A debt review flag has a notably bad effect on your overall credit score. Therefore, many of you would like to know if there is a way to remove a debt review flag once all the debts are settled. In this article, we will discuss how this can be done easily.
A clearance certificate?
It is possible to remove the debt review flag from a credit report, but there’s a certain number of steps that you need to take before removing it. The first instance when a debt review flag can be removed is when you are entitled to a clearance certificate.
A clearance certificate is issued free of charge by the debt counsellor and it’s an important document that can help you remove the debt review flag. This certificate is issued when you’ve paid up all the accounts under debt review or you’ve paid up all your accounts but you still have an outstanding home loan.
How does the clearance certificate benefit you?
This way of removing a debt review flag is the best solution because the debt counsellor must issue this clearance certificate within seven business days of you paying up all your accounts. Moreover, the whole process is entirely free.
This means that you will finish the whole process quickly and with no expenses. The clearance certificate will help you improve your chances to better your credit report status.
It’s recommended that you first try this solution before deciding on any other alternative since this is by far the easiest.
When should you opt for the court-application?
It would be best if the aforementioned method helps you solve the problem, but there is also a way to get everything right even if you do not qualify for a clearance certificate.
If for some reason you are not able to qualify for a clearance certificate, you have the option to move a court application. The court application allows you to be declared not over-indebted.
You can also file a court application and rescind your debt review order. Such court applications are being granted in most of the courts, but it’s not a rule as it depends upon the will of the judges.
Will all the judges accept your court-application?
Some judges question the application, which means that there are no guarantees that you will succeed as it depends upon various factors. In most cases, both the methods that we mentioned here would guarantee your success. On the other hand, it’s good to be prepared for any scenario and think of the alternatives.