Declaratory Order Simplifies Debt Review at Court
New Declaratory Order about Debt Review
This month a significant court matter was heard about debt review in the Gauteng High Court before Justice Jansen. This has resulted in a Declaratory Order being issued about various parts of the court side of debt review. All of which will ease some of the ongoing issues that have been manifesting themselves in Gauteng Courts.
In the matter of Van Der Hoven Attorneys and The National Credit Regulator, The Department of Justice and Constitutional Development, The Banking Association of South Africa and The Debt Counsellors Association of South Africa, Case Number 10918/2014, Justice Jansen ordered the following things:
Do the DC and Consumer need to be at court during the debt restructuring application?
First Declaratory Oder:
No, Affidavits from both parties are enough.
Does the Form 16 (application form) need to be included in the court application documents?
Second Declaratory Oder:
No. Since this document is often very flawed anyway it is not needed. What is needed is simply to know if the consumer is over indebted or not.
Does Service of the application have to be by a Sheriff of the Court to all parties?
Third Declaratory Oder:
No. I f all parties agree to service via email etc. that will be fine as long as their is proof it was delivered.
When applications are years old does it have to be done all over again and figures changed etc?
Fourth Declaratory Oder:
No. As long as the DC has been busy dealing with one or more of the creditors that is fine even if the matter is old.
Does the application have to have all the original documents?
Fifth Declaratory Oder:
No. An explanation about the original or not can just be included in the Affidavit from the DC.
Does the DC need to keep updating their proof of registration and payment to the NCR each year in the Application?
Sixth Declaratory Oder:
No. It can simply be stated in the founding affidavit.
Can Magistrates order changed interest rates where all parties have consented?
Seventh Declaratory Oder:
Yes. Great News.
Do DCs have to send the Form 17s to the credit bureaus or can they use NCRdebthelp?
Eighth Declaratory Oder:
NCR Debt Help is fine.
What a great ruling for the industry which will help in many courts where there has been some confusion about these issues. The order (which can be downloaded and dropped at you local Magistrate) will hopefully influence matters countrywide as the industry looks to streamline the court process.
Download the Declaratory Order here:Van Der Hoven vs The NCA – Decalratory Order
