So, times have become tough and you can't afford to pay your rent whilst having to care for your family and now you lie awake at night seeing no way out...
This is no situation in which any of us would like to be and definitely not the type of situation in which any of your creditors would like to see you either.
If you are the type of person who chooses to happily run from creditors and avoid paying this article is not for you. In fact- with our laws as they are today- you don't need legal advice. You need to take responsibility.
If you however are the type of person who does not want any judgments against his name and who prefers to pay all your debts, even if you can't afford to do so due to circumstances beyond your control, I am here to tell you how to protect your assets- especially if you did not safely put it away in a Trust or a Company. What I say also applies to those among you who do not have assets of any great monetary value.
Debt counselling is unattractive to many of us, because it gets noted on your credit record. Still- it has the most basic solution to managing your debts. When your income has dropped to a point where you are not able to meet all your obligations a debt counsellor takes your income and makes arrangements with creditors to pay debts off in affordable installments while leaving a large enough portion of your income for you to cover your living expenses.
It sounds fairly simple, right? So- why can't you do it yourself? Surprisingly- the answer is not that you are not allowed by law to do so, but it is because most creditors are not willing to accept offers to pay debts off in installments. That is, however, until they have obtained judgment against you and the court tells them to.
So- the important thing about making an offer in writing or proposing an arrangement is the timing.
Now- I assume we all know that your creditor is not allowed to take any of your possessions by himself or to use any violence or threat thereof in collecting monies due. Your debt does not preclude you from getting the protection of the courts and the police if any of your creditors does act in this manner. If a creditor wants to enforce his debt he has to sue. For this most creditors need a lawyer and it is at the stage when you know that a lawyer has been appointed that you make your offer.
This sounds bad- I know. The truth, however, is that most creditors are unwilling to make any arrangements with you until their lawyers have talked some sense into them and in some cases, only after the court has told them to accept the installments.
The more cynical among creditors may believe that you are merely pleading poverty to mislead them. If that happens the closest they can get to being convinced will unfortunately only come after judgment has been obtained against you, allowing the creditor to have the Magistrates' Court in your district conduct an inquiry into your financial position.
The best you can do to avoid this is to make the best offer that you can manage and to not prioritise luxuries over your commitments.
If an arrangement is in place and accepted by both parties it has to be in writing and kept to. Sure- it binds you, but it also protects you. In many instances it also tells you when you will be done paying.
It is important to note that debts in respect of which you are not sued prescribe (lapse) after 3 years. A in respect of a debt for which you are sued, on the other hand, stays valid for 30 years.
There really is no other way of overcoming debt other than taking responsibility and doing your part. Hopefully the advice in this article will bring at least some of you peace of mind.
This is no situation in which any of us would like to be and definitely not the type of situation in which any of your creditors would like to see you either.
If you are the type of person who chooses to happily run from creditors and avoid paying this article is not for you. In fact- with our laws as they are today- you don't need legal advice. You need to take responsibility.
If you however are the type of person who does not want any judgments against his name and who prefers to pay all your debts, even if you can't afford to do so due to circumstances beyond your control, I am here to tell you how to protect your assets- especially if you did not safely put it away in a Trust or a Company. What I say also applies to those among you who do not have assets of any great monetary value.
Debt counselling is unattractive to many of us, because it gets noted on your credit record. Still- it has the most basic solution to managing your debts. When your income has dropped to a point where you are not able to meet all your obligations a debt counsellor takes your income and makes arrangements with creditors to pay debts off in affordable installments while leaving a large enough portion of your income for you to cover your living expenses.
It sounds fairly simple, right? So- why can't you do it yourself? Surprisingly- the answer is not that you are not allowed by law to do so, but it is because most creditors are not willing to accept offers to pay debts off in installments. That is, however, until they have obtained judgment against you and the court tells them to.
So- the important thing about making an offer in writing or proposing an arrangement is the timing.
Now- I assume we all know that your creditor is not allowed to take any of your possessions by himself or to use any violence or threat thereof in collecting monies due. Your debt does not preclude you from getting the protection of the courts and the police if any of your creditors does act in this manner. If a creditor wants to enforce his debt he has to sue. For this most creditors need a lawyer and it is at the stage when you know that a lawyer has been appointed that you make your offer.
This sounds bad- I know. The truth, however, is that most creditors are unwilling to make any arrangements with you until their lawyers have talked some sense into them and in some cases, only after the court has told them to accept the installments.
The more cynical among creditors may believe that you are merely pleading poverty to mislead them. If that happens the closest they can get to being convinced will unfortunately only come after judgment has been obtained against you, allowing the creditor to have the Magistrates' Court in your district conduct an inquiry into your financial position.
The best you can do to avoid this is to make the best offer that you can manage and to not prioritise luxuries over your commitments.
If an arrangement is in place and accepted by both parties it has to be in writing and kept to. Sure- it binds you, but it also protects you. In many instances it also tells you when you will be done paying.
It is important to note that debts in respect of which you are not sued prescribe (lapse) after 3 years. A in respect of a debt for which you are sued, on the other hand, stays valid for 30 years.
There really is no other way of overcoming debt other than taking responsibility and doing your part. Hopefully the advice in this article will bring at least some of you peace of mind.
