Debt Counselling

What level of service can I expect from my debt counsellor, and can I change counsellors if I am not satisfied?

"I went under voluntary debt review in September 2008.

My question is what level of service should I expect from my counselor? I feel that they are extremely patronizing towards me, have made critical errors in the past and are not forthcoming with information and don't seem to return phone calls or emails.

Is it possible to change counselors? I have never even spoken to the registered counselor; I deal with one of his team of assistants. Is that the right way to do things?"

Answered by Lynette Grobler [NCRDC 129] from DebtCounsellorsSA.com (Tel: 087 808 6176)

It is extremely important that a good relationship develops between the client and the debt counsellor. There rests a responsibility

Debt Counselling and Judgments...

We all are familiar with the fact that judgments may not be taken against a person who is under debt review. Does it only apply to judgments in terms of credit agreements? Can debt review protect a person where the action is based on a different cause of action - one that is not related to the NCA?
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How will Debt Review affect a sole proprietor (Self Employed Person) if the Business is not a separate Legal Entity? ?Will the Business Account be affected?

Answered by Arno Louw [NCRDC 585] from Debt Advice Services (Tel: 072 409 2826 / 012 348 9780)

Yes, unfortunately, if your business is not registered as a closed corporation or company, that means you are trading in your own name. All personal debts have to be included in a debt review.

Answered by Desiree Phillips [NCRDC 230] from Octogen - Randburg (Tel: 0860 111 452)

It would most certainly affect the business account. When you act as sole proprietor you are acting in your name. Your business accounts will also be included in your debt review. You have no protection on the business as your business is not a legal separate entity as in a close corporation or company.

Answer by A. W. Morton [NCRDC 542] from Debt Assist (Tel: 011 869 1005):

Administration

The administration order procedure is incorporated by the Magistrates' Court Act Section 74 of Act 32 of 1944. An application is lodged in the Magistrates Court. This procedure was designed for individual's who could not be sequestrated. The total debt may not exceed R50 000-00. An administration order in magistrate court does not exclude a sequestration order in other words a person and can still be sequestrated. An administrator is appointed to manage the financial affairs of the debtor. This procedure is for individuals who are in a debt trap. The administrator is only entitled to claim 12.5% of money collected from the debtor as fees and pays pro rata dividends to the creditors every (3) three months, in relation to their claim amount.