Why Seek Debt Solution Advice Before You Approach Creditors with an Offer?

If you are struggling to pay your store accounts, home loan, personal loans, vehicle finance, and credit cards, seek debt solution advice immediately. Every day you wait, you increase the risk of creditors taking things further, in order to take a judgement against you. If the bank forecloses on your property and sells it on auction, you will still have to pay the shortfall. This means that you will be left without a home and with substantial debt on the property. In addition, you risk losing your vehicles, tools of trade, and more.

What to Do

Rather take proactive steps, such as seeking debt solution advice before you admit in writing that you are unable to pay the debts. Did you know that if you write a letter to a creditor asking for an extension on the debt repayment period or to lower monthly instalments, because you are unable to pay the debt, that it is an act of insolvency? The creditor can, based on the fact that you admitted to struggling to pay the debt, bring a compulsory sequestration order against you.

You can avoid this by seeking debt solution advice from experienced insolvency attorneys. Rather have the attorneys deal with the matter. They can help you determine if you are indeed insolvent, and whether you qualify for voluntary sequestration. If you do not, the attorneys will be able to give you advice regarding a suitable alternative, such as a debt consolidation loan, creditor settlement agreement, administration, or debt review, depending on your particular financial situation.

What Does Voluntary Sequestration Entail?

Voluntary sequestration is a legal process where you apply to court to be declared bankrupt. Once the attorneys have published the notice of your intention to voluntary sequestrate, the creditors cannot take any further legal action against you. You will immediately stop any payments to the creditors, and will refer them to the insolvency attorneys if they continue to harass you.

The court will award the provisional order for sequestration, and set a date for the final hearing. The creditors will have the opportunity to oppose the application. If no objections are received, the court will award the final sequestration order. Your estate will be managed by a court-appointed trustee, and the proceeds from the sale of assets will be used to pay the minimum benefit to the creditors as required by law. Once the creditors have received their benefits, you will be able to start fresh. After the appropriate period has passed, you will be able to apply for rehabilitation from the insolvent status.

Where to Seek Help

Give us a call for debt solution advice before it is too late. Our attorneys will explain the various solutions and help you make an informed decision regarding the best solution for your particular debt situation.

 


Disclaimer: This article is for informational purposes only and does not constitute legal advice. Call our attorneys for legal advice, rather than relying on the information herein to make any decisions. The information is relevant to the date of publishing.

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