Debt Intervention as a Debt Relief Remedy

Abstract

There has been a shift in the approach taken to accommodate vulnerable debtors internationally from a heavily creditor-oriented approach to a more friendly system which aims to prioritise the needs of vulnerable debtors. The insolvency system of South Africa is still however heavily creditor-oriented. This research aims to examine the statutory debt relief measures available to debtors in South Africa. In addition, this research will examine the debt relief measures available to debtors in New Zealand, in particular the no asset procedure. This research will conclude by examining the debt intervention procedure introduced in the National Credit Amendment Act of 2019. A comparison of the debt relief measures in South Africa will be made to that in New Zealand and recommendations will be made on how to improve South Africa’s insolvency system to cater to vulnerable debtors.