You Could get Professional Help to Get Out of Debt

There can be few situations in life more stressful than that of being faced with a mountain of bills whilst being quite certain that you have no means with which to settle them all. It is bad enough to accept that the family car or flat-screen TV could be repossessed, but when you can no longer pay the rent or meet the bond repayments on your home, or cover the monthly water and lights charges, the consequences are no longer a mere inconvenience but a potential disaster.

Sometimes it may be possible to reverse your circumstances with a few judicious economies such as stopping all credit purchases, some careful budgeting, negotiating with creditors, and perhaps arranging a consolidation loan. However, once it becomes apparent that these measures are still insufficient, it is time to get some professional help with your problems and, with it, to get out of debt.

If you are not already facing court proceedings, it might be worth approaching a debt counsellor who can quickly determine whether there are viable options other than simply declaring yourself insolvent. Sadly, when your total debts exceed that of all your sources of income, it remains the best option. There is no doubt that the common connotations surrounding the terms insolvency and sequestration can strike terror into one’s heart. However, sequestration could prove far preferable to the alternative of losing you possessions and possibly still having to make up the shortfall if your assets prove to be insufficient.

The reality is that this is a perfectly legal option and one that will allow you to get the help that you need and to get yourself out of debt. While you will face some restrictions for a while, the benefits outweigh them and, in time, you will regain your good standing and your financial credibility. So, what does the process entail?

It begins by approaching an insolvency practitioner who will examine your case and determine if there is any viable alternative. If not, they will prepare documents for SARS, the Master of the High Court, and your creditors, detailing your assets and liabilities, apply for a court date, and publish public notifications of your intention to sequestrate before passing on the details from which to prepare your case to an attorney. Your case must then be presented to the High Court by an advocate who will notify your attorney of the outcome.

Once sequestration is granted, the most immediate and obvious benefits are that your debt will be reduced by 80%, and that no further interest will accrue to the outstanding balance. Also, any legal proceeding against you will be stayed and your future income protected from garnishee orders, and monthly payments due to creditors will now be well within your income. Reimbursement to your creditors will be handled by a court-appointed curator. In exchange, a block on credit is a small price.

To get the necessary help and get out of debt entails a professional fee but this too will be included in the monthly instalment. Once the debt is repaid, you can apply for rehabilitation and a return to normality. If your financial position appears untenable, why not discuss sequestration with an Insolvency Care practitioner?