Real Estate Investor Magazine South Africa July 2013 | Page 33
RESIDENTIAL
removed. Some credit bureaus require that you
also complete a Rescission Form. Remember,
the credit bureaus have up to 20 business days
to remove the information.
f. Bankruptcy/insolvency is a last option to
consider only in extreme circumstances if
you cannot settle the payments or come to
a negotiable settlement, but it is an option.
Sometimes a person may find that he cannot
be sequestrated as he does not have sufficient
assets to prove to the court that there will
be a benef it for creditors when his assets
are liquidated and distributed amongst his
creditors and then a court may refuse to grant
a sequestration order. Normally you could
first opt for debt review, debt administration
or assistance in payment arrangements by an
attorney.
Step 8 - Opting for Debt Administration
Meyer de Waal says that an application for
debt administration does not constitute a
100% proper blacklisting. So what actually
happens?
W hen t he consu mer appl ies for debt
administration, a copy of the court application
is served upon the consumer’s credit providers.
Usually, at this point, the credit providers opt
to make a note on the credit bureaus’ sites to
indicate (warn) that the consumer is under
debt administration.
This action by the credit prov iders is
usually a measure to ensure that they do not
extend any further credit to the consumer,
without knowing that he/ she is under debt
administration and / or without obtaining the
written consent of the consumer’s appointed
administrator [it’s compulsory to obtain consent
as per the NCA – S89 (2)(a)(ii)].
Usually consumers, who are placed under
debt administration, are those consumers who
cannot be helped through debt counselling, as:
1. the installments that they are able to offer
could be too small;
2. one or more of the credit providers have
already taken legal action and as such those
accounts cannot be rearranged through debt
counselling;
3. there are one or more garnishee orders against
the consumer and the only way to address those
specific debts (and have the garnishee orders
cancelled) is through debt administration.
Typically, the consumer who is placed under
debt administration is not an ideal candidate
for sequestration, as the consumer would not
have enough assets or any assets, which could
be liquidated in the sequestration process.
The Magistrates Court Act 32 of 1944
limits the amount of debt to be placed under
administration at R50 000.
Step 9 - Opting for debt counselling or
debt review
Debt counselling or debt review is another
pro ce s s t h rou gh wh ic h ov er-i ndebte d
consumers are assisted. In these cases, there is
no limit o ? H[[?[??X? ?X???[?B?X?Y [?\?X? ?]?Y]?H??H[ ???Y?\?X???[??[?? ? ?Y?\?\????[Y\?? [?\??X? ?]?Y]?? H ?]\???Y]?\?X]\?
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