Glossary

Glossary of debt collection terms

The vocabulary of recovery and collections, explained clearly — for credit teams, collectors and the attorneys who work with them.

Acceleration Clause: A clause in a credit or loan agreement that entitles a creditor to demand immediate repayment of the full outstanding balance if the debtor defaults on any payment or breaches the agreement.In simple termsIf you miss a payment, the lender can ask you to pay back everything you still owe right away.
Account Stated: A claim in which a creditor has rendered a statement of account to a debtor, and the debtor has not objected within a reasonable period, resulting in the balance being treated as accepted.In simple termsWhen you get a statement showing what you owe and you don’t dispute it, the amount becomes accepted as correct.
Acknowledgement of Debt (AOD): A written and signed document in which a debtor admits owing a specific amount to a creditor, often setting out repayment terms or security provided.In simple termsA signed document where someone agrees that they owe money and promises to pay it back.
Adjudication: A formal decision or determination by a court or authorised body concerning a dispute or claim.In simple termsA legal decision made by a judge or official to settle a dispute.
Administration Order: An order granted under section 74 of the Magistrates’ Courts Act 32 of 1944 that appoints an administrator to collect and distribute a portion of the debtor’s income among creditors.In simple termsA court order that helps someone who owes money to pay it off slowly through a court-appointed person.
Affidavit: A written statement made under oath before a Commissioner of Oaths, used as evidence in legal proceedings.In simple termsA sworn written statement confirming something is true.
Agent: A person authorised to act on behalf of another (the principal) in a legal or business matter.In simple termsSomeone who is allowed to act or make decisions for someone else.
Application: A formal written request to a court for relief, brought by way of motion proceedings supported by affidavits.In simple termsA written request asking a court to make a decision without a full trial.
Arrear: An amount that is overdue or unpaid in terms of an agreement or court order.In simple termsA payment that is late or still outstanding.
Attachment: The lawful seizure of a debtor’s property by the Sheriff of the Court in order to sell it and pay off a judgment debt.In simple termsWhen the sheriff takes a debtor’s property to sell it and pay the money owed.

Breach of Contract: Failure by one party to perform their duties under an agreement, such as not making payment or delivering goods as promised.In simple termsWhen someone breaks the terms of an agreement.
Business Rescue: A statutory process under Chapter 6 of the Companies Act 71 of 2008 allowing a financially distressed company to reorganise its affairs while protected from creditor claims.In simple termsWhen a struggling company gets time to fix its finances instead of closing down immediately.
By Agreement: A mutual understanding or arrangement between parties regarding how a debt or dispute will be handled.In simple termsWhen both sides agree on how to deal with something, like paying or settling a debt.

Cession: The transfer of a right or claim from one party (the cedent) to another (the cessionary), commonly used when selling or assigning debts.In simple termsWhen one person hands over their right to collect a debt to someone else.
Claim: A right to payment of money or damages owed by one person to another.In simple termsA demand or request for payment of money that’s owed.
Collateral Security: Property or assets given as security to ensure repayment of a debt or performance of an obligation.In simple termsSomething of value you offer to make sure you’ll repay a debt.
Collection Commission: A fee charged by a collection attorney or agent for collecting money on behalf of a client, regulated under Rule 67 of the Magistrates’ Court Rules.In simple termsThe fee a debt collector or attorney earns for getting money back from a debtor.
Compromise: An agreement between a debtor and creditor (or company and creditors under section 155 of the Companies Act 71 of 2008) to accept reduced payment or new terms in full settlement of a debt.In simple termsWhen a creditor agrees to take less money or new terms to settle a debt.
Consent to Judgment: A written admission of liability and permission for a court to enter judgment without a full hearing, as provided under section 58 of the Magistrates’ Courts Act 32 of 1944.In simple termsWhen a debtor agrees in writing that the court can issue judgment against them without a trial.
Contract: A legally binding agreement creating rights and obligations between parties.In simple termsA formal or written deal that both sides must keep.
Credit Agreement: An agreement as defined in the National Credit Act 34 of 2005, where payment is deferred and interest or fees are charged.In simple termsA deal where you buy something or borrow money now and agree to pay it off later, with interest.
Credit Bureau: An organisation registered with the National Credit Regulator (NCR) that collects and maintains consumer credit information and reports it to credit providers.In simple termsA company that keeps records of people’s credit history for banks and lenders.
Credit Life Insurance: Insurance that pays a credit provider if the borrower dies, becomes disabled, or loses their job, as permitted under section 106 of the NCA.In simple termsInsurance that covers your debt if you die, get injured, or lose your income.
Credit Provider: A person or company that supplies goods, services, or money on credit, as defined in section 1 of the National Credit Act 34 of 2005.In simple termsA business or person who lends money or allows you to buy now and pay later.
Creditor: A person or entity to whom a debt is owed.In simple termsSomeone who is owed money.
Cure of Default: The process by which a debtor catches up on missed payments and restores an agreement under section 129(3) of the NCA.In simple termsWhen you fix your missed payments so your credit agreement goes back to normal.

