What happens if you don’t pay your debt in south africa?

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A judgment can only be issued after your creditors have taken certain steps, including a letter to you notifying you that you are in arrears and offering solutions, issuing a subpoena if you do not find a solution or do not respond, and contacting the court for a verdict to obtain that enables them to enforce their debts. In order to remain ethically sound throughout the collection process, collection agencies are subject to the Debt Collection Act. It is therefore crucial that consumers who have passed judgments against them and settled the outstanding judgement debts review their credit reports to ensure that this negative information no longer remains in their creditworthiness. If a collection agency harasses or intimidates you to get you to pay your debts, you can report this to the Attorney General’s Office, the Federal Trade Commission, the Consumer Financial Protection Bureau, and even the Council for Collection Agencies.

How long does it take for your debts to be written off in South Africa?

Reckless lending is when a creditor has not carried out a thorough affordability assessment at the time the loan was issued — as required by the National Credit Act (NCA). You must hire a lawyer to write a letter on your behalf to the respective lenders informing them that the debt is mandatory. If the debt is actually already prescribed, the new Credit Amendment Act prohibits interrupting the prescription after 3 years.

What happens if you don’t pay your debts in South Africa?

Although you dispute the tax liability, you are still required to pay the debt while your lawsuit is being dealt with. Taxpayers, both individuals and companies, must be fully tax compliant by filing tax returns and payments in a timely manner. If you receive a court notice and pay the debts and any additional costs before the court date, LPS will not take any further legal action against you. You can work directly with your loan providers if you have a short-term cash flow issue and make a written agreement with them to start paying off your debts.

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