Frequently Asked Questions

1. Clear Future has more than 35 years’ experience combined and we have helped hundreds of people and companies with their debt

1. You will get the best and professional advice from our consultants on which process will best suit for your situation
2. You will receive protection under the National Credit Act
3. Your Debt Counsellor negotiates a repayment plan for you with your creditors with lowered interest rates on most of your outstanding accounts
4. You will pay one consolidated and structured amount, which will be distributed amongst the creditors
5. You will receive a Court Order to guarantee your repayment plan and period whilst you are paying your installments regularly as required

1. You will experience relief from the very first monthly installment
2. Unless judgement was already taken against you, you are protected under the law from the day you are registered on our system

1. For Debt Counselling – as soon as the creditors received your 17.1 ad 17.2 forms (the official documentation from a Debt Counsellor to a creditor to record that the consumer is under Debt Counsel) they must, by law, communicate with the Debt Counsellor and not with you. However, the debt review department does not always inform the collections department that the consumer is under Debt Review
2. Should any creditor still contact you for payment, they must be told to contact Clear Future as we will then communicate with them
3. For Sequestration and Liquidation, this process will be discussed during consultation

Our consultation (personal and/or telephonically) is free. A Debt Counsellor’s fee is regulated by the National Credit Regulator and is set out as follows:

1. A restructuring fee equal to the first installment of the debt re-arrangement plan but to a maximum of R6 000.00 (excluding VAT), in respect of a consumer whose applications have been accepted in terms of 86(7) (b) or 86(7) (c)
2. 100% of the fee is payable at the first installment
3. A legal fee for a Court Order of an amount equal to the second installment of the debt re-arrangement plan minus the DC aftercare fee and PDA fee but to a maximum of R8 000.00 (excluding VAT)
4. A monthly aftercare fee of 5% (excluding VAT) of the monthly installment of the debt re-arrangement plan up to a maximum of R400.00 (excluding VAT), for the remaining period of the debt re-arrangement plan
5. A monthly PDA (Payment Distribution Agency) of 3% (plus VAT) of the monthly installment, to a minimum of R57.00 and to a maximum of R570.00 (plus VAT), for the remaining period of the debt re-arrangement plan
6. Should the consumer withdraw from the process before completion, a fee equal to 75% of the restructuring fee is payable by the consumer

Sequestration is the process of declaring yourself insolvent/bankrupt (voluntary surrender of your estate) a High Court application under the Insolvency Act. You can apply for SEQUESTRATION in the following instances:

1. A natural person’s liabilities (debt) exceeds their assets
2. Judgement has been obtained on your assets
3. The client has shortfalls on assets after repossession
4. The client cannot service the debt monthly and declare to the creditors that instalments can’t be met, this is an act of insolvency

Liquidation is the process by which a legal entity is closed down, because the business has become insolvent. In general the Directors will apply for Liquidation under the following circumstances:

1. The Business is insolvent, the Liabilities exceed the Assets. Remember if a Business conduct trading while factually insolvent, you as a Director will be held personally responsible for any Debt incurred
2. When the Business ran into Liquidity problems. Find it difficult to pay Trade Creditors and the situation will not better on the short term
3. The Business has stopped trading

1. Contact a company/lawyer who specialises in debt and insolvency law. They can help you understand your situation and guide you through the process.
2. Apply for sequestration your debt will become R0-00 and start a new estate.
3. Obtain sound professional advice and information and make an informed financial decision.
4. Let Clear Future do an assessment for you to determine your financial position.
5. Consider Financial Counselling and consider a company with a good track record.
6. Contact Clear Future for professional advice.

Sequestration will impact your financial life in the following ways:

1. You will lose your assets such as your house and car.
2. Credit Rating Impact: It will negatively affect your credit score. However, you can apply for a rehabilitation order and get your credit status back to normal.
3. You cannot apply for credit if you are declared insolvent.
4. Some professions don’t allow sequestrated individuals to practice however, it is only a few and you are allowed to be employed and follow a profession.
5. Remember, these impacts are temporary, breathe easy as Clear Future is here to help you through your debt resolution journey.

1. An individual or entity, known as a trustee, is appointed to handle your insolvent estate.
2. Your assets (which could include property, vehicles, movable assets etc.) are typically sold off to pay back as much of your debt as possible.
3. The money raised from the sale of your assets is used to pay off your creditors.
4. You are allowed to receive an income.
5. You cannot apply for credit.
6. After a period of approximately 3-5 years, you may apply for rehabilitation, once the rehabilitation order is granted you can apply for credit again.