Debt: A monetary obligation due by one person or entity (the debtor) to another (the creditor), whether arising from contract, delict, statute, or judgment.In simple termsMoney that someone owes another person or company.
Debt Counselling: A statutory process under section 86 of the National Credit Act 34 of 2005 (NCA) in which an over-indebted consumer applies to a registered debt counsellor for assessment and restructuring of obligations.In simple termsA legal process that helps people who are over their heads in debt to make affordable payment plans.
Debtor: A natural or juristic person who owes a debt to another.In simple termsA person or business that owes money.
Default: The failure of a debtor to perform an obligation under an agreement, including missing or late payments.In simple termsWhen someone doesn’t pay or do what they promised under an agreement.
Demand Letter / Letter of Demand: A formal written demand addressed to a debtor requiring payment of an outstanding debt within a stated period, as contemplated in section 56 of the Magistrates’ Courts Act 32 of 1944.In simple termsA written notice telling someone they must pay what they owe within a set time.
Deposit: A sum of money paid as part of a contract, usually as a first payment or as security for performance.In simple termsThe first payment or money put down to show commitment to a deal.
Discharge of Debt: The release of a debtor from liability for a debt through payment, compromise, prescription, or operation of law.In simple termsWhen the debt is settled or no longer needs to be paid.
Discovery: A pre-trial procedure allowing parties to exchange documents and information relevant to a case, as provided in Rule 23 of the Magistrates’ Court Rules and Rule 35 of the Uniform Rules of Court.In simple termsWhen both sides in a court case must share the documents and evidence they plan to use.
Distribution: The allocation and payment of funds to creditors by a trustee, liquidator, or administrator, according to the Insolvency Act 24 of 1936 or Companies Act 71 of 2008.In simple termsThe way money is divided and paid out to people who are owed after someone goes bankrupt or a company is closed.
Dividends to Creditors: Pro-rata payments made to creditors from the realised assets of an insolvent or liquidated estate after administration costs are deducted.In simple termsEach creditor gets a fair share of whatever money is recovered from selling off the debtor’s property.

Emoluments Attachment Order (EAO): An order issued under section 65J of the Magistrates’ Courts Act 32 of 1944 directing an employer to deduct money from an employee’s salary and pay it to the creditor.In simple termsA court order telling your employer to take money from your paycheck and send it to the person or company you owe.
Endorsement: A note or signature placed on a document, like a cheque, showing ownership transfer or confirming information.In simple termsSigning or stamping something to make it official or to transfer it to someone else.
Enforcement Action: Any legal process taken by a creditor to recover a debt, such as issuing summons or applying for judgment.In simple termsWhen a creditor takes legal steps to make sure they get paid.
Equitable Set-Off: A common-law rule allowing mutual debts between two people to cancel each other out up to the smaller amount.In simple termsWhen two people owe each other money, and the smaller debt is deducted from the bigger one.
Ex Parte Application: A court application brought by one party without notifying the other side, usually in urgent cases or where notice would defeat the purpose.In simple termsGoing to court urgently without warning the other side first.
Execution: The legal process of enforcing a court judgment, often by attaching and selling a debtor’s property through the Sheriff of the Court, under Rule 36 of the Magistrates’ Court Rules or Rule 45 of the Uniform Rules of Court.In simple termsThe stage where a sheriff sells a debtor’s belongings to pay off a court judgment.
Exemption: A legal protection that excludes certain assets from being taken to satisfy a judgment debt, as set out in section 67 of the Magistrates’ Courts Act 32 of 1944.In simple termsProperty or items the law says can’t be taken away to pay a debt — like basic household goods.

Facilitation Fee: A fee payable to an intermediary or agent who helps collect or arrange repayment of a debt, governed by the Debt Collectors Act 114 of 1998.In simple termsA service fee charged for helping to get a debt paid.
Final Demand: A last written demand before legal action is taken, warning the debtor that court proceedings will follow if payment is not made.In simple termsThe last letter or warning before the creditor takes you to court.
Financial Distress: A situation where a company cannot pay its debts as they become due, which can lead to Business Rescue under the Companies Act 71 of 2008.In simple termsWhen a business is struggling to pay its bills and might need help to avoid going under.
Fixed Property: Immovable property such as land or buildings that may be attached and sold to satisfy a debt.In simple termsLand or buildings that can be sold if someone doesn’t pay what they owe.
Formal Notice: A legally required written notice informing someone of a legal action or process.In simple termsAn official letter or document telling someone that legal action is happening or planned.
Fraudulent Conveyance / Disposition: A transfer of property made to hide assets or cheat creditors, voidable under section 26 of the Insolvency Act 24 of 1936.In simple termsWhen someone gives away property to avoid it being taken to pay their debts.
Full and Final Settlement: A payment or agreement accepted by a creditor as complete satisfaction of the debt.In simple termsPaying an agreed amount so that the rest of the debt is written off and you don’t owe anything more.

