20 Jul Debt Rehabilitation Processes
There are various options available to consumers when they seek out Debt Rehabilitation. Rehabilitation refers to the act of restoring something that has been damaged to its former condition. In this case, Debt Rehabilitation is the availability of financial solutions to South African consumers who are over indebted. There are a few Debt Management solutions to choose from, while our professional team at Credit Rehab are ready to assist you every step of the way.
Debt Rehabilitation solutions offered by Credit Rehab differ to suit the consumer on their journey to financial freedom. For certain clients, Debt Review or Voluntary Mediation prove to be the most sensible approach, as an individual is taking the first steps to gaining control of their finances. In other instances sequestration, which refers to the voluntary surrender of your estate, can prove to be a beneficial form of Debt Rehabilitation.
Although sequestration will render you insolvent for a period of time, it will also help you to overcome current debts that are too far out of your reach. While sequestrated, you will no longer receive harassing phone calls from creditors and, if done successfully, your credit score will be cleared of judgements afterwards. When choosing voluntary sequestration as a form of Debt Rehabilitation, one of our Credit Rehab representatives will take the time to determine whether or not you qualify for sequestration. In order to qualify for sequestration, you need to prove that your liabilities exceed your assets and that your income is too little to pay off your creditors.
If you qualify for sequestration, our team will help you to submit a formal application to the Master of the High Court to be declared bankrupt, as well as draft your affidavit. If no objections take place, within one month the Court will grant a final order for your sequestration, as well as appoint a curator to monitor the sale of assets and the distribution of benefits to your creditors. The good news is that you will eventually be able to clear your name and start to enjoy a debt-free and financially independent life.
During sequestration, we will notify your credit providers that you are surrendering your estate and you will be insolvent for at least 4 years – you will need to wait this long to have your estate rehabilitated again, however the advantages of sequestration outweigh the disadvantages in most cases. Once the 4 year time period has passed, our Credit Rehab team will be able to assist you in obtaining a Clearance Certificate.
Debt Mediation offers you as the consumer legal representation in cases where your creditor/creditors are attempting to recover the debt that you owe them – our team of financial experts will meet with your various creditors in order to negotiate lower monthly instalments on your behalf, which are more suited to your budget. Debt Review is very similar, however comes with the added benefit of protecting you as the consumer from legal action, which could include asset repossession.
Check in with Credit Rehab today for professional and reliable Debt Rehabilitation services. It is never too soon to start your journey to financial freedom!