Question:
My maid is almost R9000 in debt. Her boyfriend was to pay some of this debt but lost his job recently. Her monthly expenses outweigh even the lowest monthly payment. In July she was given a personal loan of almost R5000 to pay over two years at 43 percent interest. She will probably never be able to repay this debt and cannot afford a debt councillor.

How can I help her declare insolvency with minimal cost?

Answer:
The good news is that your maid can afford debt counselling as it only costs R50.

Applying for insolvency, however, is a much more costly affair. If you log onto the National Credit Regulator’s website, www.ncr.org.za, you will see a list of registered debt councillors in your area. If she goes the insolvency route then there is a distinct possibility that all of her assets, if she has any, will be attached and sold to pay back her creditors. If she has no assets then it could cost her as much as R7000 for an attorney to apply for the insolvency. She should go to legal aid to see what her options are.