Debt recovery and insolvency services.

Debt review is a legal process under the National Credit Act where a debt counsellor helps consumers manage unaffordable debt. Benefits include protection from creditors and debt collectors, renegotiated payment terms with lower amounts, reduced interest rates, a stop to legal action by creditors, and a single consolidated repayment plan.

Sequestration is a court process where your estate is handed over to a trustee to sell assets and pay creditors. It may be worth considering if debt is unmanageable, debt review isn’t possible, you have sufficient assets to pay some creditors, or you want a fresh start. Sequestration has serious consequences, including a damaged credit record for up to 6 years.

Yes, creditors can obtain a court judgment and then attach your wages through a garnishee order, deducting a percentage of your salary directly to pay the debt. However, certain amounts are protected, including basic living expenses and maintenance obligations. A legal professional can challenge excessive garnishment or negotiate reduced amounts.

The National Credit Act protects you from harassment and threats, contact during prohibited hours, contact at work without permission, public embarrassment, unlawful collection practices, and incorrect debt information. Debt collectors cannot arrest, detain, or physically harm you, and you may be able to claim damages for illegal collection practices.

Debt collection timelines vary: small claims (under R15,000) may take 3–6 months, district court claims (R15,000–R100,000) around 6–12 months, and high court claims (over R100,000) around 12–24 months. Many cases settle before trial, reducing the timeline.

Yes, debt settlement is possible. Creditors often accept less than owed if you’re in financial hardship, they’re uncertain about collecting the full amount, or they want to avoid litigation costs. Settlement amounts depend on your financial position and the creditor’s willingness.

Debt review generally lets you keep your assets and employment, has a lower credit record impact (3–6 years), restructures payments you can afford, and involves negotiation with creditors. Sequestration is more of a last resort: assets are sold by a trustee, credit is affected for 6+ years, and it’s a more formal court process, generally better suited to those with few assets.

No, debtors’ prisons don’t exist in South Africa, and you cannot be arrested solely for owing money. However, you can be arrested for failing to appear in court, contempt of court (ignoring court orders), or non-payment of maintenance. A legal professional can help ensure you comply with court orders and protect your rights.