Voluntary Distribution

By: Libertine Consultants  03-25-2010
Keywords: debt counselling cape town

This is similar to debt review but it is an informal process.  It is more suitable for persons that have both personal and business debt or where legal proceedings have already been instituted against the consumer.  The process briefly entails the following:

  • The financial situation of the consumer is assessed and an available distribution amount is arrived at by deducted the consumers reasonable monthly expenses from his/her nett income
  • A payment schedule is drawn up and forwarded to the various creditors.  In this instance, some preference would usually be given to those creditors who have already proceeded with Summons and/or a Writ of execution
  • The offers are then sent to the creditors and negotiations begin.  There is no formal application to court and the creditors do have the right also to accept or reject the payment offers, or to make counter-offers
  • The consumer pays one amount per month which is then distributed to all creditors

Keywords: debt counselling cape town