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Voluntary Distribution

Personal service, professional outcomes.

What is voluntary distribution?

Voluntary distribution is the predecessor of modern-day debt review. It is the process by which you voluntarily elect to have a debt attorney step in to assess your situation, draw up a payment plan and negotiate reduced payment terms with your creditors on your behalf.

What does the process entail?

  • You complete an application form.
  • We compare your income and expenses, adjust your budget and determine an amount that you can comfortably pay to your creditors monthly.
  • We draw up a payment proposal and present it to your creditors for approval.
  • We handle the monthly payments to your creditors.
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Need to talk to us?
Call +27 (21) 949 2211 for advice on debt in Cape Town and rest of South Africa

Who will make the payment to my creditors?

We make the payments to your creditors on your behalf. You make one monthly payment to our trust account and we handle it from there.

What are the pros and cons of choosing voluntary distribution?

Pros: It is a simple, efficient process and our debt attorney will handle the negotiations with your creditors on your behalf.

Cons: Since the process is voluntary your creditors could choose to reject the offer for reduced instalments. However, this is very rarely the case.

Get in Touch

Need to talk to us?
Call +27 (21) 949 2211 for advice on debt in Cape Town and rest of South Africa

What does it cost and what will I get?

Our fee is equal to the distribution amount (with a cap of R6000). I.e. if we calculate that you can afford to pay R1000 towards your debts monthly, our fee will be R1000. There is also a monthly distribution fee, which is calculated at 12,5% of the total distribution amount (with a cap of R500).

This fee includes:

  • A detailed financial assessment
  • A payment plan
  • The drafting of letters to your creditors
  • The delivery of letters to your creditors
  • All on-going communication with your creditors on your behalf

How will I know that my creditors are receiving payment?

A proof of payment is saved to your file after each payment and can be provided at any time.

How can I check the balances of my debt?

We can request balances on your behalf if it becomes necessary.

Will I be listed on the ITC if I went under voluntary distribution?

No, a voluntary distribution itself is not listed on the ITC, but your creditors could elect to list you as a default payer since they will be receiving a reduced instalment.

Get Help You Need

Start now with a more efficient way to manage your debt
with debt companies in Cape Town - Libertine Consultants.