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F.A.Q. - sadebtsolutions.co.za
  • CALL US NOW: 083 357 0650
  • Email: sampie@sadebtsolutions.co.za

Got questions? We have answers.

We know this can be a daunting process, but rest assured you are in good hands. The more you understand the process the more at ease you will be following all the steps with us. Below is some of the most asked questions from our customer base. 

[vc_heading title=”Debt Review Questions” subtitle=”FAQ’s” position=”center”]

What is Debt Counselling and should I use it?

Debt Counselling was formally introduced by the National Credit Act to help over-indebted consumers, especially in our current economic crisis. The goal of Debt Counselling is to develop a repayment plan which is affordable to you, as well as acceptable to all your credit providers. It is there to help you.

When will I experience relief?

You will immediately experience the relief that we offer. All creditors can call us from now on and stop phoning you.

With Debt Counselling, we will work out a provisional repayment plan for you which you will be able to afford. In terms of the provisional repayment plan, you will make a single payment to a Payment Distribution Agency, who will distribute the money according to your plan. During the first 60 working days, your Credit Providers will not be allowed to implement action against you. During this time, we will prepare your final repayment plan.

With Sequestration or Liquidation, you will experience similar relief.

Do I have to engage in a consultation at the SA Debt Solutions Office?

With Debt Review the whole process can be finalized telephonically and by e-mail, no matter where you stay in South Africa.

How does SA Debt Solutions lower my payments?

In terms of the National Credit Act we, as Debt Counsellors, are allowed to lower your monthly payments by extending your repayment periods and in some cases by lowering your current interest rate.

What if Debt Counselling isn't enough for me?

Should we believe that Debt Counselling is not the best option in your particular circumstances, we will assist you with the most appropriate process, whether it is sequestration, liquidation or perhaps selling your property.

What happens if my credit provider does not accept my payment plan?

If we feel that your offer towards your Credit Providers is reasonable, then we will endeavour to convince the court that the Debt Review must be made an order of a court, even if your Credit Providers do not agree. If your Credit Providers take action against you in these circumstances, then the monthly payments that should go towards those particular Credit Providers may in certain circumstances be used to defend such actions.

At the end of the day the Credit Providers just want their money, so should your repayment plan be reasonable, it is very unlikely that the Credit Providers will not accept it.

Will my creditors still call me?

As soon as you apply for Debt Review at SA Debt Solutions, we will within 5 days (usually less than 48 hours) notify all your Credit Providers that you are under Debt Review and from that point onward they must, by law, communicate with your Debt Counsellor and not with you directly. It does, unfortunately, happen from time to time that some Credit Providers take a chance by making contact with our clients directly, but when that happens, you can merely refer them to your Debt Counsellor who will deal with the matter further.

Will I loose my car and house?

Debt Review cannot make you lose your home or your vehicle. It can, however, save your home and vehicle, but this will obviously depend on your unique circumstances. Factors that will determine this will include the following:

  • Have you received a Section 129 letter from your Credit Provider, and if so, how long ago? If you receive a Section 129 letter from your Credit Provider, you will have 10 working days in which you can obtain the services of a Debt Counsellor, who will endeavour to save the asset.
  • Have you been served with a summons in respect of your mortgage bond or vehicle finance?
  • How many vehicles do you have and what are they used for? Quad bikes and Jet ski’s will for example be regarded as luxury vehicles and might have to be returned to the bank.
  • Are you giving your full cooperation in the program?

The bottom line remains that you will always be in a better position to keep your home and your vehicle when you are under Debt Review, rather than trying to fight off the banks yourself.

With liquidations and sequestrations, your home and vehicle are in danger. However we always do our best for customers to keep their assets, especially furniture.

How long will I remain under Debt Review?

It is different for everybody, as every individual’s situation is unique. In order to lower your monthly instalments, we have to extend your repayment periods. In some cases we manage to convince Credit Providers to also lower their interest rates, which means that your repayment period will not be stretched too much.

