The country’s economy is in turmoil and many people have lost their jobs, lost their businesses or are living on reduced income. When we have no income, or less income, its very difficult to manage debt and accounts. Bank loans, clothing store accounts, car payments, bonds or rent become debt burdens that can overwhelm us.
Most banks and stores are aware that their customers are struggling and they have put debt relief options in place. But it is up to you to be proactive and to talk to your bank, landlord or store and make arrangements you are able to stick to. It is very important that you are completely honest with your creditor and that you make a payment arrangement that you are sure you can honour.
Here are some do’s and don’ts:
Remember when you signed a loan account, or a store credit account, you gave an address where you would receive any legal notices. If you have moved since then you must update your creditors.
This is because they are entitled to send letters of demand and even a summons to that address. And if you are not living there you will not receive it. This is often how people end up with judgements against them. Don’t ignore letters of demand.
If you receive a letter of demand, call or visit the bank or store and discuss your situation Try to make an arrangement to pay if you can. If you cant make an arrangement negotiate that you will come back in a month’s time to update them on your situation. This is a process, in law, where you are assisted by a Debt Counsellor to negotiate payment arrangements with all your creditors. This will prevent them from repossessing your assets or taking judgement against you. In this way you slowly pay off all your creditors based on what you can afford.
While you are under Debt Review you may not incur any additional debt. Whatever you do, do not avoid dealing with debt you cant manage. And, whatever you do, try to avoid being blacklisted for default. If the Sheriff of the Court delivers a summons DO NOT IGNORE IT.
The summons is the start of court proceedings against you. If you ignore it the creditor can take what is called “default judgement” against you. Its called “default” because you did nothing about it. Once they have judgement against you your name is blacklisted and its very difficult to clear it. If you get a summons immediately contact the law firm that sent it (their contact details will be on the summons) and discuss a payment arrangement. If they get a default judgement against you they can send the Sheriff back to your house to attach and remove your furniture, TV, car to sell to cover the debt.
If you are overwhelmed with debt obligations you should consider Debt Review.
This is a process, in law, where you are assisted by a Debt Counsellor to negotiate payment arrangements with all your creditors. This will prevent them from repossessing your assets or taking judgement against you. In this way you slowly pay off all your creditors based on what you can afford.
While you are under Debt Review you may not incur any additional debt.
Whatever you do, do not avoid dealing with debt you cant manage. And, whatever you do, try to avoid being blacklisted for default.
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