Can you be stopped at the airport for debt in South Africa?
The question is that if you do NOT liquidate your company or sequestrate yourself, what happens to the debt? Will somebody wait for you at the airport and stop you from leaving? Or will your visas not be granted? The good news is no, they will not.
Moving abroad does not wipe your debts or relieve you of the obligation to settle the debts you left behind. Furthermore, moving overseas does not mean that your creditors will stop hounding you for payment. As long as the debt you owe remains, you will be liable in South Africa.
The debt is regarded as a separate account once it is in the possession of a collection agency. If you don't pay, the collection agency may file a lawsuit. Depending on how the case turns out, the court may seize your property or garnish your income to recover the money you owe.
A debt collector is not allowed to:
Serve any false legal documents. Present themselves as police officers, sheriffs or officers of the court. Spread, or threaten to spread, any false information about your creditworthiness. Charge more than the fees set down by the Council.
You may go and report this matter to the police but they will probably tell you it is a civil matter and they can't handle it. Unless the matter also involves violence or an immediate threat there is really not much that the police can do for you if someone owes you money on a loan.
For personal loans, credit cards, retail accounts, and vehicle loans, the timeframe is three years. Therefore, debt older than 5 years in South Africa is, most of the time, no longer collectable.
A prescribed debt is, to put it simply, an obligation that has essentially "expired." Usually, debt is said to have been prescribed when after three years have passed and the creditor or debt collector has not filed any legal action or requested payment of the outstanding balance.
South Africa has different laws which specify prescription periods, for example, the Prescription Act says that contractual and delictual debts extinguish after three years from the date when it became payable (due). Prescription periods may, in certain circ*mstances, be delayed or interrupted.
Debt collectors will initiate contact with debtors to inform them about their outstanding debts. They may do this through letters, phone calls, or even personal visits. It's important to note that debt collectors should not harass or intimidate debtors during this stage.
- Know why you want to do this. ...
- Pay more than the minimum amount due. ...
- Use an accelerated payment strategy. ...
- Grow your income. ...
- Adjust your lifestyle. ...
- Sell what you don't need. ...
- Consolidate or switch for a better interest rate.
Does unpaid debt get written off in South Africa?
For all intents and purposes, the debt must have been completely forgotten about by both the debtor and the creditor. There must have been no contact regarding the debt from either side. This is the only way to confirm that the debt is old and thus is allowed to be written off.
Not responding to a properly served lawsuit – even if you're unsure whether you owe the debt – can result in the court issuing a judgment against you, which could limit your ability to dispute the debt, even if it's already been paid or you don't owe it.
The worst thing they can do
If you fail to pay it off, the collection agency could file a suit. If you were to fail to show up for your court date, the debt collector could get a summary judgment. If you make an appearance, the collector might still get a judgment.
If someone owes you money and they refuse to pay you at the agreed time, you may take the matter to the Small Claims Court. If someone has bought goods such as furniture from you and they have failed to pay for it, you can take the matter to the Small Claims Court.
Loan sharks cannot take you to court for money. It was illegal for them to lend it to you.
As a baseline, expect to budget around R500 to R1,500 for initiating smaller claims, and up to R5,000 or more for larger claims. Expert Witnesses: Should your case require the testimony of expert witnesses, their fees can significantly add to the total Cost to sue Someone in South Africa.
The Amendment Act will provide additional protection to low-income consumers from over-indebtedness by either re-arranging, suspending or extinguishing (partially or wholly) their unsecured credit debts during a period of four years from the commencement date, which can be extended.
As a rule of thumb, a debt-to-income ratio of 36% is considered high. While a ratio of 43% is considered too much debt. Here are a few tell-tale signs that your debts have risen beyond your control: At least half of your income is spent on consumer debt (credit cards, medical bills, personal loans).
Your creditors do not have to accept your offer of payment or freeze interest. If they continue to refuse what you are asking for, carry on making the payments you have offered anyway.
A judgment is public information and remains on your credit report for 5 years or until the judgment is rescinded by a court or paid in full. Once paid Consumers no longer have to get the judgment rescinded in court. What is a rescinded judgment?
How to clear prescribed debt in South Africa?
If you want to have prescribed debt removed from your record, you will need to contact the credit provider directly. Request to have the debt removed from your credit profile and then contact credit bureaus such as TransUnion and Experian. The credit bureaus will open an investigation.
Most negative items should automatically fall off your credit reports seven years from the date of your first missed payment, at which point your credit score may start rising. But if you are otherwise using credit responsibly, your score may rebound to its starting point within three months to six years.
For most debts, the time limit is 6 years since you last wrote to them or made a payment. The time limit is longer for mortgage debts. If your home is repossessed and you still owe money on your mortgage, the time limit is 6 years for the interest on the mortgage and 12 years on the main amount.
Your missed payment will be reflected on credit bureaus and your credit score will likely decrease. If you have an Access Bond facility on your Home Loan, revolving personal loan or credit card, these facilities may be cancelled.
More and more South Africans are feeling the pressures of credit, with escalating fiscal pressure making it difficult for many to keep on top of payments. This is seen by debt for South Africans currently sitting in R2. 31 trillion, with R142.
