A Comparison Between Formal Debt Administration and Debt Review – The Pros and Cons of These Measures and Suggestions for Law Reform (Part 2) by Andre Boraine, C. M. Van Heerden, Melanie Roestoff :: SSRN
A Comparison Between Formal Debt Administration and Debt Review – The Pros and Cons of These Measures and Suggestions for Law Reform (Part 2)
45 De Jure Volume 2 2012 pp. 254
18 Pages Posted: 26 Feb 2018
C. M. Van Heerden
English Abstract: Roughly a decade ago, after complaints from consumers about abuse of the debt administration procedure, the Department of Justice and Constitutional Development launched a project aimed at reforming this procedure This project was however suspended because of an independent initiative by the Department of Trade and Industry to reform consumer protection legislature, culminating in the National Credit Act of 2007. Sadly, when instituting the debt reviewing procedure in the National Credit Act the legislature let pass a golden opportunity to properly and completely revise the law regarding debt relief measures. In addition the legislature did not properly consider the relationship between debt review and other existing debt relief measures, in particular the administration order. The aim of the first part of this article is therefore to analyse administration as set out in the Magistrates Court Act and debt review as set out in the National Credit Act, and in doing so to identify certain positive and negative aspects of both these procedures. In the second part of this article a comparison between administration and debt review is drawn and suggestions for possible legal reform are made. The authors suggest that South Africa is in need of a complete reformation of its debt rescheduling measures and that the legislature should make provision for a single measure applicable to all debt rescheduling cases. With regard to the comparison drawn between administration and review, the authors highlight the main issues the legislature should, according to them, take into accordance when contemplating such a new rescheduling process.
Afrikaans Abstract: 'n Vergelyking tussen formele skuldadministrasie en skuldhersiening – die voor- en nadele van hierdie maatreëls en voorstelle vir regshervorming Ongeveer ’n dekade gelede het die Departement van Justisie en Konstitusionele Ontwikkeling, na aanleiding van klagtes deur verbruikers oor die misbruik van die administrasieprosedure, ’n projek ter hervorming van hierdie prosedure van stapel gestuur. Hierdie projek is egter opgeskort vanweë ’n onafhanklike inisiatief van die Departement Handel en Nywerheid om verbruikerswetgewing, wat in 2007 op die Nasionale Kredietwet 34 van 20051 uitgeloop het, te hervorm. Ongelukkig het die wetgewer met die invoering van die skuldhersieningsprosedure ingevolge die Nasionale Kredietwet 34 van 2005 ’n gulde geleentheid laat verbygaan om die reg insake skuldverligtingsmaatreëls behoorlik en volledig te hersien. Daarbenewens het die wetgewer ook nie die verhouding tussen skuldhersiening en ander bestaande skuldverligtingsmaatreëls, in die besonder administrasiebevele, behoorlik oorweeg nie. Die doel van hierdie eerste gedeelte van die artikel is dus om administrasie ingevolge die Wet op Landdroshowe 32 van 1944 en skuldhersiening ingevolge die Nasionale Kredietwet 34 van 2005 te ontleed en sodoende sekere positiewe en negatiewe aspekte rakende hierdie twee prosedures te identifiseer. In die tweede gedeelte van die artikel word ’n vergelyking tussen administrasie en skuldhersiening gedoen en voorstelle ter regshervorming gemaak. Die skrywers doen aan die hand dat Suid-Afrika ’n volledige hersiening van sy huidige skuldherskeduleringsmaatreëls benodig en dat die wetgewer vir een enkele maatreël wat op alle skuldherskeduleringsgevalle van toepassing is, voorsiening moet maak. Na aanleiding van die vergelyking tussen administrasie en skuldhersiening belig die skrywers die hoofpunte wat die wetgewer na hul mening in ag moet neem wanneer so ’n nuwe prosedure ontwerp word.
Boraine, Andre and Van Heerden, C. M. and Roestoff, Melanie, A Comparison Between Formal Debt Administration and Debt Review – The Pros and Cons of These Measures and Suggestions for Law Reform (Part 2) (2012). 45 De Jure Volume 2 2012 pp. 254, Available at SSRN: https://ssrn.com/abstract=3124215