Debt Collection In South Africa From Liquidated Companies And Closed Corporations

Owners, Managers, financial managers and credit controllers of companies and businesses need to realise that from a legal perspective it is critically vital that if a company wants to liquidate itself or declare itself insolvent they must legally set up and register their company or closed corporation if the company has found itself in debt due to its inability to pay its creditors and is guilty of performing any of the following actions. The company or closed corporation cannot pay their debts because they are waiting for a large amount of money to be paid to them from another business or company. The company or closed corporation cannot pay their debts to their creditors because their clients or customers are not paying them.

The company or closed corporation cannot pay their debts due to the fact that business is bad and the South African economy is weak and the company’s or closed corporation’s directors are trying to borrow money from a bank or another financial institution or third party. These are the three basic indicators to all creditors that their debtors are in financial trouble and that their debtors, no matter what the debtors say, will be able to pay back their debts to their creditors. As a debt collection and debt recovery attorney, Ivan Zartz is fully aware of these indicators and acts immediately, on behalf of his creditor client, should any of these excuses be used by his client’s debtors. Once these excuses are used by debtors the related creditor’s financial manager or credit controller or company assigned representative must make written notes of these excuses, detailing exactly what was said, who said it and the date and time that these excuses were made.

Once these excuses have been written down, both the creditor and the debtor need to authorise the written document to be used as legal proof that these excuses were made by the debtor and that the creditor has noted them. This is especially the case of these comments were made over telephonically by the debtor to the creditor. An example of such a telephone call that might occur between a debtor and their creditor is as follows, quote “I confirm that I telephoned you on this date, demanding payment of the sum of a certain amount of money. During the course of the discussion, you advised me that you could not pay the debt, as you were owed substantial amounts of money by your customers who were just not paying. I confirm that there has never been a dispute relating to any of the transactions between our companies but rather that you are short of funds” end quote.

Visit https://ivanzartzattorneys.co.za/debt-collection/ to contact him and his attorneys in Johannesburg to solve your debt collection recovery matters.

To learn more about the legal assistance provided by attorney Ivan Zartz in Johannesburg concerning debt collection and debt recovery visit this link Debt Collection Recovery Collectors South Africa.

Author: Ivan Zartz from Ivan Zartz Attorneys.
More Info link: https://ivanzartzattorneys.co.za/debt-collection/

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