Your debt repayment plan will indicate exactly when your last day of payment will be.

How does Debt Review impact my Credit Record?

Whilst you are under Debt Review, a flag indicating that you are under Debt Review will be present behind your name at the Credit Bureaux. Once you have satisfied your debt obligations, we will instruct the Credit Bureaux to remove the flag and there will be no indication that you have ever been under Debt Review.

If you, however, do not apply for Debt Review, the situation is much worse. If you skip monthly instalments on any of your Credit Agreements, whether it is a Mortgage Bond or a mere clothing account, this will be listed as non-payments.

For purposes of obtaining credit in the future when you are back on your feet again, it would, therefore, be an obvious choice to rather opt for Debt Review than to try and juggle your Credit Providers by paying them less than your original instalment or not paying all of them timeously.

Can I be blacklisted under Debt Review?

No, whilst you are under Debt Review, your Credit Providers will not be in a position to “blacklist” you. If the “blacklisting” took place before you applied for Debt Review, it will, however, reflect on your credit record. This is a further reason why you should rather apply earlier than later for Debt Review.

Can I apply for Debt Review if I am unemployed?

In order to be placed under Debt Review, you have to have a monthly income that puts you in a position to make a reasonable offer to your Credit Providers. If you are therefore unemployed and you do not receive any other income, like rental income or pension, Debt Review is not the ideal solution for you. There are other solutions available that might be beneficial for you, so you can still contact us.

Will Debt Review impact me negatively when I apply for a job in the future?

No, it should not have a negative impact, because if a new employer does a credit check on you and picks up that you are under Debt Review at the time, it will in our opinion obtain you respect, as the employer will realize that you did the responsible thing when you started to experience financial problems.
The alternative would be much worse. If the employer picks up that you have defaults on your credit record and you did nothing about it, it would not send a good message at all.

[vc_heading title=”Sequestration & Liquidation Questions” subtitle=”FAQ’s” position=”center”]

What is the difference between Sequestration and Liquidation?

Sequestration is for an individual and Liquidation is for a Company.

When will I experience relief?

You will immediately experience the relief that we offer. All creditors can call us from now on and stop phoning you.

Do I have to engage in a consultation at the SA Debt Solutions Office?

Yes, we do prefer to see our client one on one. In case we need to follow Sequestration or Liquidation, our Attorneys need to present you in court under oath. Therefore, we prefer to meet you in person.

Will I loose my assets?

Yes, you will loose all your assets but also all your debt. You are allowed to buy back your furniture over a period of 6 or 10 months.

Will all my liabilities be gone?

Yes, insolvency destroys all your assets, your trustee will sell all your assets and we will divide all the income received amongst your creditors according to the stipulation of the insolvency act.

What about my current hire, purchase leases?

These agreements will all be cancelled. You will definitely loose your vehicle.

Will my creditors still call me?

As soon as you apply for Sequestration or Liquidation at SA Debt Solutions, we will within 5 days (usually less than 48 hours) notify all your Credit Providers. From that point onward they must, by law, communicate with your Debt Counsellor and not with you directly. It does, unfortunately, happen from time to time that some Credit Providers take a chance by making contact with our clients directly, but when that happens, you can merely refer them to your Debt Counsellor who will deal with the matter further.

How long will I remain Sequestrated?

After 4 years – rehabilitation happens by means of a court application and if successful, you regain your normal status.  It is sometimes possible to apply in a shorter period. You are automatically rehabilitated after 10 years.

Can I be a director of a company?

No, you may not without the courts consent be a director of a company.

Can I apply for loans other accounts during this time?

No, you are not allowed to incur any further debt. All new debt you will be liable for, but you will also be criminally liable.

Can I work at a bank?

Banks do not want to employ or keep the employment of unrehabilitated insolvents. If you are currently working at a bank, chances are good you will loose your employment.

How will this impact my employment or occupation?

It is advisable to speak to your employer and to enquire whether your insolvency will have any effect on your contract of employment.