Civil Litigation and Debt Collection

 

 

 

You may qualify for debt review in South Africa if you meet the following criteria

  • Over-Indebtedness: You are struggling to meet your debt repayments, have fallen behind, or are at risk of falling behind on your payments.
  • Regular Income: You must have a consistent monthly income. Unemployment generally disqualifies you from debt review.
  • Importantly, you can qualify for debt review even if you are blacklisted or have a poor credit record.  These factors do not automatically disqualify you.

Under debt review, managing your debt repayments becomes significantly easier.  Instead of juggling multiple payments to various creditors, you'll make just one affordable monthly payment to a Payment Distribution Agency (PDA).  The PDA then handles the distribution of these funds to your creditors according to the agreed-upon repayment plan.

  • Affordable Repayment Plan Your debt counsellor will work closely with you to create a budget-friendly repayment plan, carefully considering your income and expenses.  This plan often involves reduced monthly installments and a possible extension of the overall repayment period.
  • Creditor Approval Once finalized, the repayment plan is submitted to your creditors for their approval.  Upon agreement, they are legally obligated to cease all debt collection efforts, including calls, letters, and legal action.
  • Single Monthly Payment You'll then make your single monthly payment to the PDA.
  • Distribution to Creditors The PDA efficiently distributes the funds to your creditors according to the approved repayment plan.  They will deduct a small, regulated fee for their services, which is typically included in your monthly payment.

At Aucamp Attorneys, we guide you through this process, ensuring you understand how payments work and supporting you every step of the way. Contact us today for a consultation.

Every debt review journey is unique, and the timeframe varies depending on individual circumstances. While the average debt review process typically takes between 3 and 5 years, several factors can influence the duration.

  • Total Debt- The amount of debt you have accumulated will naturally impact the repayment timeline. Larger debts may require a longer repayment period.
  • Affordability- The amount you can realistically afford to repay each month is a key factor. Higher payments will shorten the debt review process.
  • Commitment- Consistent adherence to your repayment plan and making any additional payments when possible will accelerate your progress toward becoming debt-free.

At Aucamp Attorneys, we'll work with you to develop a personalized debt repayment plan tailored to your specific situation, keeping you informed and supported throughout the process. Contact us today for a consultation.

Struggling with debt?  Consider your options carefully.  Over-indebtedness often disqualifies you from consolidation loans. Debt review, under the National Credit Act, protects your assets from legal action while you repay debt, unlike consolidation loans.  Our debt review process consolidates payments, reduces repayments and interest, and can clear your credit record.  If over-indebted, debt review is usually the better choice. Contact Aucamp Attorneys for a consultation.

In the majority of debt review cases in South Africa, you will not need to appear in court.  Your appointed debt counsellor or legal firm will typically handle all court proceedings on your behalf.  This simplifies the process and reduces stress for those undergoing debt review.

The only time you would likely need to attend court is if there is a dispute with one or more of your creditors that cannot be resolved through negotiation or other out-of-court methods.  In such a situation, your presence might be required to provide information or clarify specific issues.

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What is Credit and Debt Review

In South Africa, credit and debt review is a legal process governed by the National Credit Act. It provides a solution for individuals struggling with debt management.  A registered debt counsellor assists in restructuring repayments with creditors, enabling more affordable monthly installments and preventing legal action.  Essentially, credit and debt review offers a structured way to manage overwhelming debt by negotiating new, manageable repayment terms with lenders, helping you regain financial stability. Contact Aucamp Attorneys today to discuss whether credit and debt review is the right path for you.

Benefits of Debt Review

Facing overwhelming debt can be stressful and confusing. Debt review, a legal process under the National Credit Act, offers a structured path to financial recovery.  Here's how it can benefit you

  1. One Affordable Monthly Payment Simplify your finances with a single, reduced monthly installment covering all your debts.
  2. Reduced Installments & Interest Rates We negotiate with your creditors to secure reduced monthly payments and lower interest rates (where possible).
  3. Hassle-Free Creditor Management We handle all communication with your creditors, so you don't have to.
  4. Protection from Harassment Creditors will no longer be able to contact you directly regarding collections.
  5. Structured Repayment Plan A clear, manageable repayment plan with a defined exit date gives you a tangible goal to work towards.
  6. Improved Cash Flow You'll have more money available to cover your essential living expenses.
  7. Asset Protection Your assets are protected from legal action by creditors during the debt review process.
  8. Debt-Free Future Successfully complete the debt review process and emerge debt-free, ready to rebuild your credit.
  9. Reduced Credit Life Insurance Premiums You may experience a reduction in your credit life insurance premiums.

Contact Aucamp Attorneys today to discuss how debt review can help you take control of your finances and achieve a debt-free future.

The Debt Review Process

Navigating debt can be overwhelming. In South Africa, debt review offers a structured solution. Here's a breakdown of the process

  1. Consult a Registered Debt Counsellor Contact a debt counsellor registered with the National Credit Regulator (NCR) to discuss your financial situation. This is your first crucial step.
  2. Provide Financial Documents Gather all necessary documents related to your income, expenses, and debts. This information is essential for a thorough assessment.
  3. Financial Assessment The debt counsellor will review your financial information to determine if you are over-indebted and eligible for debt review.
  4. Debt Repayment Plan Negotiation If deemed over-indebted, the debt counsellor will negotiate with your creditors to create a manageable repayment plan tailored to your circumstances.
  5. Court Application The debt counsellor will submit the proposed repayment plan to the court for approval, seeking a formal debt review order.
  6. Payment Distribution Once the court grants the debt review order, you'll make a single monthly payment to a Payment Distribution Agent (PDA), who will then distribute the funds to your creditors according to the approved plan.

Key Considerations

Governed by the National Credit Act: Debt review is a legal process under the National Credit Act, designed to assist over-indebted consumers.
Impact on Credit Score: Entering debt review can negatively affect your credit score. It's important to weigh all options before proceeding.
Legal Protection: A debt review order provides legal protection from creditors while you adhere to the agreed-upon repayment plan.

At Aucamp Attorneys, we can guide you through every step of the debt review process. Contact us today for a consultation to discuss your options and determine if debt review is the right solution for you.