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Can a business be placed under debt review?

Questions & AnswersCan a business be placed under debt review?
Anonymous asked 4 years ago

Can a business that is a Close Corporation be placed under debt review?

1 Answers
Matthys Potgieter Staff answered 4 years ago

Hi there

The National Credit Act makes differentiation between “juristic” and “non-juristic” persons. A juristic person would be something like a CC or a Pty(Ltd) company. Anything that is not an individual person with a green South African ID would be classified as being a juristic person.

The Act then further states that a juristic person cannot be placed under debt review. It mentions this explicitly and thus there are no way to get past it.

The closest thing to a company that can be placed under debt review is a trust, provided that the trust only has 3 or less trustees.

Hope that answered your question.

Kind Regards