Rip of for sure . Nobody but the debt counselor wins. My suggestion is much more practical.
Sell of every thing of value . House and vehicle all furniture. any thing you can turn in to cash. buy kruger rands . Get a deposit box on a assumed name. Nobody must be able to trace the transaction.
Then have your self sequestrated.
Then live with in your means with out credit.
Up yours to the creditors and Depth councilors.
Its scary what some people offer as advise.........forgetting that the Insolvancy act could have you jailed for such actions
Part of our squeeze to get paid sometimes is to remind the debtor that they can't be jailed for debt, but they can get jailed for fraud.
I trust we're not going to get so snarled up in red tape that people can't voice their thoughts, Quinn. I'm sure readers can see Totius's comment for what it is rather than "expert advice."
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If I am not mistaken you can go to court and appeal. Then hand in your argument with facts attached to them. Things like your income being halved thus you can no longer pay what is due every month. Then you state the amount that you can pay. Surely the court must take your argument into consideration? If not then yes the door is open for another bastard to step into the picture and rob the poor. I honestly feel that the government must take a more active role here and create an appeal system so that an individual can manage the process.
But I stick with my statement: forget the nice things in life and stick with what you need. But lest face it the cost of living is getting hell expensive. I don’t know if I will be able to survive. But I always look at the banks with utter hate! If I was more than human every banker would sit in a puddle of their own faeces screaming in utter desperation. Fact is they can be more lenient but they will rather kick a person in the back of the head demanding money.
The most important and valuable lesion one can take from this recession is never trust banks, businesses with 24 month payback facilities and whatever you do never trust your employer because they will get rid of you in an heartbeat. Lastly if we get through this recession start preparing for the next one. Forget the expensive car, new house and just learn to keep going on the minimum. I honestly belief that economic recessions will up there frequency to every 3 to 5 years.
The company is the most important part of the equation. We always take the employee position in consideration. through the years I have engaged with my employees to find alternatives to termination . (1) They would rather take the risk of loosing their job than take a cut of 10% to save 10 jobs.(2) They never believe that a company can have financial difficulties.
In the current recession their is no jobs out there . I offered voluntary severance but nobody come forward. Thus I have no option but to reduce the number of hours in line with workload and the most expensive working the least hours.
Save the company
Why must we act in good faith when the creditors and banks do not.
They all claim that you will get assistance from them should you have problems.
Not so ,They do not act in good faith. The last thing you must do is tel them you are in financial difficulty they will freeze all your credit they will even take funds out of your account without permission.
Make sure you have accounts in at least 3 of the major banks. Do not take the risk in putting your salary in the bank your home loan and credit cards are with if you are going to default they will grab the moneys out of your account with out permission.
Nobody is going to feed your family , You take the necessary measures to look after your family.
Then negotiate with the hyenas
The formation of the National Debt Mediation Association (NDMA) is an interesting development.
While the NCA allows this type of mediation as a solution to debt problems, the danger is that this organisation will mislead the uneducated comsumer about their rights.
One should not forget that the NDMA will act mainly in it's members' own interest, and not neseseraly in the best interest of the consumer. The same is most likely true of "Affiliated Debt Counsellors".
In fairness, it is also true that it is not in their own interest to have a consumer forever caught up in old debt, since they want to make money out of selling your new good and services, and cannot do that while you are under debt counselling.
With regard to the fee that a Debt Counsellor is allowed to charge: I thinks it's fair that the debt counsellor is paid for his/her services, but I also think that people who go that route, do not have that extra R3,000 to pay.
The National Credit Regulator (or the Minister) should perhaps again look at this initial fee.
The 5% and later (after 24 months) 3% commission should be seen compared to the 10% one would pay an Administrator or laywer on collections. (if I don't have the figures wrong) Also remember that fee/commission is capped at R300 a month.
I think most of us have to take the blame for our own debts. There is a percentage who get into trouble due to loosing a job or some unforseen sircumstances, but in general I don't think it would be wrong to say the we get into trouble by living above our means... living on virtual money.
btw, I think it is good that QUINN reminds us that some actions we consider to get out of debt could land one in jail. (like hiding assets when sequestrating or in a company liquidation)
When one is in a tight spot, the temptation is big to try things that can get one much deeper in trouble.
Creative legal sollutions like so-called "friendly liquidations" are also now frowned upon by our courts.
disclaimer: i have no legal or financial training
Totius - I am confused
Your first post here - you tell us about save the company and tough for the staff.
In your second post its tough for the companies and you as a family (same as your staff) need to be saved.
It is common knowledge that the bank will lend you an umbrella while its sunny and take it away when its raining, yet we complain when they actually do it t us personally. Why have these expectations when you know they will not help you and are only there to ensure their assets are secure?
As for creditors - they have provided the services or goods up front based on some payment terms. How can it be that they have reneged on anything, just because they would like to receive what is due and keep themselves from being roped into your situation?
Marq : the two issues are totally differant
(1) The company( generating wealth, its clients base other companies) must look after it self . If it become necessary to reduce staff it must do so.
(2) The individual needs to take the necessary decisions to make sure he can look after him self and his family.
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