Are You Tired of Debt and Seek a Workable Solution?

Are you struggling to make monthly payments to creditors and dread having to answer calls because you fear more harassment from the creditors? Are you tired of debt? Are you looking for a way to pay off your debt completely, without adding to your debt burden with a consolidation loan? Do you own property and have assets?

If you have answered yes to any of the above questions and are tired of debt, there is a solution. Perhaps it is not the one you hoped for because by now, you may just want all the debt to disappear. Unfortunately, it doesn’t work that way. Debt made must be paid, but the question is how to do so, if your income is simply not enough?

One solution is debt review, but it is only viable if the debt owed can be paid off within a period of two to five years. If it will take you longer and you do have an income and assets, consider voluntary sequestration.

With voluntary sequestration, you will apply to court to be declared bankrupt. The court will only award the status if you can prove that you are really insolvent. In addition, the court will only do so if you have 10 cents to 20 cents out of the rand (depending on the creditor status) available from the selling of your assets on auction.

The voluntary sequestration will enable you to pay off up to 80% of your debt. You will be expected to pay the remainder in one lump sum payment or, if not possible, through down payments over a short period as set by the court. However, there will be no added interest, which means that you will be able to do so within the allowable period.

Unlike with debt review, which can keep you in debt for several years, voluntary sequestration makes it possible to become completely debt-free in a relatively short period. It is not a payment holiday and the debt doesn’t magically disappear, but it does give you the freedom of not being tied to debt anymore.

If you fear that you will lose your furniture, keep hope! With the assistance of insolvency lawyers, it is possible to negotiate for the furniture to be bought back at the valuation price, which is considerably lower than you would pay for new furniture. The furniture will be written up, but not removed from your house. You will then buy back the furniture, and as such, you don’t have to fear being left without a lounge suite or beds.

In addition, any tools of trade will be excluded. This also applies to your children’s assets. It is also possible to negotiate to still drive your vehicle and pay it off. Your immovable property will be sold on auction though, but you will have enough time to find a new abode. Without the debt hanging over your head, you will be able to financially recover and apply for financial rehabilitation.

If you are tired of debt and long to be debt-free, make use of our legal assistance to help you with the voluntary sequestration application.

Disclaimer: The information in this article is for information purposes only and not intended as legal advice. We strongly recommend that you seek professional legal advice before solely relying on the information herein. The information supplied is relevant to the date of publishing – August 2017.