What Is A Section 129 Letter
Let’s face it, we all get a little confused with all the legal talk when it comes to finances and managing debt. With the contracts, agreements and regulatory obligations, the language used gets a bit too much! In this article we will discuss what a Section 129 letter is and what the implications of receiving such a letter from your creditors means. We will also discuss options and solutions you might have at your disposal.
How does the Section 129 letter work?
A Section 129 letter is a formal document you could receive from a creditor, confirming that you are defaulting on your debt agreement that is in place. You have failed to make numerous debt payments and the letter is a final demand for you to make payments as stipulated in your debt agreement.
This is the final step a creditor will take prior to taking you to court. This is not a healthy relationship to have with your creditor that advanced you money. Depending on the court proceedings, your assets could be attached, resulting in you losing your personal belongings. You could even end up with more debt!
What is the next step?
When you receive a Section 129 letter, there are a few legally binding steps that you have to be aware off beforehand. According to the national credit act, before a creditor can proceed in taking you to court, you have the opportunity to respond and even rectify the situation.
You will have 10 working days to respond in. One option would be to personally make arrangements with your creditor to pay back the outstanding amount and any additional fees as per your agreement, or you could make use of an accredited Debt Solution company, as per the National Credit Regulatory Act.
We recommend that you contact an accredited debt counselling company like Cyber Finance to assist you in protecting your belongings from being repossessed, and making the required arrangements with your credit provider. At Cyber Finance we have years of combined experience dealing with creditors and can help you make the right arrangements that is best for you.
The best is to not fall behind on your debts at all. But we are only human and there is a solution for the situation you are facing. You don’t need to be stressed and dread receiving calls from your creditors, demanding payments.
All you need to do is contact us for an obligation free assessment. We will then be able to help you make an informed decision that best suits your situation and needs. A Section 129 letter is not the final step for you! Why not make the right decision now and let us help you become debt free?