The Voluntary Surrender process allows for the possibility of writing off certain debts and must be initiated through a court application, which requires the expertise of an attorney. Once the application is prepared, our attorneys will file it with the High Court in your province. This step officially begins the Voluntary Surrender process and puts your creditors on notice.
What do you want to know?
With your permission, we will obtain a copy of your credit report to verify any outstanding debts. This Voluntary Surrender assessment is completely free of charge and serves as a crucial step in helping you make an informed decision about your options. One of the most significant benefits of the Voluntary Surrender assessment is determining the percentage of debt that will be written off. Some debts can be eliminated up to 100%. We believe in transparency, so we will provide you with a clear breakdown of any costs associated with the debt solution as well as the process.
When it comes to managing debt, many clients find relief through our debt solution process. On average, clients can expect to have 60-75% of their debt written off, significantly easing their financial burden. Here’s a closer look at how this works and what it means for you. For every R100,000 owed, clients typically see R75,000 written off. This means that a substantial portion of your debt can be eliminated. The remaining R25,000 can be settled in one of two ways i.e. in one lump sum or you can opt to pay off the remaining amount over a period of 18-24 months.
Upon your decision to move forward, the Voluntary Surrender Attorney will prepare a Statement of Affairs and an affidavit that outlines your financial circumstances and details your debts. This document must be signed in the presence of a Commissioner of Oaths. After the necessary documentation is duly commissioned, the Voluntary Surrender Attorney will file a notice of motion, which secures a date and time for the Voluntary Surrender hearing on the court calendar. Typically, obtaining a court date may take between one to three months, depending on the time of year and other influencing factors.
We inform the Creditor Providers of your intention to seek Voluntary Surrender least one month prior to the court hearing. The Attorneys will prepare a notice that is published in the Government Gazette and also dispatched via registered mail. Following the publication of this notice, all payments to Credit Providers must cease to ensure that no single provider receives more than the others. Consequently, all legal actions against the client will be halted, and interest on any outstanding debts will be suspended.
A Voluntary Surrender Attorney is designated to represent the client's case in court, allowing the client to forgo attendance on the hearing day. Following the approval of the Voluntary Surrender, the client can expect to receive the stamped Court Order approximately two weeks later. In rare cases, the court date may be delayed if the judge requires additional information, necessitating the scheduling of a new date to provide the requested details.
The Master of the Court will designate Trustees to complete the Voluntary Surrender process. These Trustees will convene with Credit Providers to review and finalize their claims, determining the amounts they will receive. Upon the conclusion of these discussions, the Voluntary Surrender will be deemed complete, and a Liquidation and Distribution account will be submitted to the Master of the Court for review. This account details the payments and distributions made to the various parties involved and requires the Master’s approval.
After the initial Trustee meeting and the submission of the first account to the Master of the Court, the client is required to apply for a new tax number. Failing to do so will result in all tax refund rebates being directed to the previous tax number, benefiting the Credit Providers associated with that estate. Conversely, obtaining a new tax number ensures that all rebates are deposited into the client’s designated bank account.
Credit Rehabilitation must be initiated by the client through an attorney to remove the Voluntary Surrender notice from their Credit Report and improve their Credit Score. This process can be undertaken 36 to 48 months after the court issues the Voluntary Surrender Order or 12 months following the confirmation of the Trustees’ first account. If the Consumer opts not to pursue Credit Rehabilitation within the 36 to 48 month time frame, they will automatically be rehabilitated after 10 years.