Avoid Debt Management Mistakes By Making Use of Our Insolvency Lawyer Services

Rather than trying to negotiate with creditors for lower instalments or committing an act of insolvency without knowing it, make use of our insolvency lawyer services. It is certainly better to be in the control seat by applying for voluntary sequestration rather than being forced to sequestrate because you make a mistake in dealing with creditors. We can advise you regarding debt management and assist you in dealing with creditors as part of our lawyer services. In addition, we can help you through the voluntary sequestration process and assist with rehabilitation afterwards.

 

What is an Act of Insolvency?

It is any action taken by a debtor that allows a creditor the right to apply for the compulsory sequestration of the debtor. As explained earlier, as part of our lawyer services, we can help you to come to an agreement on the payment of debt with creditors. However, it is important to take the correct steps and, as such, if you find that you are no longer able to pay your debt and your liabilities far exceed your assets, get in touch to make use of our insolvency lawyer services to help you in this regard.

Below are instances that constitute acts of insolvency. If you have committed any of these, make use of our insolvency lawyer services to rectify the situation or to assist in taking the necessary steps in applying for voluntary sequestration.

 

Letter Stating You Are Not Able to Pay Your Debt

You may think that it is the best thing to do, but avoid writing a letter that indicates you are not able to pay your debt. This also pertains to an SMS or email to the creditors. Refrain from any such written communication.

 

Letter to A Creditor to Negotiate an Offer to Settle the Debt at A Lower Amount

Never attempt to do so without legal help. Rather make use of our insolvency lawyer services in this regard. The creditor can take your settlement offer as an act of insolvency, and can apply for your compulsory sequestration, based on the fact that you are unable to pay the full amount owed.

 

Absconding from Debt

If you leave your house or country without notifying the creditors of your new address, it can be taken as an attempt to flee from your debt responsibility and thus an admittance that you cannot pay your debt. Though it is rather difficult for a creditor to prove that you intended not to pay the debt, the creditor can still apply to the High Court for your sequestration.

 

Judgment Issued, But You Do Not Have the Assets or Finances to Pay the Debt

Where a creditor obtains a judgment against you and a Warrant for Execution is issued, but you do not have assets to be attached, the creditor can apply to the High Court for a sequestration order against you.

 

Hiding or Selling Part or All of Your Assets

It may not be your intention to hide or sell your assets to prevent attachment, but if you are already in financial trouble, creditors can see it as an act of insolvency. Rather make use of our lawyer services to minimise the risk of compulsory sequestration.

 

Paying One Creditor, But Not the Other

If you juggle between accounts and struggle to pay all the creditors, do not just pay one or pay one in full and not the others. It is an act of insolvency, as one creditor is benefitted to the disadvantage of the others.

 

Advertising the Sale of Business, But Fail to Pay Debt After the Ad Placement

You must place a notice of sale of business in a local newspaper to warn creditors of the sale of your business. If you thereafter fail to pay the debt owed, then the creditors can see it as an act of insolvency.

 

Fail to Proceed with Voluntary Sequestration After Notice Publication

If you decide not to go through with the voluntary sequestration after having published the notice for such, you commit an act of insolvency.

Avoid the above and many other mistakes in handling your debt situation by making use of our insolvency lawyer services.

 


Disclaimer: This article is for informational purposes only and does not constitute legal advice. Call on 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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