In some cases, the debtor may be brought to court and required to pay the debt plus interest, fees, and court costs. Remember that the sequestration process is set up to ensure that creditors can receive the minimum benefit. In around a third of countries, debtors can be arrested if they fail to comply with a court ruling resulting from a lawsuit. If you are unemployed and in debt in South Africa, there are a few steps you can take to improve your financial situation.
What happens if you don’t pay your debts in South Africa?
For example, you may not apply for a new credit card during the debt check. If you use your existing credit cards while paying off any outstanding debts, there is a higher risk that your debt review program will stop. Book your free confidential debt consultation with a local Sands%26 Associates Licensed Insolvency Trustee today for debt advice and debt management solutions. You need to know what’s expected of you once you’ve signed your repayment plan agreement so you don’t put your personal finances at risk, Overbeek said.
How long does it take for debts to be written off in South Africa?
However, it is still legal for creditors to demand payments or call consumers to get them to recognize a prescribed debt and even sue a prescribed debt for arrangements that are not covered by the National Credit Act. According to the law, lenders must inform a debtor that legal proceedings will be initiated before they do so and then inform the consumer of the right he or she has. Topics such as prescribed debts, when legal action can be taken, your rights and much more are discussed.
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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.