Van Deventer & Van Deventer Incorporated Attorneys > Services > Civil Litigation & Debt Collection > Debt Collection

 

Need Legal Advice?

No Matter What Your Bind We Can Help You


 


 :

Debt Collection

Debt Collection in South Africa

Debt collection is an intricate process that is governed by the National Credit Act of South Africa to ensure ethical and legal guidelines are adhered to at all times.

The need for debt collection arises when a debtor is unable or refuses to meet his or her payment obligations.

There are various methods of collecting outstanding debts, but what is more important that the correct step-by-step process is followed in order for the collection to remain legal and in accordance with the Act.

Debt Collection Process

There are two initial phases to the debt collection process which are:

  • Standard collections phase – basic measures are taken to recover the outstanding debt. This is generally by demanding payment from the debtor
  • Legal collections phase – this phase is entered into when the standard collections phase was unsuccessful

The legal collections phase can only be initiated once the debtor has failed to pay the debt after being approached by a legal debt collector. This phase can be broken down into the following steps:

  • Delivering the summons – this must be issues at the court within the same jurisdiction as the debtor’s residential address
  • Time period for response – once the debtor has received the summons, he or she has 10 business days to either pay the debt or file and serve a notice of intention to defend the legal action
  • Default judgement – a default judgement is issued if the debtor fails to defend the summons within the stipulated time period
  • Warrant of execution – once the default judgment has been granted, the creditor may deliver a warrant of execution against the debtor’s property
  • Attaching moveable property – the sheriff within the same jurisdiction will visit the defendant to attach all moveable property to the value of the outstanding debt
  • When there is no moveable or immovable property to attach – in this case, the creditor may proceed with a financial enquiry in court where the debtor must appear and a court order will be issued
  • Emolument attachment order – if the debtor fails to honour the court order, an emolument attachment order allows for the monthly instalment due to the creditor is deducted from the debtor’s salary by his or her employer

Van Deventer & Van Deventer Incorporated – Debt Collection Attorneys South Africa

Our attorneys provide legal assistance with the debt collection process in South Africa, ensuring that all the guidelines as stipulated in the Act are adhered to.

We use efficient, ethical and effective legal methods to assist you with debt collection in South Africa. Contact us for more information.

[Title]Understanding Defamation and Privacy Law in South Africa

The South African legal system defines defamation as the act of publishing any statement about another individual that injures the reputation of that person in the eyes of the community. This definition underscores the gravity of defamation, highlighting it as not merely a personal affront but an action with potential social ramifications.

Read More ...
Posted by Cor van Deventer on Thursday, March 28, 2024 Views: 166


[Title]Bail Procedure In GBV Cases in South Africa

One of the challenges of GBV is that the perpetrator being released on bail and because he/she is frustrated that he/she has been exposed, metes out more attacks on the victim in retaliation. This is what the Criminal and Related Matters Amendment Act seeks to curb and minimise.

Read More ...
Posted by Cor van Deventer on Thursday, December 21, 2023 Views: 1083


[Title]The Law’s Attempt to Have an Upper Hand in GBV Cases

Despite having laws in place to discourage GBV and bring it under control, it is thought that the circumstances around it often make it difficult for the law to have an upper hand. Unrelenting, the legislature has made amendments to our law to curb GBV cases regardless.

Read More ...
Posted by Cor van Deventer on Monday, December 18, 2023 Views: 1063