Can I go to jail for debt in South Africa?

Asked by: Mrs. Bert Olson DVM  |  Last update: August 6, 2022
Score: 4.6/5 (60 votes)

A person cannot be jailed for refusing to pay his or her debts when the judgment against them is obtained. A liquidated firm could liquidate your account, take your salary, ntovestrated, an emoluments attachment order placed on your salary or your assets attached.

Can you be imprisoned for debt in South Africa?

According to the 1987 Charter (1 p.d. 2), no person will go to prison for debt and its provisions ensure no one will be incarcerated for it. For debt incurred with a credit card, such as all personal debt, this is a fair result.”. the Atty.

How long can you legally be chased for a debt in South Africa?

A consumer has not made any payments/acknowledged the debt directly or indirectly for the time periods specified below: Personal loans, credit cards, retail accounts and vehicle loans: three years. Mortgage loans, debts by court orders and money owed to the South African Revenue Service (SARS): 30 years.

Can you get imprisoned for not paying debt?

Although the law provides that one cannot be imprisoned for non-payment of debt, the obligation to pay what you owe another will always stand. As you may have read above, one can never escape the liability to pay, no matter how lenient you think the law is.

What happens if you can't pay your debt in South Africa?

Can you go to jail for not paying debt in South Africa? The kind of loan that you owe determines if you will go to jail for not paying it or not. If you refuse to pay your taxes or child support, for instance, you might be sent to jail.

A legal way to avoid paying off your debt in South Africa according to South African Law.

27 related questions found

What happens after 7 years of not paying debt?

Unpaid credit card debt will drop off an individual's credit report after 7 years, meaning late payments associated with the unpaid debt will no longer affect the person's credit score.

How long can you be blacklisted in South Africa?

A record of outstanding judgment will need to be removed from your credit report after five years, but it will remain active for thirty years afterward.As the result of all the years of activity, a credit provider theoretically can claim for debt owed to you for a certain period of time.

What happens if you cant pay debt?

Your debt will go to a collection agency. Debt collectors will contact you. Your credit history and score will be affected. Your debt will probably haunt you for years.

Will I go to jail if I don't pay my credit card?

The short answer to this question is No. The Bill of Rights (Art. III, Sec. 20 ) of the 1987 Charter expressly states that "No person shall be imprisoned for debt..." This is true for credit card debts as well as other personal debts.

Can a debt collector take you to court after 7 years?

Under the Fair Credit Reporting Act, debts can appear on your credit report generally for seven years and in a few cases, longer than that. Under state laws, if you are sued about a debt, and the debt is too old, you may have a defense to the lawsuit.

What happens if you ignore a debt collector?

Ignoring or avoiding the debt collector may cause the debt collector to use other methods to try to collect the debt, including a lawsuit against you. If you are unable to come to an agreement with a debt collector, you may want to contact an attorney who can provide you with legal advice about your situation.

What do I do if I get a debt summons in South Africa?

At the point of receiving a Summons, you should have already received a letter of demand for the debt. The process works as follows: A Section 129-Letter of Demand must be sent to you by the creditor. This letter gives you 10 [Ten] working days to either pay the indebtedness or to defend the matter.

What happens to debt after 3 years in South Africa?

A debt that has not been collected on for an uninterrupted period of 3 years would have accruing interest and collection fees, which the consumer was liable to pay, and which may further lead to a negative listing at a credit bureaux.

Which court deals with debt in South Africa?

Section 65A of the Magistrates' Court Act 32 of 1944 (“MCA”) allows for the recovery of a debt after judgment has been granted. While this form of recourse is only available in the Magistrates' Court, judgments obtained in the High Courts can be enforced through section 65M of the MCA.

What happens to a Judgement after 5 years in South Africa?

A judgment remains on your credit record for 5 years or until it is paid in full or a rescission is granted by the courts. Although not always the case, in general a consumer is listed as defaulting before a credit provider applies for a judgment.

Can a debt collector issue a summons?

Debt collectors will go to considerable lengths to collect large debts. If a debt collector sues you, you will be notified of the lawsuit via a summons, which will tell you why you are being sued, for how much and what date you must appear in court.

What happens if I don't pay my credit card for 5 years?

You could end up with a debt collection lawsuit and a judgment if you don't pay your credit card bill over time.

Can I go to jail for not paying online loans in the Philippines?

Will I go to jail if I have an unpaid loan? As explicitly stated in the 1987 Philippine Constitution under Section 20 of Article III, no one shall be imprisoned due to debt, so you don't need to worry about debt collectors threatening you that they will send out the police to arrest you tomorrow.

What happens if I stop paying a credit card?

When you stop making credit card payments, you could not only be charged late fees and higher penalty interest rates but also take a hit on your credit. If your unpaid balance lingers for too long, your account may go to collections, and you could be served with a debt collection lawsuit.

How do I get out of debt if I have no money?

Whether you work with a credit counselor or on your own, you have several options for eliminating debt, known as debt relief:
  1. Apply for a debt consolidation loan. ...
  2. Use a balance transfer credit card. ...
  3. Opt for the snowball or avalanche methods. ...
  4. Participate in a debt management plan.

How can I avoid paying debt collectors?

9 Ways to Turn the Tables on Debt Collectors
  1. Don't Wait for Them to Call. Consider picking up the phone and calling the debt collector yourself. ...
  2. Check Them Out. ...
  3. Dump it Back in Their Lap. ...
  4. Stick to Business. ...
  5. Show Them the Money. ...
  6. Ask to Speak to a Supervisor. ...
  7. Call Their Bluff. ...
  8. Tell Them to Take a Hike.

How can I wipe my debt?

Ways to clear your debt
  1. Informally negotiated arrangement.
  2. Free debt management plan (DMP )
  3. Individual voluntary arrangement (IVA)
  4. Bankruptcy.
  5. Debt relief order (DRO)
  6. Administration order.
  7. Debt consolidation and credit.
  8. Full and final settlement offer.

How long does debt Review stay on your name in South Africa?

You might be asking 'how long does debt review stay on your name? '. This usually takes five years as your borrowing history will indicate your default and payment history.

Can I legally write off my debt?

Most creditors are able to consider writing off their debt when they are convinced that your situation means that pursuing the debt is unlikely to be successful, especially if the amount is small.

How do I check if im blacklisted in South Africa?

One of the largest credit bureaus in South Africa, Transunion have an SMS option to find out if you have been blacklisted. The service can also give you your credit score, account status and a credit summary for a nominal fee. Remember, you can get one free full credit report per year.