Can I Keep My Car During Debt Review?
Yes, you can keep your car during debt review. In fact, protecting your assets—including your vehicle—is one of the main benefits of entering debt review.
This is one of the most common concerns I hear from clients, and I understand why. Your car isn't just transport; it's how you get to work, take your kids to school, and live your daily life.
How Debt Review Protects Your Car
When you enter debt review, you receive legal protection under Section 86 of the National Credit Act. This means:
Creditors cannot repossess your car while you're making your agreed payments under the debt review plan.
No legal action can be taken against you for the debts included in your review.
Your vehicle finance is restructured along with your other debts, often at a lower interest rate.
The Catch: You Must Keep Paying
Protection isn't automatic—it depends on you meeting your obligations:
- Make your restructured payments on time, every month
- Don't skip payments without communicating with your debt counsellor
- Follow the payment plan agreed with the court
If you consistently miss payments without valid reason, creditors may apply to the court to have your debt review terminated, which could put your assets at risk.
What Happens to Your Car Finance?
Your vehicle finance is included in your debt restructuring. This typically means:
Lower monthly payment spread over a longer term
Reduced interest rate negotiated by your debt counsellor
One combined payment that covers your car and all other debts
Your car payment doesn't disappear—it becomes part of your affordable monthly amount.
Can I Buy a New Car During Debt Review?
No. While under debt review, you cannot take on new credit. This includes:
- Vehicle finance
- Personal loans
- Credit cards
- Store accounts
This might feel restrictive, but it's actually protective. It prevents you from falling deeper into debt while you're working your way out.
Once you complete debt review and receive your clearance certificate, you can apply for credit again.
What If My Car Is Already Being Repossessed?
If you're already facing repossession threats, time is critical. Entering debt review can halt the process, but you need to act before the repossession is finalised.
Contact a debt counsellor immediately if you've received:
- Letters of demand
- Section 129 notices
- Summons related to your vehicle
The sooner you act, the better your chances of keeping your car.
Real Talk: When You Might Lose Your Car
I believe in being honest. There are situations where keeping your car may not be possible:
If you're already in legal proceedings that have progressed too far
If you can't afford even the restructured payment for a very expensive vehicle
If you've already surrendered the vehicle voluntarily
In these cases, we'll discuss all your options openly during your consultation.
The Bottom Line
For most people entering debt review, keeping your car is absolutely possible. The process is specifically designed to help you maintain your lifestyle while getting out of debt responsibly.
---
Worried about your car? Fill in the contact form and I'll honestly assess your situation and explain exactly how we can protect your assets.