Get back the money someone owes you

Does someone owe you money?

Here’s what you must know to squeeze the debt out of your debtor.

• Start right. Never grant a loan without having your paperwork in order. A payment agreement should always precede transferring any money.
• A clause protecting your rights must be included. Such a clause states that, in the event of the debtor failing to make due payment, the creditor will be authorised to demand the outstanding loan amount. This is claimed along with legal costs. If the debtor fails tp pay up, the creditor may apply to the relevant Magistrate’s Court for judgement against the debtor.
• If anyone owes you money, be sure to advise them accordingly – in writing. This is done with a letter of demand. The letter states where the claim comes from and how much is due to the creditor. This letter is sent via registered mail. The receiver must acknowledge receipt.

• If payment is not received, summons may be issued. From this point onwards, the creditor is called the plaintiff and the debtor is known as the defendant.
• The defendant may defend the claim or consent to judgment being taken against him/her. If he/she simply ignores the summons the plaintiff may simply apply for the judgment to be granted by default. If granted, it will be valid for 30 years and if the defendant does not pay up, the plaintiff may even resort to obtaining an emolument attachment order against the plaintiff.

• In plain language, this means that the plaintiff may obtain a court order that a part of the defendant’s salary is deducted every month towards covering the indebted amount.
• Another option that may be elected by the plaintiff is called a garnishee order. This means that a third party who is indebted to you may be ordered to pay the debt due to you directly to the creditor until the amount that is due by you has been paid in full.