Debt does not go away without you doing something about it. If your creditors are already knocking on your door for overdue payments, and you have no means to increase your income or reduce your living expenses in order to pay the debts, then you need to get debt help today.

Truth is that most creditors do not want to go through the process of applying for your sequestration. They receive a minimum of 20 cents out of the rand and a maximum of 50 cents out of the rand for doing so. In addition, they have to prove that you are insolvent, and it is easier for them to simply attach your assets and sell the assets to pay the debts. They can still keep you responsible for the shortfall, and keep you to a written agreement to pay off the debts over a long period with steep interest rates.

Now, consider how many creditors you have, and then consider your options. If you do not have sufficient assets to sell and pay off all the debts, you need to get debt help today. If you sell your assets in order to pay off just one or two creditors, the action benefits only those creditors. The Insolvency Act of South Africa states that it is an act of insolvency to do so. This means that a creditor can apply for your forced sequestration based on the action. You are thus in a defensive position again.

You can get debt help today by means of debt review, but it is only an option if your debt can be paid off within five years through the debt review process. Some of the creditors can oppose the debt review, and if you are already behind in payments, and the debt review does not go through, you are in more financial trouble. Also consider that you will keep paying a consolidated monthly amount until all the debt is paid off, and if you pay late once or miss a payment, the debt review is cancelled, and your creditors can take immediate legal action against you. You are not debt free until the debt is paid. It can be a stressful time.

But, what to do? You can get debt help today by means of voluntary sequestration, which enables you to be in the control seat rather than the creditors. It is a suitable option if you are insolvent. To be insolvent, your liabilities must exceed your assets, and you must be unable to pay the monthly debts. You must have an income, and must have sufficient assets to ensure that the sale thereof can realise enough benefit to ensure a minimum of 20 cents out of the rand for each creditor according to their rank. The sale of assets by a court-appointed trustee must also realise sufficient funds to pay for the sequestration, as well as legal and estate administration costs.

If you meet the requirements, you can get debt help today. List your creditors, total amounts outstanding for each, monthly repayment amounts, assets, total monthly income, and your securities and assets, such as insurance policies, shares, and the likes. Submit the information to our attorneys, and they will help you assess whether you qualify for voluntary sequestration. Indeed, there is no better time than today to get the debt help you need. Should you qualify and decide to proceed with voluntary sequestration, the attorneys will publish a notice of your intention to voluntary sequestrate, will notify the relevant creditors and SARS, and submit your application to have a provisional voluntary sequestration order granted by the court.

Once the intention to voluntary sequestrate has been published, you will seize all payments to the creditors. Indeed, the interest will also be frozen. A court return date will be set, and once the final sequestration order has been given, a court-appointed trustee will manage the sale of assets and distribution of the benefits to the creditors. Once the process is completed, you will be debt-free and can start fresh. Do not delay. Get debt help today. Our attorneys will handle the application process on your behalf, and will assist in negotiating for the buyback of your furniture. They will also advise you on pitfalls to avoid, and what to do to ensure you can apply for rehabilitation as soon as all requirements are met.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Call our attorneys for legal advice, rather than relying on the information herein to make any decisions. The information is relevant to the date of publishing.