Garnishee Order: An order granted under section 72 of the Magistrates’ Courts Act 32 of 1944 authorising the attachment of money owed by a third party to the judgment debtor, directing that it be paid to the creditor.In simple termsA court order that tells someone who owes the debtor money (like a client) to pay that money directly to the creditor instead.
Good Faith (Bona Fides): Conduct characterised by honesty and fairness in contractual and debt-collection dealings, as recognised in South African common law and section 3 of the National Credit Act 34 of 2005 (NCA).In simple termsActing honestly and fairly when you make agreements or collect money.
Goods Sold and Delivered: A cause of action arising when a seller delivers goods to a buyer but is not paid in full for them.In simple termsWhen goods have been given to the buyer but the payment hasn’t been made.
Guarantee / Suretyship: A written promise by one person (the surety) to be responsible for another’s debt if that person does not pay, governed by the General Law Amendment Act 50 of 1956.In simple termsWhen someone signs a promise to pay another person’s debt if they don’t.
Guarantor / Surety: The person who signs a suretyship agreement, thereby accepting legal responsibility for the debt if the borrower defaults.In simple termsThe person who promises to cover someone else’s loan if they can’t pay.

Hearing: A formal session before a magistrate or judge where evidence and arguments are presented.In simple termsWhen a case is heard in court and both sides can speak or give evidence.
Hypothec: A creditor’s right to hold a debtor’s property as security for payment of a debt, such as a landlord’s tacit hypothec over a tenant’s movables.In simple termsA legal right allowing someone to keep another person’s property until they pay what they owe.

Immovable Property: Land or buildings that may be attached and sold in execution to satisfy a debt, as governed by Rule 43 of the Magistrates’ Court Rules or Rule 46 of the Uniform Rules of Court.In simple termsLand or a house that can be sold by court order to recover a debt.
In Duplum Rule: A rule in section 103(5) of the National Credit Act 34 of 2005 that limits the total amount of interest and fees that can accumulate on a debt to the same amount as the unpaid principal.In simple termsInterest and fees can’t grow to be more than the amount you originally owed.
Indulgence: Leniency shown by a creditor to a debtor, such as allowing extra time to pay, without giving up legal rights.In simple termsWhen a creditor gives you a bit of grace or time to pay without losing their right to collect later.
Insolvency: The condition of being unable to pay debts as they fall due, regulated by the Insolvency Act 24 of 1936 for individuals and the Companies Act 71 of 2008 for companies.In simple termsWhen a person or business can’t pay what they owe when payments are due.
Interest: A charge for using borrowed money, calculated as agreed in a contract or prescribed by regulation 42 of the NCA.In simple termsThe extra money you pay for borrowing money.
Interpleader Proceedings: A procedure under Rule 44 of the Magistrates’ Court Rules or Rule 58 of the Uniform Rules of Court where a third party claims ownership of property attached in execution.In simple termsWhen someone else says that property taken by the sheriff actually belongs to them, not the debtor.
Interrogatories / Examination of Debtor: A post-judgment process where a debtor is questioned about income, assets, and financial position under section 65A of the Magistrates’ Courts Act 32 of 1944.In simple termsWhen someone who owes money is asked in court about their income and what they own to see how they can pay.
Irregular Proceeding: A court process that doesn’t follow proper legal rules and can be set aside on application under Rule 60 of the Magistrates’ Court Rules.In simple termsA legal step taken the wrong way that can be cancelled by the court.

Judgment: A final court decision that determines liability and orders payment of a specific amount.In simple termsWhen a court officially decides who must pay and how much.
Judgment Creditor: The person or entity in whose favour a judgment has been given.In simple termsThe person who won the case and is owed money by court order.
Judgment Debtor: The person or company against whom a judgment has been given, ordering them to pay.In simple termsThe person or business who lost the case and must pay the money decided by the court.
Jurisdiction: The legal authority of a court to hear a matter, determined by law and the amount or location of the dispute, under sections 28 and 45 of the Magistrates’ Courts Act 32 of 1944.In simple termsWhich court is allowed to deal with a case, based on the amount involved or where it happened.

Knowledge of Debt: Awareness by the creditor of the existence of a debt, relevant to when prescription (expiry of the right to claim) begins under section 12 of the Prescription Act 68 of 1969.In simple termsThe time the creditor first knew the debt existed, which affects when the claim expires.

