six years
Under the Limitation Act 1980 a creditor has six years to chase most unsecured unpaid debts, or twelve years for some mortgage shortfalls. This ‘limitation period’ starts from the time of your last payment or acknowledgement of the debt, not the total length of time you’ve been making payments.

What happens if you leave debt in the UK?

Debts will continue to amass while you are out of the country with fines and interest being added on to the existing balances. If you do then return to the UK after a year or so, you may find your debt problems worse than when you left. Your credit record will also continue to take a hit as the defaults mount up.

Can I be chased for my debts abroad?

Can creditors chase me for debts abroad? Overseas creditors can still take action to collect a debt, including: Using a debt collection agency in your home country to contact you. Starting court action in your home country.

Can I leave the country if I have debt?

Technically, nothing happens to your debt when you leave the country. It’s still your debt, and your creditors and collectors will continue trying to get you to pay it back. Depending on the size of the debt, the creditor may choose to bring suit against you in your new country of residence.

Are there any debt collectors in South Africa?

Not only is a large chunk of your salary going towards repayments, but you are constantly being hounded by debt collectors. But, you too have rights. The National Debt Collection Act 114 of 1998 outlines the debt collecting process in South Africa.

Can a debt be prescribed in South Africa?

And sadly, many South Africans do not know that some debts prescribe. The Prescription Act is comprehensive, but in essence, a debt is deemed to have prescribed if it’s been three years since your last payment, and in that time you have not acknowledged the debt in any way, or been summoned in respect of it.

How does debt recovery work in South Africa?

Once the creditor accepts your offer in writing, then no further legal proceedings can be taken against you. Similarly if you are served with a summons for a monetary debt, then in terms of Section 58, you can as a debtor consent to judgment and have an order to pay off the debt in instalments.

Where can I get help with debt collection?

The debt collection procedure can in many instances be a delayed process, but with an end result of successful recovery. Contact our attorneys in Cape Town, for professional legal advice and assistance with your debt collection.