Do you struggle with outstanding book debts and non-compliant debtors? Contact Barnard Incorporated and partner with us to re-align your debtor strategy and to recover your outstanding debt.
We offer unique and tailor-made debt collecting fee structures that will suit each client’s needs, ranging from individuals to corporate entities. Fee structures range from fixed fees per matter for each litigation phase to success fees for amounts actually recovered.
All debtors are first subjected to a soft collection process and if this doesn’t yield the required result, a formal litigation process is immediately initiated.
Soft Collections is a pre-litigation process and is a precursor to formal legal steps. In this process we identify debtors that wish to continue their business relationship with the creditor and we focus on negotiating suitable payment plans.
Non-responsive debtors are moved to the litigation department where formal legal steps are instituted.
The following is a brief description of the procedures in the High and Magistrate’s Court as well as a description for the required documentation and information:
- A Letter of Demand or Section 129 letter in terms of NCA (where applicable) must be sent via registered post to the Debtor, containing the following information:
- The outstanding amount with interest that is due;
- The time period in which the outstanding amount with interest that should be paid in full;
- If the NCA is applicable, the Debtor must be afforded the opportunity to refer the matter to a Debt Counselor, Dispute Resolution Agent, Consumer Court or Ombud with jurisdiction, with the intent to resolve the dispute under the credit agreement and agree to a plan to bring payments up to date; and
- Should payment not be affected within 10 (ten) days after receipt of the Letter of Demand, the Creditor may proceed with formal legal action against the Debtor;
- Should payment not be effected within 20 (twenty) days after receipt of the Letter of Demand, the Creditor may proceed to list the Debtor at the relevant Credit Bureaus;
- If no response is received after the 10 (ten) day period, Summons will be issued and served on either the domicilium address or personally on the Debtor;
TAKE NOTE: The domicilium address is the address as contained in the agreement between the Creditor and Debtor wherein it is agreed that service of all legal notices and pleading can be served on that given address.
- After the summons was served on the Debtor in terms of the rules of the relevant court, the Debtor is afforded 10 (ten) court days to serve and file its Notice of Intention to Defend;
- Should the Debtor fail to serve and file its Notice of Intention to Defend within the 10 (ten) court days, we will proceed to apply for Judgment by Default;
- Upon receipt of the Judgement by Default, we can proceed with the Warrant of Execution against the Debtor’s movable assets and instruct a Sheriff to see to the attachment of the Debtor’s assets;
- Should the Debtor serve and file its Notice of Intention to Defend within the 10 (ten) court days, we can within 15 (fifteen) court days after receipt of the aforesaid notice, lodge an Application for Summary Judgement. Summary Judgment is a further step in law available to the Creditor (Plaintiff) to show the court that the Debtor (Defendant) only served its Notice of Intention to Defend to stay court proceedings without a reasonable defence. The Judge (High Court) or Magistrate (Magistrate’s Court) hears the argument(s) by both representatives and then makes a decision on the facts. In the instance where Summary Judgment is granted, the Debtor (Defendant) defence is struck out and judgment is awarded for the amount as set out in the summons.
- In the instance where Summary Judgement is not granted, the Debtor (Defendant) is afforded the opportunity to deliver its Plea (and Counter Claim if applicable) within 20 (twenty) court days and the matter is prepared for trail purposes;
REQUIRED INFORMATION WHEN INSTITUTING LEGAL ACTION:
In order for our offices to prepare the Letter of Demand or Summons, we require the following information and documentation:
- Full particulars of the Creditor (Plaintiff) and Debtor (Defendant) with specific reference to:
- Full names, surname and identity number in the instance where the parties are a natural person;
- Full name of the Company or Closed Corporation with registration number in the instance where the parties are a juristic entity.
- A clear description of the claim against the Debtor (Defendant) with supporting documentation, such as the contract and all invoices.
- All proof of demands sent by the Creditor (Plaintiff) to the Debtor (Defendant) requesting payment of the outstanding debt(s).
- A domicilium address or confirmed address of the Debtor to ensure proper service of the summons and to avoid instances where the Debtor could not be found.
Let our expert team of attorneys and collection agents help you to take the burden of your shoulders and allow you to concentrate on your individual and/or company objectives.
Feel free to contact our offices should you require any further information and/or assistance.
Barnard Incorporated is a firm of attorneys situated in Pretoria, Centurion.