Paul recently published an article on the Esselaar Attorneys web site considering the plight of the over-indebted consumer who does not have enough funds to be declared insolvent. In essence – in an incredibly perverse manner – South African law does not allow a debtor to be declared insolvent unless he has enough money (called an ‘advantage to creditors’). Over time various other tools have been added to the debtor’s legal arsenal – such as debt review. However all of these have the flaw that they cannot help you at all if you have no assets and no way of making an income (in other words you are unemployed).
However there is a ray of sunlight. There is a good argument that this requirement that there must be an advantage to creditors would be declared unconstitutional and this argument is given weight by the fact that a Belgian court found exactly that in 2003.
If you would like to read the full article click here.