# Regulatory Compliance Category > National Credit Act Forum >  Company debt counselling

## IanF

I need some advice I just got this on email




> To whom it may concern
> 
> Please note that Mrs S..... applied for debt counseling 10 August 2010.
> 
> The reason for this e-mail is because your company is not a credit provider and most the funds due to your company is owed by Mrs S....'s company xxxxx Training xxxxx. 
> 
> We would like to ask your company if we can add the arrears debt to a payment proposal. This will allow Mrs Sxxxx to re-pay all outstanding / arrears money off in instalments. Please just note that if Mrs Sxxxxx, from this date on continues to make use of your services that amount is still payable. We can only make arrangement for arrears fees.
> 
> The documentation will follow shortly.
> ...


My feeling is mixed as I saw a few weeks ago and she explained she is no longer actively running the company but may still have residual deals coming through. This is a hero to zero scenario. 
My thoughts are if they want printing then it is 2x upfront payment with the order with 1x going to pay old debt.

I don't think there is money there as she has gone from a house on the vaal to a rented house. 

What happens if I accept this can I still get more money from her with print orders or must I  just accept and get a small monthly payout, as handing it over will just throw good money after bad.

Any comments are welcome.

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## Dave A

I reckon accept the proposal and don't extend any further credit to her. The current debt will (hopefully) be chipped away, and anything new just do COD or _payment in full with order_ until all arrears are cleared.

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## IanF

I have accepted with the proviso that they pay at interest at my overdraft rate, lets see what happens.

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## Dave A

When I see things like this



> I don't think there is money there...


I've learnt to appreciate any reasonable chance of getting anything at all.

If the person doesn't bounce back, you haven't lost anything as you were on a hiding to nothing anyway. And if they do bounce back, they tend to appreciate that you gave them a fair chance to dig their way out of their hole.

Give her a hug the next time you see her and wish her well - try to lift her spirits. Last thing you want is for her to give up.

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AndyD (13-Aug-10), IanF (12-Aug-10), tonyflanigan (14-Aug-10), wynn (13-Aug-10)

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## BusFact

I second Dave's answer.

Any future business must also be strictly COD.

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## sterne.law@gmail.com

I think Dave is on the money. Acepting an offer does not alter your scenario in the negative. If there is no money your chances of collecting are slim and you will either have to write it off or persue the normal channels. Factor in that, like most debtors do, they get another supplier and then feel no pressure to pay you.
By accepting their offer or negotiating a similiar offer, not only will you be able to retain her business, should she bounce back, you also offer a lifeline to keep her going, which increases the chance of payment. Then because the payment is handled by an outside party, which means you needn't worry where you are on the list in the debtors mind, and any default on paymnets renders the agreement void and you in essence are closer to a judgement with no cost than you currently are.

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IanF (13-Aug-10)

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## IanF

I just received a notice that the debt review application was successful. 
Does anyone know what the timelines are for this, and what info I can request.
I have asked for the payment plan as it relates to us.
Also what fidelity insurance is in place for funds received and not paid to creditors.

Is this one of those things now that you just leave and wait and see if it works out or is it helpful to be more pro-active? :Confused:

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## Dave A

I'd go right back to them saying "Thanks for the notice and I look forward to getting the details."

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## Rebel

Hi, First thing to considder: If you add interest to your accounts then you might fall into incidental credit IF the business you sold the printing to is a consumer ito the definition ie Less than R1 mil turnover or asset value of less than R 1 mil. If so then you will be included in the debt review if not you can go for any assets she has

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## IanF

OK I got the schedule and they will pay off the debt over 61 months. Interest will be added at 6% PA from the second year. The payment will also escalate every year but there is no logic to it. They supplied a monthly income and expense statement which you could drive a truck through. I signed this and accepted it, (as I thought there is no profit in querying it)I have written off the debt so got the 14% VAT back.

Now she has ordered 1 manual from me and said she will pay cash so lets see. I still have copies of all her manuals on our computer I wonder what that is worth?

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