Threat of summons

[MJG]

Business has not been good enough and thus I am behind by a few months on my courier account.
I fully intend to pay the account and have communicated this to them
I have made a small payment to the acvohntvand intend to continue to do so until the account is paid up.
They have now sent a mail saying that they are going to send a final letter of demand and issue a summons.
What defense do I have if any on a case such as this?

 

[ToxicBunny]

None really... You can get the court to try agree to a payment plan but it's not a guarantee.

 

[bwana]

What defense do I have if any on a case such as this?

Talk to them, if they're agreeable come up with a repayment schedule, and stick to it.

 

[Steamy Tom]

Did you end up taking both of those business loans?

 

[Tman*]

Try to work out an agreement outside court.

If all else fails and they do issue summons, don't ignore it.

 

[MJG]

Did you end up taking both of those business loans?

I ended up taking neither at the end of the day.

 

[MJG]

Try to work out an agreement outside court.

If all else fails and they do issue summons, don't ignore it.

They have issued a final demand letter.
I have suggested a payment plan and the attorney has asked if I will sign an acknowledgement of debt. Is this advisable?

 

[Steamy Tom]

They have issued a final demand letter.
I have suggested a payment plan and the attorney has asked if I will sign an acknowledgement of debt. Is this advisable?

yeah you should do it, they are just protecting themselves.

 

[Tman*]

They have issued a final demand letter.
I have suggested a payment plan and the attorney has asked if I will sign an acknowledgement of debt. Is this advisable?

if you legit owe the cash chances of you "winning" in court are slim

Signing an AOD without going to court will save you some money in terms of extra lawyer fees (from both sides), time and stress. Just make sure you can honour the terms of the AOD and actually pay your debt.

 

[MJG]

if you legit owe the cash chances of you "winning" in court are slim

Signing an AOD without going to court will save you some money in terms of extra lawyer fees (from both sides), time and stress. Just make sure you can honour the terms of the AOD and actually pay your debt.

Ok and if we cant come to an agreement what is worst case scenario?

 

[JayM]

Ok and if we cant come to an agreement what is worst case scenario?

They go to court and get an order to liquidate your business. Are you a Pty/cc? Or sole proprietor?

 

[MJG]

They go to court and get an order to liquidate your business. Are you a Pty/cc? Or sole proprietor?

PTY.
But what would the purpose be to liquidate the business. The business holds no assets other than a cellphone contract and a vehicle which is still owned by Wesbank

 

[Pineapple Smurf]

if your company is an SOE don't fret, ask Uncle Cyril for a R2bill bailout
just kidding, i hope your business picks up nicely this year and that you and your courier company can come to a nice arrangement, all the best for the year ahead

 

[JayM]

PTY.
But what would the purpose be to liquidate the business. The business holds no assets other than a cellphone contract and a vehicle which is still owned by Wesbank

They don't know that. By the sounds of things, your business is already insolvent and should not be trading. If you trade while being insolvent, you can become personally liable as a director.

 

[Tman*]

Ok and if we cant come to an agreement what is worst case scenario?

Summons > court > judgment > sherif arrives attach property > potential business liquidation.

For you personally a lot of stress, dealing with debt collectors, bad credit score etc etc

If you have no assets play open cards with your creditor.

 

[MJG]

Summons > court > judgment > sherif arrives attach property > potential business liquidation.

For you personally a lot of stress, dealing with debt collectors, bad credit score etc etc

If you have no assets play open cards with your creditor.

"Note that our client is willing on a purely without prejudice basis to accept payments of R3000.00 per month until the capital, interest and costs have been settled."

This is the latest email from their lawyer. I suggested R1000 per month. The total owing is R14000.
What does the 'purely without prejudice part mean?

 

[thehuman]

Asume some fees and interest will be added to the 14k , what is the maximum you can afford to pay them .

 

[MJG]

Asume some fees and interest will be added to the 14k , what is the maximum you can afford to pay them .

Honestly right now maximum R1000 but situation will improve soon and will be able to pay more. I have no intention of dodging the debt at all

 

[Tman*]

"Note that our client is willing on a purely without prejudice basis to accept payments of R3000.00 per month until the capital, interest and costs have been settled."

This is the latest email from their lawyer. I suggested R1000 per month. The total owing is R14000.
What does the 'purely without prejudice part mean?

Its hardly worth it for them to take you to court over R14 000, it will almost cost them more to recover it. Either the lawyer is seeing dollar signs or the people you owe money too are being petty. No one will win.

I suggest you make an appointment to go and see them (the people you owe money too, not the lawyer) face to face and put a hold on email communication.

 

[MJG]

Its hardly worth it for them to take you to court over R14 000, it will almost cost them more to recover it. Either the lawyer is seeing dollar signs or the people you owe money too are being petty. No one will win.

I suggest you make an appointment to go and see them (the people you owe money too, not the lawyer) face to face and put a hold on email communication.

I agree. It is definitely a case of both.
Unfortunately they are in Johannesburg and I am in East London so a face to face is out of the question