Debt help and debt relief is available if you seek an alternative to debt review. If you find yourself over-indebted, you have several debt help and debt relief mechanisms at your disposal under South African Statutes, which go beyond debt review or debt counselling. With our experience in debt settlement negotiation, sequestration, insolvency law, and overall consumer credit law, encompassing the National Credit Act, Insolvency Act and the Consumer Protection Act, we provide debt help and debt relief for over-indebted consumers, beyond debt review. Our legal expertise allows you to achieve at least one of three results:
restructured credit agreements and reduced debt repayments
partial repayment of debts only, or
total write off of debt
We can assist over-indebted consumers who do not wish to undergo debt counselling, or consumers who cannot afford the debt review anymore, to find practical legal solutions to overcome financial difficulties. We develop a thorough understanding of your finances and most importantly your short-term and long-term objectives in order to find a tailored and suitable debt relief solution to your over-indebtedness. Some options for debt relief are displayed below. You may also wish to complete a query form at the end of this page, or contact us directly via email at info@legalrights.co.za.
All queries are responded to in writing within 24 – 48 hours and the response is sent from info@legalrights.co.za . Should you not receive a response, please contact us as per the following details:
Voluntary Sequestration also known as Voluntary Surrender, or bankruptcy, is an alternative to debt counselling and results in a ‘once-off’ solution, in that it has the effect of 80% of the debt being “written off”, and creditors can claim only a fraction of the total outstanding amount.
Creditors will often allow for discounted repayment of old debt. Negotiating settlement requires acute knowledge of practices that are allowed and what is prohibited in terms of credit extension. Sometimes, we can get the creditor to write off the entire debt.
As with sequestration, the liquidation of a company deals with finalising the affairs of the company by tracing its assets, taking control of them and realising them in a manner that is to the benefit of the company’s creditors.
Reckless credit is a concept born out of the National Credit Act. This is when creditors extend credit without taking heed of the regulations regarding affordability testing for consumer who apply for credit. A task usually reserved for debt counsellors, as attorneys we can also assist with reckless credit determination.
