During this period, it is possible for a debtor to refuse to pay the outstanding debts, provided that the summons have been issued in advance. B) No one may continue collection or reactivate a debt under a credit agreement to which this Act applies -. No creditor of consumer debt, including credit cards, medical debts, payday loans, mortgages, or student loans, can force you to be arrested, jailed, or put into any type of court-ordered community service.
Can you go to jail for not paying debts in South Africa?
If the person receiving the child support (such as your ex-spouse) is filing for a court hearing for your failure to pay and the judge finds that you could have paid child support but did not, the court could order a prison sentence. Under the National Credit Act, such a loan is required as soon as a lender does not claim payment of the money for a period of three years. The reason is that failure to pay your taxes or child support is a federal crime that can be classified as contempt of court.
What happens if you don’t pay your debts in South Africa?
A verdict will state that you have not paid your debts and it will be reflected in your credit rating for 5 years. It can be tempting to pursue debt relief options that get you off the hook with creditors without having to repay your debts. When a verdict is passed, a creditor can apply for an arrest warrant that allows the sheriff to install goods such as your furniture and sell it to pay off your debts. When making credit decisions, credit providers assess a consumer’s debt portfolio in various ways to determine credit risk.
References:
- Can you go to jail for debt in South Africa?
- Can I Go To Prison For Not Paying My Debts? – Martin Pike Inc
Barry Ritholtz is a renowned finance expert, author and blogger. With over 30 years of experience in the financial industry he has gained a reputation as a thought leader and influencer in the investment community.