refunds: Courts are upholding consumer protections, and you may be entitled to claim back overpaid interest.

“Debt review was created to protect you. But if you’re ready to exit, do it the right way. Don’t let scammers take advantage of your situation.”

About Milaw Legal

Milaw Legal is a debt management company committed to empowering South Africans in their battle against debt. With over a decade of expertise in financial services, the organisation offers a range of high-calibre debt relief services tailored to meet each individual's unique needs, including debt review removal, judgment removal, and affordable distribution. Guided by values of integrity, empathy, and innovation, Milaw Legal provides personalised and comprehensive legal services, ensuring clients achieve financial stability and long-term success.

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