Recovering a debt owed to you can be one of the most frustrating and stressful procedures one can endure. Here at Welman and Bloem Inc., we have a team of attorneys who specialize in collecting debt and we deal with the frustrations and stress so that you don’t have to. For your convenience please see below a brief overview of the debt collection process:
- • Letter of Final Demand:
A letter of final demand will be issued to the debtor, failure by the debtor to respond to same within the time period provided is normally followed by a Summons.
A summons will be issued out of court which has jurisdiction over the matter (where the debtor resides, carries on business or is employed or where the cause of action arose). Once issued the summons will be served on the debtor by the Sheriff who has the proper jurisdiction (address of where summons ought to be served).
- Default Judgment:
If no settlement is reached within the time period allocated in the summons and the debtor does not serve an Appearance to Defend within 10 (ten) days after receipt of the summons, we may apply for Default Judgment.
- Summary Judgment:
When an Appearance to Defend is entered the creditor may file a notice to the effect that the debtor does not have a genuine defence and that the Appearance to Defend was only served in order to delay the process. If the Application for Summary Judgement is granted, then the matter will not go to trial.
If the Summary Judgment Application is dismissed or the debtor defends the action:
Evidence is led by each side and the court is required to decide, either to give a judgment or to dismiss the action.
If Default Judgment is granted:
- Warrant of Execution:
Once default judgment is granted, a warrant of execution is issued at court which allows the Sheriff to attach movable property of the debtor. After the Sheriff has made an inventory of the attached goods, he is then instructed to remove the attached goods and to arrange a sale in execution.
- Section 65 Proceedings:
This is available in the Magistrates Court only. When there are insufficient goods from the debtor to attach by the sheriff, a notice is issued out of court which calls the debtor to give evidence under oath on his financial position and ability to pay the debt. The court may order an attachment of debt, payment in instalments or Emoluments Attachment Order, or if the debtor fails to appear in court a warrant of arrest may be authorised by the court.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances – 15 August 2018.