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Thread: Dire Straits

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    Dire Straits

    Hi

    Looking for some advice with the problem which I'm about to relate, please be patient as it may be a long article.
    For many years now, a person who is very close to me, has been on the rocky road of addiction. This is an extremely traumatic situation for the people around them and they have no feelings whatsoever as long as they get their fix, whether it be drugs or alcohol. During this time they have had the most support anyone can offer, including financial, emotional, & rehabilitation. Time and time again the urge was too strong and reverted back to the old ways and to watch someone you love fall again is so emotionally disastrous and traumatic it hurts beyond belief.
    The last time it happened they ended up in hospital where the 3 days was just enough to bring them to their senses long enough to realize how bad things were. We had no choice but to offer the last chance ultimatum in the hopes they would try before finally losing everything and everyone around them, a decision which broke all our hearts but it was necessary.
    I don't know where they got the guts from but it worked and for the last 7 years they have been free from addiction (thank you God).
    The reason I opened this thread is for the following, now you have the facts which has led to it.

    During the hard times it was impossible for them to work due to their condition, so the bank was the place to obtain funds (unbeknown to us) which they were willing to lend, 3 banks to be precise and we have now been informed that the payments being made to the banks are not covering the debt and in fact the debt is increasing at a rapid rate due to the interest and the salaries they get is only sufficient to pay their way on a daily basis, they have no assets to speak of, the house is rented the car is an old one which they need to get to work or they will have no income at all.

    I have now been informed that they have now but told that they may have their salaries Garnished.

    My fear is that they will see no way out and return to their old ways and to a sad end for all of us.

    If anyone can offer any constructive advice and/or solution PLEASE feel free.

    Kind Regards

    Rozzer

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    Site Caretaker Dave A's Avatar
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    If the debt is too much as it is -

    One option is to enter into debt counselling. However, if they are genuinely doing the best they can already, I'm not thrilled at the prospects of this improving their situation.

    Another option might be to apply for voluntary sequestration (which is not without it's challenges too).

    What sort of interest rates are they getting hit with on their debt?
    The trouble with opportunity is it normally comes dressed up as work.

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    Diamond Member HR Solutions's Avatar
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    they have no assets to speak of
    Unfortunately you have to have a certain percentage of assets to sequestrate.
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    Gold Member Houses4Rent's Avatar
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    Sounds like reckless lending. If so the bank can be held liable I think.
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    Platinum Member sterne.law@gmail.com's Avatar
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    To sequestrate yourself yes.
    He friendly sequestration was the answer to this.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    Platinum Member sterne.law@gmail.com's Avatar
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    Has the debt not prescribed?
    7 years clean and loans in that time.
    But payments made?
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    Platinum Member sterne.law@gmail.com's Avatar
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    Perhaps visting ProBono.Org is worth while.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    Hi to you all

    Thanks for taking the time to offer some hope.
    @Dave... I do not know what the interest rate is but I fear it is high as even the most they pay
    never covers the amount required and consequently is rising (To Be honest I am scared to death to ask)
    though I know I must at some stage

    @sterne.law.... Not sure what to sequestrate oneself means & again what is meant by ' has the debt not prescribed'

    I will visit ProBono .org and see .

    I'm at my wits end!!!!!!!!

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    Site Caretaker Dave A's Avatar
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    Hi Rozzer,

    Ultimately the thing is to face the situation head on and understand it needs to change. And there are only so many ways to do that.

    My interest in "interest" is that this is a critical component in a debt burden that one may be able to change to make the debt affordable. So take a look at options on that front. Sometimes the threat of sequestration may result in a creditor revisiting their interest rate on the debt.

    At the very least, prioritise eliminating the higher interest debt first.

    The only other areas that come to mind not covered so far are overheads and income, but I'll trust for now significant thought has gone into these areas already.
    The trouble with opportunity is it normally comes dressed up as work.

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    Platinum Member sterne.law@gmail.com's Avatar
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    Sequestrate is the personal version of liquidation, a last resort.
    Prescription is a legal defence.
    If a debt is 3 years or older it cannot b3 collected via thsi defence, in other words time is up.
    But, and its a big but, if payments or acknowledgmenet of the debt have taken place that starts the clock ticking again.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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