Question posted in the National Credit Act Law category relating to Gauteng
Question value: R 300.00
I'm unable to pay my creditors (credit card, revolving loan, overdrafts etc) at this stage and I'm wondering once there's a default judgement against my name, the creditors will be able to repossess my personal assets, but what about my company assets? (My company is a Pty Ltd and I'm the sole owner)
Should I be worried that my company assets (such as vehicles that are under my company name) be repossessed?
Secondly, if there's a default judgement against my name, How does the default judgement impact me, and for how long?
thanks in advance
Answer to the Question
Hi there and thank you for your question,
I am a practicing attorney based in South Africa and I will assist you with your question. Please feel free to ask as many follow up questions in order to clarify your question. If you have a new question, you must please open a new thread.
Having a default judgment against you (in your personal capacity) means that the attorney acting for the judgment creditor will be able to apply for a warrant of execution against you. This means that the sheriff can attach your assets to sell them to recover the debt.
But only your assets.
The sheriff can't attach any assets which don't belong to you. e.g. your company's assets.
However, the sheriff can attach the shares in the company (which I assume do belong to you) and could sell those shares by auction to somebody else. That person would, in effect, then be purchasing the shares and all of the company assets. But this is quite hard to do and is not often done.
The default judgment lasts for 30 years, so basically forever.
It is also recorded on your credit listing for 3 - 5 years.
The only way to get rid of it is to pay the outstanding amount and then apply for the default judgment to be rescinded (removed) due to the fact that you've paid the debt.
If there is a part of the answer which you need more advice on, or clarity please continue in this same thread instead of opening a new question.
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