ARE YOU FACING DEBT JUDGEMENTS? SEEK HELP FROM INSOLVENCY ATTORNEYS IN SOUTH AFRICA
Imagine a scenario where you lose your main source of income and suddenly cannot make debt payments. Your credit card payments fall behind, and the bank retracts the overdraft facility. The amount you owe is enough to cause sleepless nights. You need professional help from insolvency attorneys in South Africa.
In an attempt to prevent further legal action, you decide to first wait before calling in the help of insolvency attorneys in South Africa. You try making payments as frequently as possible, but fall behind even further. Subsequently, one morning, you see on your bank account that a summons has been issued. It is time to act fast.
The above scenario plays off in several ways daily. Thousands of South Africans struggle with debt. Indeed, the court roll is filled to the brim with sequestration applications. Regardless of how the debt mountain has grown, unless you have a means to pay creditors what is due, they will take legal action against you. Although you cannot go to jail for debt, you can be legally prosecuted for fraud related to your debt.
Here is the problem. You may be unaware of it, but many actions can be deemed fraud. For one, if you hide assets from creditors to prevent repossession or lie about your income and debt, there can be legal repercussions.
In a moment of desperation, you may initiate an action that potentially can lead to criminal charges against you. What started out as a debt problem can end up as fighting to stay out of jail. Do not let it get to that stage. The moment you realise that you cannot service debts, do not have the means to sell assets to service all the debts, and have far more liabilities than assets, it is time to call in the professional help of insolvency attorneys in South Africa.
Even your attempts to negotiate lower payments or your letter to explain that you cannot service the debt right away can give creditors the legal right to apply for your compulsory sequestration.
WHY IS IT NOT IDEAL TO WAIT FOR CREDITOR ACTION?
If the creditors apply for your compulsory sequestration, your back is against the wall. They act aggressively to minimise the risk of you disposing assets. There is little room for negotiation. The insolvency attorneys act on behalf of the creditors. They have extensive resources and expertise. You have almost no defence, unless you secure the help of experienced insolvency attorneys in South Africa.
WHERE TO GET HELP?
Though sequestration should not be the first option if you have other means to solve the debt problems, seriously consider it when judgements are piling up and you have limited time or resources to address the problem. If you have received notices of summons, then there is no time to waste.
Once the notice of your intention to voluntary sequestrate has been published, your estate is safeguarded against creditors.
The solution is to apply for voluntary sequestration with the help of our insolvency attorneys in South Africa. Get in touch for immediate assistance.
Disclaimer: This article is for information purposes only and does not constitute legal advice. Call on our attorneys for legal advice, rather than relying on the information herein to make any decisions. The information is relevant as at the date of publishing.