Debt-911 operates in greater Johannesburg, Pretoria, the East Rand, in fact, all of Gauteng, Mpumalanga, the North West and Limpopo provinces and assists over-indebted consumers from having their assets repossessed.
Debt stressed consumers who have opted not to enter the debt counselling process ought to be aware of how to avoid having one’s hard won assets seized.
How to avoid having your precious assets reposed.
Falling into arrears on your vehicle, home or furniture repayment obligations could lead to its repossession by your bank. Lenders are legally entitled to recover their assets. Before this can occur however, a court order will have to be issued and it must bear the court stamp before it can be considered a legally binding repossession order.
Once your vehicle, house or goods have been repossessed, they can be sold and the proceeds (less legal and auctioneering costs) be offset against your debt. The auctioneer’s only obligation is to sell your goods for a reasonable price and this very often may not cover your debt obligations, meaning that you will still be responsible to cover the shortfall.
If you are unable to afford the balance, then you can enter into an agreement with the lender to pay off the balance monthly. Be sure to have a written agreement in place before you pay anything against the shortfall.
Should the lender not allow you to pay off the difference and insist on a lump payment however, you as the consumer can refuse to accept their demands on the basis that it could have a deleterious effect on your ability to maintain priority expenses.
If the creditor refuses to negotiate the payment of the shortfall, he can:
Hand over the debt to a debt collector who could sue you for the right to claim deficiency which if he wins may lead the client to:
- Place a lien on your assets, preventing you from borrowing against or disposing of an asset.
- Seize a client’s assets with the objective of disposing of it and the proceeds being used to offset the balance.
- Impose a garnishee order or emolument order on your salary
- Write off the debt and report it to the credit bureaus as uncollectable.
Debt-911, your trusted debt counselling partner
Are you worried about your ability to afford your debt repayments? If so simply call us, SMS Help to 40935 or fill out the form alongside and a highly trained, Debt-911 counsellor will make contact with you to assess your personal financial situation and give you free advice.