Debt Erazer
DEBT ERASING
Voluntary Sequestration:
Over-indebted consumers have the option of applying for voluntary sequestration also known as voluntary surrender. This process is possible where the consumers’ liabilities exceed their assets and there is a sufficient dividend or reasonable prospects that a sufficient dividend can be realised if the consumer is sequestrated. One effect of sequestration is that one’s debt is “written off” and the creditors must submit all their claims to the Trustee of the insolvent estate who is appointed by the court once the sequestration application is granted. Click Here to find out More.
Liquidation of a Company:
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. The proceeds are applied firstly for the payment of creditors according to the rating of their preferences, and thereafter the distribution of the residue among shareholder according to their rights. Click Here to Find out More.
Debt Settlement Negotiation:
Consumers who want to settle any debt must keep in mind that many creditors will offer a reduced settlement amount. This is generally a discounted amount of the outstanding balance and is valid for a limited period of time. Factors such as how “old” the debt is, the amount of the claim, whether any legal action has been taken pursuant to the claim arising can also affect the debt settlement negotiation process and the final settlement amount offered by the creditor. Besides negotiating a settlement of the capital amount, interest, legal fees and interest must be checked to ensure that such charges are in accordance with the National Credit Act 34 of 2005. Click Here to find out more.
Reckless Credit Determination:
The granting of reckless credit does not by itself entitle a consumer to approach a court to obtain a declaration that the credit agreement is reckless. Reckless credit is an ancillary consideration. A court is only entitled to consider whether a credit agreement is reckless when that credit agreement is already before the court for some other reason, such as a credit provider attempting to enforce that credit agreement or a consumer attempting to obtain a Debt Restructuring Order. Click Here to find out more.