Inside Your Pocket: Getting out of debt review when your financial situation changes.

The National Credit Act allows a debt counsellor to issue a clearance certificate when a consumer has settled all obligations covered by the debt review, or shows they are able to cover future liabilities, including mortgage or other long-term obligations, provided other credit agreements have been settled in full. This allows a consumer to exit from debt review once their shorter-term debts have been settled, but without having to pay up long-term debt such as a mortgage bond.

But, if a debt counsellor refuses to issue a clearance certificate, what then? Our courts have had occasion to consider the situation of such a consumer whose ability to settle their short-term debt obligations has improved, but a clearance certificate is being refused.