Money can’t buy
love, but it improves your bargaining position.
Christopher Marlowe |
A well drafted acknowledgement of debt is
useful to confirm the commitment of the debtor to pay. If you have not yet done so, have
your acknowledgement of debt reviewed to make sure it complies with the latest laws.
|
|
Debt collecting
|
The face
of debt collecting has changed over the last few years.
But basics stay the same. A principle
we have learned over fourteen years of debt collecting is that the creditor who makes the
most noise, is more likely to be in the mind of the debtor when the debtor decides who to
pay.
Stay
in the mind of your debtors by maintaining contact. Negotiating and insist on payment by a
certain date. Confirm the agreed date in
writing. Don’t bark without a bite. If
the debtor does not pay as promised, follow up with a letter of demand (and comply with
the National Credit Act.) Then, if there’s still not proper payment, hand the matter
over for action. |
The National Credit Act hurdle
In
terms of section 129 and 130 of the Act, no legal steps may be taken against a
debtor in a credit agreement unless certain proposals have been made to the debtor.
The
proposals are that the debtor refers the matter to a debt counsellor,
alternative
dispute resolution agent, consumer court or ombud with jurisdiction, with the intent that
the parties resolve any dispute under the agreement or develop and agree on a plan to
bring the payments under the agreement up to date.
Sequestration and Liquidation as a
debt collecting tool.
In
many instances this may be killing a flee with a sledgehammer, but for those debt
collecting nuts that are hard to crack, a hammer is more likely to do the job.
We
have built up a reputation over the years as experts in the Insolvency field and among
other things, regularly provide advice and present lectures to colleagues on the practical
aspects of sequestration and liquidation. We
also annually update the Legal Education and Development Insolvency notes of the Law
Society of South Africa.
We
gladly answer any of your questions in this regard.
Please
e-mail us if you need some information on the process or any other aspect.
Regards
Barnard
Labuschagne Inc Registration No. 1999/015298/21 t/a  |
|
Disclaimer
Added Legal Value is provided for general
information and networking purposes. Its
publishers accept no liability for damages, errors or omissions. For professional advice or to properly protect your
rights, please consult a qualified legal practitioner.
Copyright
This letter may be forwarded in unaltered form to
willing recipients. It, its name, concept or
content may not otherwise be used, reproduced, redistributed, copied or imitated.
|
