Posted by: | 2013/05/24 12:40
I have been under debt review since around 2010 and got a court order granted in 2011. I have been paying my debt ever since without default. This week the company I work for notified all employees that they are starting a retrenchment process.
This means my last day would be end of June.
So my question is what will happen if I notify all my creditors about my situation? Will they be able to give me a payment holiday for a month or two untill I have found a new job? Or will they start to reposess my house and car immediately?
Posted by: Neil Roets | 2013/05/28 08:36
This is a very sad situation that you are finding yourself in.
The first problem you will face is the fact that there is a court order in place which instructs you to pay the debt review premium every month without fail.
In the current economic climate it is, however, not uncommon for clients to become unemployed and most credit providers are sympathetic to this. There is unfortunately no provision in the National Credit Act that allows a client to miss a payment while under debt review. Most credit providers will consider granting a payment holiday in exceptional circumstances, but it remains at their discretion.
We suggest that your debt counsellor contact them as soon as possible, request a payment holiday and provide them with the proof of your retrenchment. The credit providers must then confirm if they will accept the arrangement or not.
You can also contact the credit providers directly and explain your situation to them. Some creditors also have insurance that covers retrenchment and not all credit providers cancel the insurance when the account is placed under debt review.
You can also enquire from the credit providers if this is the case and put a claim against the insurance.
Good luck with your search for employment.
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