Special Investigating Units and Special Tribunals Act, 1996
R 385
National Credit Act, 2005 (Act No. 34 of 2005)Chapter 4 : Consumer Credit PolicyPart D : Over-indebtedness and reckless credit85. Court may declare and relieve over-indebtedness |
Despite any provision of law or agreement to the contrary, in any court proceedings in which a credit agreement is being considered, if it is alleged or it appears to the court that the consumer under a credit agreement is over-indebted, the court may—
| (a) | refer the matter directly to a debt counsellor with a request that the debt counsellor evaluate the consumer’s circumstances and make a recommendation to the court in terms of section 86(7); or |
| (b) | declare that the consumer is over-indebted, as determined in accordance with this Part, and make any order contemplated in section 87 to relieve the consumer’s over-indebtedness. |
| (c) | where the consumer may qualify for debt intervention, enquire whether the consumer wishes to participate in debt intervention and if the consumer confirms— |
| (i) | refer the matter to the National Credit Regulator for consideration; or |
| (ii) | where the court has sufficient information to do so, consider the matter and make an order contemplated in sections 87(1A) or 87A. |
[Section 85 substituted by section 11 of Notice No. 1081, GG 42649, dated 19 August 2019]
