Debt summons received:

Can I apply for debt review after I’ve received a summons for debt?

No!

Section 86(2) read with section 130 of the National Credit Act forbids the debtor from approaching a Debt Counselor to apply for debt review of the debt after Summons.

But this is not the end of the line.

The bank has to prove it in fact delivered a notice in terms of section 129 of the National Credit Act to you before it proceeded with Summons.

If the bank fails to prove delivery, the Court hearing the Summons action can grant an order dismissing the Summons.

After Summons the Court can grant an order that the bank must deliver the section 129 notice to you and then you can apply for debt review, but you cannot make such application unless you have the Court order first.

If the bank terminates your debt review application and the issues Summons, the Court hearing the Summons can grant an order that the application for debt review resumes, but you need the Court order first.

This an example of a typical enquiry:

“My wife lost her job and we started default on our bond and vehicle account. Before we knew it we were 3 instalments in arrears and we started receiving calls from call centres 2 or 3 times per day. The callers were rude and very hostile. We approached a large debt counselling firm in Umhlanga. They put a proposal to our creditors which allowed us to catch up on the arrears over a 24 month period. We paid the R 18 000 fee to the debt counselor. The banks did not accept the proposal. They wanted us to pay an amount we could afford only if we sold our home. Then we received the summonses. The debt counselor advised an application for debt review cannot be made after a bank summons. Can you help us?”.
– Pravesh from Durban

The Solution

We gave Pravesh and his wife the good news. The banks did not terminate the application for debt review before the summons which means they were not permitted to issue such summons. The Court hearing the summons claim can give an order of debt review for one or more of their debts.

You only have 10 days to defend the bank’s summons. Speak to an experienced attorney to act on your behalf. Use an attorney who is qualified as a debt counselor. Don’t run out of time!

Be brave!
Receiving a debt summons or a bank summons is SCARY !!!

Free advice

We will start giving you some free advice as soon as you send your first email or WhatsApp.

A recipe for success

We achieve success in Court – view some of the reported cases:

• Zammit and Another v Standard Bank of South Africa Ltd (7593/10) [2011] ZAKZDHC 84 (2 June 2011) https://www.saflii.org/za/cases/ZAKZDHC/2011/84.html

• Wesbank, A division of Firstrand Bank Ltd v Jogee (5722/2010) [2012] ZAKZDHC 2 (27 January 2012) http://www.saflii.org/za/cases/ZAKZDHC/2012/2.html

• Mncwanga v Absa Bank Limited (13922/2018) [2022] ZAKZPHC 61 (21 October 2022) http://www.saflii.org/za/cases/ZAKZPHC/2022/61.html