Our company consists of experienced debt counsellors who ensure that applications are handled effectively with great emphasis being placed on accuracy.
Debt Counselling, Sequestration & Administration
Definition of Debt Counselling
Debt Counselling can be summarised as a procedure whereby a consumer who is over-indebted applies to have his monthly credit obligations lowered.
You can consider yourself over-indebted when:
Your expenses exceed your income
You neglect some accounts in order to pay others
In summary, here are the ways in which debt counselling can help you:
Reduced monthly payments.
Reduced interest rates (wherever possible)
Protection of your assets & goods.
Tangible relief from over-indebtedness
Debt Counselling Explained:
This application is done in terms of the National Credit Act (NCA) 34 of 2005. All credit agreements are liable for inclusion in the application, with the exception of accounts on which legal action has commenced. Service agreements (telephone bills, doctors’ bills etc.) are by default excluded from the Debt Review process, however there are certain exceptions (for instance if a collector is handling the account and charging interest).
Upon applying for Debt Review, all of your creditors are notified of your intent to be placed under Debt Review and the relevant Credit Bureaus are notified. Your name will be listed on all of the major Credit Bureaus as a person who has applied for Debt Review and you will not be able to make any additional loans or enter into any credit agreements while being listed. The listing will remain against your name until you either (a) cancel your application, (b) your application is rejected by the Debt Counsellor, (c) your Debt Counsellor removes you due to non-payments or (d) all of your debt is settled and you are issued a clearance certificate.
Once the application has been approved negotiations with your creditors are initiated by your debt counsellor for the decreased instalments. This process normally lasts about 60 business days. Once all negotiations have been finalized the application is taken to court and a Court Order is obtained, which acts as a new contract between you and your creditors
It is vitally important that you pay according to the granted order, or your credit providers could have your credit rehabilitation terminated and proceed with regular collection procedures.
Although the process might at times feel uncomfortable and challenging, we strongly suggest that endure and see the process through to the end. A Credit Bureau listing that states that you are “no longer over-indebted” will inspire more confidence from credit providers with whom you might apply with in the future.
What is Sec 74 Administration
An administration order refers to a court-granted order in which a consumer is ordered to pay a pre-determined amount towards his debt each month. This amount is deducted from your salary via a garnishee order. Existing garnishee orders are removed in the process.
Administrators negotiate with your creditors on your behalf for the lowest acceptable premium. The process simpler than Debt Review and is generally granted by the court sooner. The lower instalments do however cause the remaining term to be extended rather substantially.
When to choose administration:
When you have existing garnishee orders against your salary
When your total debt is less than R 50,000
Where legal action has been taken against you on one or more of your accounts
When the payments required by your creditors exceed your means.
What is Sequestration
Sequestration is a legal process by which a consumer is declared insolvent by the Honourable High Court. All of the consumer’s remaining assets are handed over to a trustee who in turn proceeds to sell the assets according to the rules and regulations of the Insolvency Act.
Sequestrations can be either voluntary or obligatory. Voluntary sequestrations are very costly as you need to appoint an advocate to represent you in the Honourable High Court. You also need to be able to pay back roughly 12% of your outstanding debt immediately.
Obligatory sequestrations occur when your creditors believe that you have sufficient assets to ensure that they will receive back what is owed to them and they approach a law firm in order to have you forcibly sequestrated.
When you go under sequestration, your entire estate is liquidated. This means that all of your property, vehicles or other assets that are registered under your name will be auctioned off to the benefit of your creditors. When you undergo sequestration your name will remain on the Credit Bureaus for a minimum period of ten years, after which you need to apply to court in order to have your name cleared.
The most significant benefit that you gain from sequestration is that all of your debt will be settled. Once the process is complete, none of your accounts will remain owing.
When to choose sequestration:
When Debt Counselling or Administration cannot offer the solutions you require
When you have assets to liquidate
When you have a large capital amount to pay towards legal fees and at least 12c/R on what is owed.
Contested matters are handled by the legal department. This department is responsible for the preparation of all court documents and ensures that the documents are submitted before the 60 (sixty) day period prescribed by law, expires. In addition to debt counselling matters, the legal department also handles administration orders. All other legal matters are referred to MC Rijkheer Inc. who proved a friendly service. These matters include divorce cases, private adoption cases, maintenance and child maintenance cases, drafting of a client’s Last Will and Testament as well as other legal matters our clients may need assistance with.
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Bloemfontein Head Office
Address: 41 Kellner Street, Westdene, Bloemfontein
Email Address: firstname.lastname@example.org
Contact Number: 051 448 8462
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