Voluntary Surrender is a legal solution for managing debt that allows you to write off a large percentage of your unsecured debt. Debt that might otherwise take years to pay off. Our Insolvency Practitioners will send a legal notice to all your Credit Providers, notifying them of your decision to proceed with Voluntary Surrender. Upon receiving this notice, Credit Providers are prohibited from pursuing you or initiating any legal action to recover outstanding debts.
On average, approximately 75% of your debt may be forgiven, meaning that if you owe R100,000, you would only need to repay R25,000. This repayment can be structured over a negotiated period. Additionally, funds for settling this amount can come from retrenchment or pension payouts, or even loans from friends or family. In certain situations, a higher percentage of debt may be written off, particularly when assets have been repossessed and a shortfall remains after their sale.
Do I Qualify for Voluntary Surrender?
You may be eligible to apply for Voluntary Surrender if you fulfill certain criteria:
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your total debt exceeds R150,000.00.
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you are unable to meet your debt obligations as they come due.
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your debts have been referred to collection agencies or attorneys for legal action.
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you have outstanding shortfalls on assets, including vehicles and/or a home that has already been repossessed.
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you have attempted Debt Review but found the installment payments to be unmanageable or you have been removed from the process due to non-payment.
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you have judgments and emolument attachments on your income.
How do I pay the 25% off?
There are several options available for settling the fee in a Voluntary Surrender application.
1. CASH
2. ASSETS
Types of Debt that can be included in a Voluntary Surrender
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Shortfalls from assets that have been repossessed and auctioned.
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Financed Vehicles. Must be handed back to the bank.
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Paid off vehicles do not form part of the process and can be kept.
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Pay Day Loans
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Personal and Revolving Credit Loans
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Overdrafts
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Credit Cards
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Store Cards
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SARS Penalties
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Cell phone Contracts
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Medical Debt
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Other third-party Contracts.
The Voluntary Surrender process requires a Court Application, during which an assessment will be conducted to determine your repayment obligations. If you choose to move forward, our advocate will prepare the necessary legal documentation, and Credit Providers will be informed of the application. It is important to note that your presence in court is not required. Once the Voluntary Surrender Order is issued, Credit Providers will receive a copy of the Court Order, which legally prohibits them from pursuing any further payment arrangements from you.
Despite this, Credit Providers may still attempt to contact you regarding debt repayment. In such cases, you can forward their communications to us, and we will provide them with a copy of your Court Order. Alternatively, you may also send the Court Order directly to the Credit Providers yourself. This Court Order serves as your protection. After a period of 36 to 48 months, you will be eligible to apply for Credit Rehabilitation, which can restore your creditworthiness.
Voluntary Surrender offers a crucial advantage in that it allows individuals to effectively address their unsecured debt issues and begin to move forward. While there are certain consequences and limitations associated with entering Voluntary Surrender, it often represents the most viable solution for those seeking to resolve their financial difficulties.
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