Legal Aid and Assistance Regarding Debt Owed by Consumers
The Velile Tinto & Associates legal team provides legal aid and assistance regarding foreclosure, insolvency and debt collection processes. Our clients include the likes of banks, home bond companies and corporate clients.
With over 50% of South African consumers struggling to repay their debts, many debtors default on their home bond repayments. Unfortunately, such means financial losses for banks and with the credit laws in the country being rather strict about reckless lending, it is imperative to follow correct procedures when doing background checks and reviewing credit applications. Even with all of the above in place, it is not uncommon for debtors to get into situations where they are no longer able to afford their home loans or vehicle finance repayments. Leaving the situation to get out of control is not advisable.
As such, we provide professional legal aid and assistance to client companies in dealing with over-indebted individuals and business entities. Where necessary and if to the benefit of our client, we initiate sequestration or liquidation applications. If not beneficial to the client, we help with foreclosure procedures, including letter of demand for payment, applying to court for judgment against the debtor, and taking the necessary steps to repossess vehicles or foreclose on properties.
Foreclosure allows the creditor the right to repossess the property or vehicle of the debtor if the debtor’s financial difficulties are of such a nature that debt rehabilitation or debt assistance is not possible. In such an instance, the creditor applies for a summons to be delivered to the debtor to inform the debtor about the procedure that will follow to auction off or repossess the vehicle or home. The creditor sets a market related price in order to redeem the outstanding debt and according to the requirements of the law, to ensure a fair price is obtained for the property or the vehicle.
With foreclosure, the outstanding debt is usually covered with the selling price. If the selling price is not enough, then further debt collection is needed. Here also, our team will provide legal aid and assistance with the debt collection process.
Where the consumer enters the debt review process, we handle negotiations regarding the repayment and interest amounts. Where the debtor’s representative proposes unreasonable terms and amounts, we oppose such. With our legal aid and assistance available to your firm there is no reason why you should not be able to recover debts owed to your firm.
Contact us for legal advice and professional assistance regarding sequestrations, insolvencies, foreclosures, litigation and debt collection in South Africa.