What Happens When a Debt Is Handed Over to Attorneys?

For many South Africans, the phrase “your account has been handed over to attorneys” triggers anxiety and uncertainty. For businesses, it raises a different concern: “What happens next? How long will this process take, and will we recover our money?”

In this article, we unpack exactly what happens after a debt is officially handed over to a law firm specialising in debt recovery — step by step, transparently, and in plain language.

1. The Attorney Opens a Legal File and Assesses the Claim

Once a creditor hands over an account, the attorney begins with a file assessment, which includes:

• Reviewing the contract or credit agreement

• Confirming the outstanding balance

• Checking compliance with the National Credit Act (where applicable)

• Verifying that the debt has not prescribed

• Ensuring all supporting documents are available

A strong file upfront increases the chances of a successful recovery.

2. A Letter of Demand or Section 129 Notice Is Issued

The first formal step is sending a Letter of Demand or, in the case of credit agreements, a Section 129(1)(a) Notice.

This letter informs the debtor that:

• The matter is now with attorneys

• The amount owed must be paid within a specified time

• Failure to respond may result in legal action

Many debtors pay at this stage to avoid escalation.

3. The Call Centre Begins Pre-Legal Engagement

Most attorneys use a specialised call centre to negotiate repayment before going to court.This is not harassment — it’s a structured, legally compliant process.

The call centre will:

• Reach out to the debtor

• Verify employment and contact details

• Discuss settlement or payment arrangements

• Assist the debtor in understanding the implication of non-payment

• Record all engagements for legal protection

At this stage, the focus is resolution without litigation.

4. If No Solution Is Reached, Summons Is Issued

If the debtor ignores all attempts to resolve the matter, the attorney proceeds with litigation.

This involves:

• Drafting a summons

• Issuing it at court

• Having it served by the sheriff

• Giving the debtor an opportunity to defend the matter

If the debtor does not respond, the creditor may apply for default judgment.

5. Judgment Is Granted

A judgment is a court order confirming the debt.

Once judgment is granted:

• It is listed on the debtor’s credit profile

• It remains valid for 30 years

• It allows the creditor to enforce payment through legal mechanisms

This is often the turning point where debtors begin engaging.

6. Enforcement: EAOs, Attachments, or Settlement

After judgment, the attorney can enforce payment through:

✔ Emolument Attachment Orders (EAO) / Garnishee Orders

A portion of the debtor’s salary is deducted directly and paid to the creditor.

✔ Attachment of Movable Property

The sheriff may attach assets to be sold in execution.

✔ Attachment of Funds

In some cases, bank accounts may be attached.

✔ Negotiated Settlement Under Judgment

The debtor may agree to a structured repayment plan.

Attorneys ensure that all enforcement actions comply with South African law and protect both parties’ rights.

7. Post-Judgment Monitoring

Sometimes a debtor cannot pay immediately.However, circumstances change—employment, assets, finances.

A professional debt-collection attorney monitors:

• Updated contact details

• Asset acquisition

• New employment

• Changes in financial standing

This helps the creditor recover funds even at a later stage.

Final Thoughts

When a debt is handed over to attorneys, the goal is not punishment — it is structured, legally compliant resolution.

For businesses, attorney involvement ensures:

• Better recovery rates

• Compliance with all regulations

• Ethical and professional treatment of debtors

• Reduced financial loss

For consumers, it provides clarity, structure, and legal protection.

If your business needs help recovering outstanding debt, our team is ready to assist.

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