How Can I Overcome My Financial Problems If I Am Under Debt Review?

Are you currently under debt review and have been paying your debt off monthly for a long time? Are you still struggling to make ends meet and fear that you may not be able to keep on paying the monthly consolidated amount? Do you constantly ask – “How can I overcome my financial problems?”

If you have answered yes to any of the questions, then know that you are not alone. Many South Africans are in the same situation, but you have the power to change yours through voluntary sequestration. Don’t wait until you miss a debt review payment. It will be too late, as the creditors then have the right to immediately take legal action and demand full payment of the debt. You risk losing everything!

The answer to your question of “How can I overcome my financial problems?”, is to apply for voluntary sequestration, which if awarded, will enable you to get rid of up to 80% of your debt once-off.

Once the application has been approved, the creditors will not be able to take any legal action to demand payment. Indeed, you will stop payment immediately, as one creditor may not be favoured above another. Our insolvency attorneys will handle the application on your behalf, and you don’t have to testify in court.

If you are under debt review, you will need to cancel your debt review, and our lawyers will send a letter to the creditors and debt counsellor to confirm that you have applied for voluntary sequestration.

Why Apply for Voluntary Sequestration When You Are Under Debt Review?

You may find that you will still have to pay for years to come to get rid of your debt. The mere thought of having to pay a consolidated monthly amount on time every month can lead to sleepless nights. If your debt review will still take years, such as when your immovable property has been included in the debt review, the only way out may be voluntary sequestration. It is a legal process and entails an application to the High Court.

However, once the order has been granted, no garnishee orders may be registered against your account. The creditors cannot ask for extra interest, and once your immovable property has been sold on auction and the creditors have received their benefits, no further claims can be made against the estate. This means that you start with a clean slate, and once financially rehabilitated, will be able to be a director of a company, in control of your financial affairs without curator permission needed to enter into credit agreements, and no longer under sequestration.

With it, you can get rid of the debt within a few months, instead of being caught up in the monthly debt cycle for years to come. If your furniture has been paid in full, you will not lose such, as a list of the furniture is submitted, and you have the opportunity to buy back the furniture at a very low price. The furniture is not removed from your house. You will be able to apply for financial rehabilitation four years after sequestration, if you own immovable property and all requirements are met.

As such, instead of having to be under debt review for another seven or more years to pay off your fixed property and other debt, you can pay off the debt within a few months and regain your financial status as rehabilitated within four years.

Speak to our insolvency lawyers about the process and let us help you overcome your financial problems through an application for voluntary sequestration.

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.