I have defaulted on all my debts since I...

Asked by Precious M on 24-11-2023 00:59:40
Question posted in the Property Law category relating to Gauteng

I have defaulted on all my debts since I have lost my job. I would like to buy a house cash to ensure a residence for my family. Will my property be at risk with the creditors?

Message from the Lawyer

Posted by Att. Patrick on 24-11-2023 14:58:23

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.

Please keep in mind that our discussions is for general information purposes only. Our engagement on this website does not create an attorney-client relationship. 

Yes, your property will most definitely be at risk if you buy it. It doesn't matter if you buy it with cash or with a mortgage loan. It would still be an asset registered in your name... and that's the issue.

However, one of your creditors would need to sue you for a debt, and get a judgment against you at court, or a default judgment, and then come to attach your movable assets, and only then would they be able to come after your house. 

So it would be a little bit of a mission for one of your creditors... however if you owe them enough, then they will take this course of action. However, if you just owe them a couple of thousand, then their lawyer's fees will be more than that and I'm sure that they won't bother you further. 

But yes, your property will be at risk with your creditors. 

If you would like to view the entire answer, you will need to either login or register a FREE account.


DISCLAIMER: Advice or answers from Lawyers on South African Legal Advice are not substitutes for the proper advice of an Lawyer. South African Legal Advice is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Lawyer who assists with your question is not your Lawyer, and the response above is not to be considered to be legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains. The responses above are from individual Lawyers, not South African Legal Advice. The site and services are provided “as is”. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service.