Many people who go under debt counselling later report that they were shocked to discover the full legal consequences. Picture: 123RF/ANTONIO GUILLEMI’m a sole proprietor. If I were to go under debt counselling, what does it mean for my business? A debt counsellor told me that debt counselling is for natural people only. She said that when an individual goes under debt counselling, their commercial capabilities aren’t impaired in the way they are when you’re under debt administration.
It is concerning that a debt counsellor would give such advice, and this illustrates why many consumers who go under debt counselling later report that they are shocked to find out the full legal consequences. While it is correct that debt counselling is only an option available to natural people, there is in law no difference between a sole proprietor’s private and business identities. A sole proprietorship has no legal personality in which to access credit.
Limitations on the sole proprietor’s ability to gain access to credit will definitely affect their business, as they will also be unable to access credit in their capacity as a sole proprietor. They will need to seek a sponsor or surety who is able to secure credit on behalf of the business.
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Q&A: Can you access credit as a sole trader while under debt counselling?There is in law no difference between a sole proprietor’s private and business identities
Source: BDliveSA - 🏆 12. / 63 Read more »