The implications of debt review, administration orders and insolvency on the debtor’s status and contractual capacity

Although, it is always strongly recommended that personal finances are managed in such a way that consumers never find themselves in a position where they have to consult with a professional, these unfavourable situations often arise, whether due to the debtor’s failure to plan sufficiently or otherwise. It is therefore of the utmost importance, that consumers (debtors) are fully aware of the legal consequences of their over-indebtedness; whether the result thereof manifests through either debt review proceedings, administration orders or even (ultimately) insolvency.

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