Recovering debt

Bernie

Expert Member
Joined
May 2, 2006
Messages
1,990
#21
Yes I will do that - the scary part is that she has her own law practice so I am sure has a trust fund so I will definitely report her to the law society - they need to know what she is capable of.
With a judgement against the client, they will not be able to practice as lawyers. Is the judgement pending or has it been issued.
 
Joined
Nov 9, 2018
Messages
12
#22
With a judgement against the client, they will not be able to practice as lawyers. Is the judgement pending or has it been issued.
The judgement has been issued. I will speak to my lawyer about who to report it to so I can stop her practicing.
 

yebocan

Executive Member
Joined
Sep 22, 2005
Messages
9,171
#23
I have worked with my suppliers for the past 4 years and have had a very good relationship with them. I sourced the suppliers on behalf of the client and most of the debt was to the venue for the food. None of my suppliers expected me to carry the cost but I would never have been able to not pay them. I had to make the call to go ahead with the wedding - it was actually too late to cancel it because all the food had been purchased and the client promised me that they only needed two days and they would pay in full. I have been in this business for 15 years and never have I experienced the lies, stories and deceit - they planned their wedding in 6 weeks so time was against us right from the start. They were unbelievably convincing and blamed so much on the bank with funds not being released etc etc. Lesson learnt but I have to recover the money.
Sorry about your issue...word from the wise...when payment can not be effected and it is followed with bank this, bank that...release of funds...warning lights should be flashing!

+ name and shame!
 
Joined
Nov 9, 2018
Messages
12
#24
Sorry about your issue...word from the wise...when payment can not be effected and it is followed with bank this, bank that...release of funds...warning lights should be flashing!

+ name and shame!
She told me that the funds were in a 32 day cal account - wedding was planned 6 weeks in advance so timeline was very close.
 

SauRoNZA

Honorary Master
Joined
Jul 6, 2010
Messages
32,924
#25
Next time I trust you will cancel the event or put up a sign saying it won't continue until the bill has been settled.

That was ultimately your mistake right there.
 

eehellfire

Executive Member
Joined
Sep 25, 2007
Messages
9,394
#27
Thanks - the total debt including the initial debt, lawyer's fees and interest is about R220 000.00. It is very scary and has affected my small business in a huge way so I need to do whatever I can to recover the debt.
Debt collectors for a single debt (even a large debt) aren't going to be able to do more than you already have in terms of legal process.
Not much you can do. Leave the judgment, as this will prevent them from getting any further debt in future for the next 10 years. Closer to the time, do the necessary and try to recover your debt. If they still do not pay, get another judgment, which will block them for another 10 years.

Forget debt collectors. It will cost you a lot of money and there is nothing they can do more than what you already did. Unless, you are referring to the 'bone breakers, who goes out and hurt them physically until they pay the debt. Problem is, if they do not have money, you can have them hurt as much as you want, you will still not get your money back and still have to pay those people who did the 'job' for you.

At the end of the day, write this off for now and consider it a lesson learnt.
Judgements are enforceable for 30 years. They stop being reported on by the bureaux after 5 years though.
You should get a warrant and send the sheriff to attach her assets. Have him do this during the day when she has clients there. She must sign an AOD with a repayment plan so that you at least start recovering your money.
 
Joined
Nov 9, 2018
Messages
12
#28
Debt collectors for a single debt (even a large debt) aren't going to be able to do more than you already have in terms of legal process.


