He says one of the most popular questions asked is the issue about people losing their jobs and being over-indebted. We receive numerous queries about people who lose their jobs and who are uncertain of what will happen to their debt – they are scared that they will lose everything.
When you are retrenched, you should immediately send a letter of confirmation of retrenchment written by your employer to the bank or credit provider to arrange an alternative repayment schedule.
Pay the credit provider as much as you can afford while looking for employment. A summons will only be served to you after a few months. After receiving a summons, it is vital not to miss the court appearance; when in court, you can explain the situation and ask the court to give you three to five months’ breathing space to find a job. A credit provider can’t repossess any assets without a court order.
He gives important advice on what a person can do when retrenched while struggling with debt.