Tracing of Debtors and Debt Collecting
Millions of South Africans are over-indebted, resulting in the need for efficient debt collection services.
- Taking legal action against a debtor is the second phase of action in our recovery process.
- Even though every effort is created to encourage payment, some debtors only react on court proceedings. Unfortunately, this phase is time consuming and an expensive exercise. Nevertheless, a fruitful one most cases. Various debtors react differently toward legal action. You will find those that will accept the Emoluments Attachment Orders (Garnishee Orders) with enthusiasm on their salary, as they benefit from the inconvenience of paying monthly. Then there are those who finally come to realize that finding the funds to repay now becomes a reality and uses the legal action and the time it provides to collect money to pay.
- We institute legal action on your behalf against any debtor capable of paying and unwilling to pay.
Does the court action ensure that I get my money?
This depends on the status of the Defendant. If the defendant is insolvent or unemployed and has no assets the recovery is doubtful. The same applies to companies that have ceased operations.
What does it cost me?
Each party is responsible for their own fees. ITC SOLUTIONS offers our clients the benefit of no upfront deposit for legal fees or court costs provided that successful judgment is passed. The Defendant / debtor will now become responsible for such fees.
What is a judgment?
After issuing a summons, the sheriff of the Magistrate Court delivers the summons to the Defendant. The Defendant has days to reply and have the following options:
- to admit that the claim is valid and due
- to defend the claim in full
- to acknowledge part of the claim.
If no response from the Defendant is received, we will apply for judgment and when it is passed, a judgment is issued.
What then?
The ball is now in our court to request from the court, either an order to get a deduction from the salary of the defendant or request the sheriff to remove furniture in order to pay for our claim.
Will I need to go to court?
If you have a valid claim against the debtor, it is seldom necessary to attend court as the defendant / debtors prefer to settle the claim before wasting their time in court, especially if they know they will loose.
However, sometimes court hearings do take place, especially in defended matters where the claim is in dispute. All parties will then have the opportunity to give evidence. ITC SOLUTIONS does not cover legal fees in defended court hearings.
Can ITC Solutions give legal advice?
It is not possible for us to provide you with specific legal advice on a particular matter, as we are not attorneys. However, we have firms of attorneys also specializing in debt collection which we instruct with particular matters and will not hesitate to request legal advice on behalf of our current clients.
Our service is mainly a cash recovery and debt collection service.