Judgements are enforceable for 30 years. They stop being reported on by the bureaux after 5 years though.
You should get a warrant and send the sheriff to attach her assets. Have him do this during the day when she has clients there. She must sign an AOD with a repayment plan so that you at least start recovering your money.
Thanks for the information. We sent the sheriff to go and attach and he was told that it wasn't her law firm and she only rents an office there - it is probably true. Now we are trying to locate her physical address so we can attach from her home. I am also contacting the law society and I want to report her with the copy of the judgement - I am hoping it will mean that she can't practice anymore....
 

ambroseg1

Executive Member
Joined
Jul 15, 2008
Messages
9,967
#29
Thanks - I have been thinking that it is better to carry on with the legal route but it is so frustrating and drawn out - two years down the line, I am still waiting! The client is a lawyer and knows exactly how to fight the system. Breaking bones just isn't what I am capable of :).
Client is a lawyer. Yet the 300 people he invites to his wedding are savages who would've broken the place had you refused them entry?
 

eehellfire

Executive Member
Joined
Sep 25, 2007
Messages
9,394
#30
Thanks for the information. We sent the sheriff to go and attach and he was told that it wasn't her law firm and she only rents an office there - it is probably true. Now we are trying to locate her physical address so we can attach from her home. I am also contacting the law society and I want to report her with the copy of the judgement - I am hoping it will mean that she can't practice anymore....
If it's not her law firm and she's an employee, can you not pursue an emolument attachment order (to garnish her salary)?
 

Dark Agent

Expert Member
Joined
Nov 30, 2008
Messages
2,005
#31
I being through this 4 times myself and all ended up just getting wipe after amnesty act. I loss a lot of money for service provided and ended up with debt myself. I have one rule, 50% before and 50% on delivery of service! I work for a company now that provides credit services to many clients.

Don't go to debt collector. They will default client and after 3 years the debt is wiped.
Best course is take Judgement and make sure it reported to all 4 Credit Bureaus. The judgement will stay 5 years(Except Bond and tax related debts can be relisted up to 30 years), if you don't communicate with client every 3 years, the debt becomes prescribed and removed completely. So either 5 years they will pay or kiss good bye. Also very important is to make sure the judgement is 100% correct, one small mistake could void the judgement completely. Just last month, one debtor who got judgement 3 years ago, decided it was invalid and we could not retake judgement since prescribed already.

Civil Judgement Types.
30 Years - Debt secured by a mortgage bond or judgment delivery by a court order. Or property/Land related claims.
5 years - Debt relating to a negotiable instrument
3 years - Debt arising from delict or contract, or any other liability.


Since you never provide any asset to the client, you sadly cannot have a 30 years judgement. As far as garnishing order(GO), first a Judgement needs to be made that agrees on the amount that will be paid and if client fails then GO will be enforced. GO on other judgments like tax, child maintenance or government loans does not need client agreement.

Civil judgement != Criminal Judgement. She can still practice law.

Before clothing stores used to take judgment like crazy for accounts of R500 and the judgement end up R5000-R7000. Now days they just default(cheaper) so 3 years they got a chance of recovering, if fails they sell to debt collector for 10 to 25% of profile value. Most people are smart, they tell debt collector to make settlement and get 60% off.
 

Jaws677

Senior Member
Joined
Dec 3, 2009
Messages
646
#32
I can only echo the sentiment that using a debt collector is throwing good money after bad.
I had a renter that could not pay his monthly rent anymore. It took me a few months and a lot of lawyers fees to get them out of the house.

I had a signed acknowledgement of debt and all the correspondence between us.

An open and shut matter I thought.

The original terms with the debt collectors was that they dont charge anything if nothing is retrieved. They only keep 20% of the recovered debt.

Cool. Then two months later , hi sir we just need R2.5k for court cost. Mmm bit of a surprise that’s not what we agreed on , ooh I misunderstood, ok. I paid.

Now 2 years later then send me an invoice for another R2,2k with not a cent recovered.

They are worse than my nonpaying renter. Capture1.PNG

Capture2.PNG
 

mattrudlles

Senior Member
Joined
Nov 20, 2015
Messages
768
#33
Just be careful of relying on the debt only prescribing after 30 years. You have gotten judgment now, and that judgment will become superannuated after 3 years, after which time you cannot enforce the debt through execution orders etc (despite it only prescribing after 30 years). You would need to approach the HC to revive the judgment and allow you to enforce it again.
 
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