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Having Debt Problems?


What happens if you don’t pay your debts?

Debt-911 counsellors are often asked what will happen if a client simply does not pay his debt?

Below is a brief description of the process followed by lenders to re-coup their money.

Step 1

Lenders will send a section 129 letter via registered post to your last known address. This letter informs you to settle the amount owed within 10 business days, or the credit provider will proceed with the enforcement of the credit agreement through legal action. This letter also advises you to seek the services of a debt counsellor if you chose. We advise consumers to call Debt-911 as soon as such a letter is received.

Step 2

Should a consumer ignore the section 129 letter, then the lender will engage the services of the courts and a Sheriff Of The Court will deliver the summons which will afford a consumer a set period of time within which to notify one’s attorneys of his/her intention to defend the matter. If attorneys are not engaged or a person does not appear in court, a default judgement will be issued against a consumer. A default judgement will initiate the following:

Step 3

Attorneys can apply for a garnishee order (emolument attachment order). This means that a lenders attorneys will decide on an amount to be paid and will approach a court to have this amount deducted directly from one’s salary or wages before the worker receives it. This can be an arbitrary amount and will not be based on what the consumer can afford, resulting in huge financial upheaval as the payment can be so high that a person may not be able to meet his other financial commitments.

Step 4

A credit provider can apply to have one’s assets attached. A sheriff of the court can come to write up an inventory of one’s assets including house, vehicles, furniture etc. This will be provided to the attorneys who will then decide on the value of the goods which can then be put up for auction.

If the value of the goods sold does not cover the debt, then the client is still liable for the shortfall.

Another approach is if attorneys do not know where you live, or you do not have assets of value, they will ask you to appear in a section 65 enquiry before a magistrate and provide all your income and expenditure to establish if you can afford to pay your debt. If you ignore your summons, this is the only time one can be arrested for not paying your debt. In order to avoid these troubles, it is best to take a pro-active approach to tacking one’s debt. Feel free to contact Debt-911 to get on the path to debt freedom.

Contact Debt-911 Now To Explore our Instant Debt Busting Options

If you are struggling to meet your debt obligations, simply call us on the number alongside, SMS Help to 40935 or complete and submit the form alongside and a trained, registered Debt-911 counsellor will contact you to discuss your personal financial situation and give you a free consultation.