It is easy to lose the meaning and value of Heritage Day in South Africa. Many see it as a day to stay at home and have a good ol’ braai with family and friends. Let me take you back to the reason this day is honoured in this country.
28 November 2012
If you are under debt review it is absolutely imperative that you make every single rehab payment. Your credit providers will act very quickly once you have missed the first payment. Not only will you have to deal with their incessant phone calls again, but by not paying you are giving them the right to bring legal action against you.
Luke Hirst MD of DebtBusters says, “Missing a payment is just not worth it. Your creditors have already made allowances by agreeing to new payment plans, and by defaulting on those you are opening yourself up to legal action and stand the risk of losing your house and/or car. You are also taking a major backwards step with regards to your financial recovery.”
According to Hirst the industry is seeing an increase in non-payments of late. This is highly concerning as lives are being ripped up at the seams. Your credit providers will not hesitate to repossess your car and/or house in order to pay off your debt.
Hirst continues to say, “South Africans under debt review need to realise that they have been thrown a lifeline. By paying a negotiated, affordable amount every month you avoid repossession, legal action and give yourself and your family the chance at a sound financial future.”
The following is the process that takes place after you have missed a payment:
• Your credit providers will start phoning and contacting you repeatedly.
• If you still do not pay, your creditors will terminate your debt review agreement.
• As you haven’t paid, we at DebtBusters cannot attend to the termination.
The legal process then begins and you will be issued with the following:
1. Section 129 letter
3. Default Judgment
4. Warrant of Execution – moveable assets (such as your vehicle). Your car will be repossessed and sold at an auction in order to cover at least a portion of your debt.
If you do not have any movable assets that can be attached the following can happen:
4.1 Section 65A enquiry at Court – where you have to attend court with all your income and expenses. The magistrate then makes a ruling to how much must be paid monthly. If you do not adhere to that order the credit provider can automatically have a garnishee order issued
4.2 Garnishee order (before you receive your salary, a portion is taken off and paid towards your debt for a specified period of time).
Thereafter if you have immovable property (your house) they can issue a warrant of execution on immovable property and sell your house on auction to cover the specific debt