Lease Agreement: A contract under which one party (the lessor) lets property to another (the lessee) for temporary use in return for rent, governed by common law and, where applicable, the National Credit Act 34 of 2005.In simple termsA written rental agreement for property, like a flat or office.
Legal Costs: The fees and expenses recoverable by a successful party in legal proceedings, including attorney and court costs, as set out in Rule 33 of the Magistrates’ Court Rules and Rule 70 of the Uniform Rules of Court.In simple termsThe lawyer and court fees you might have to pay if you lose a case.
Legal Notice: A document required by law to inform someone of legal action or a decision, such as a section 129 notice under the NCA.In simple termsAn official letter telling someone that a legal action has started or will start soon.
Liquidation: The process of closing down a company and selling its assets to pay off debts, under the Companies Act 71 of 2008 or the Close Corporations Act 69 of 1984.In simple termsWhen a business is shut down and everything it owns is sold to pay creditors.
Litigation: The process of taking legal action or being involved in a lawsuit.In simple termsThe process of going to court to settle a dispute.

Magistrates’ Court: A lower court established under the Magistrates’ Courts Act 32 of 1944, with jurisdiction over most civil matters involving smaller claims and local disputes.In simple termsThe local court where most everyday debt cases are heard.
Mediation: A voluntary process in which an independent person (the mediator) helps parties reach an agreement without going to trial, as encouraged under Rule 25 of the Uniform Rules of Court.In simple termsWhen a neutral person helps two sides talk and agree instead of going to court.
Money Judgment: A court order requiring the payment of a specific sum of money.In simple termsWhen a court says you must pay someone a set amount of money.
Mortgage Bond: A registered document giving a creditor security over immovable property, such as land or a house, under the Deeds Registries Act 47 of 1937.In simple termsA home loan agreement that lets the bank take your property if you don’t repay.
Movable Property: All property that can be moved, including vehicles, furniture, or equipment, which may be attached and sold to satisfy a debt.In simple termsThings like furniture, cars, or machines that can be taken and sold to repay a debt.

National Credit Regulator (NCR): The regulatory authority created under section 12 of the National Credit Act 34 of 2005, responsible for overseeing credit providers, debt counsellors, and credit bureaus.In simple termsThe government body that makes sure lenders and debt collectors follow the credit laws.
Negligence: Failure to exercise reasonable care or caution, resulting in harm or loss to another person.In simple termsWhen someone is careless and causes damage or loss.
Negotiable Instrument: A written document, like a cheque or promissory note, that guarantees payment and can be transferred to another party.In simple termsA signed paper, such as a cheque, that promises someone will be paid and can be passed to others.
Notice of Bar: A formal notice issued under Rule 12 of the Magistrates’ Court Rules calling upon a defendant to file a plea or defence within a set time, failing which they lose the right to do so.In simple termsA court warning giving someone a deadline to respond, or they lose their chance to defend the case.
Notice of Motion: A document initiating application proceedings in court, supported by affidavits stating the relief sought.In simple termsA written application asking a court to make a decision without a full trial.
Nulla Bona Return: A report filed by the Sheriff of the Court stating that the debtor has no attachable assets to satisfy a judgment.In simple termsA sheriff’s report that the debtor owns nothing worth taking to pay the debt.

Obligation: A legal duty to perform or refrain from an act, often to pay money or deliver goods or services.In simple termsA promise or duty under the law to do something, like pay or deliver.
Open Account: An ongoing credit arrangement where goods or services are supplied and paid for over time.In simple termsA running account where a customer keeps buying on credit and pays later.
Order of Court: A formal directive issued by a court that must be followed by the parties.In simple termsAn official instruction from the court that everyone involved must obey.
Over-Indebtedness: A situation defined in section 79 of the National Credit Act 34 of 2005, where a consumer cannot meet all their credit obligations as they become due.In simple termsWhen you have too much debt and can’t keep up with your payments.
Overdraft: A facility allowing a bank account holder to withdraw more money than is available, subject to agreed limits and terms under the Banks Act 94 of 1990.In simple termsWhen your bank lets you spend more money than you actually have in your account.

Particulars of Claim: A legal pleading that sets out the material facts on which a claim is based, in accordance with Rule 6 of the Magistrates’ Court Rules.In simple termsThe written document explaining exactly why someone is being sued and for how much.
Party and Party Costs: Legal costs recoverable by the successful party in litigation, based on the prescribed tariff, excluding attorney–client fees unless ordered otherwise.In simple termsStandard court costs that the losing side must pay to the winner.
Payment Arrangement: An agreement between a debtor and creditor setting out new or adjusted payment terms for a debt.In simple termsA deal to pay off what you owe in smaller or delayed instalments.
Payment in Full: A payment accepted by a creditor as total settlement of a debt.In simple termsPaying an agreed amount so you owe nothing more.
Peremption: The loss of a right to appeal when a party accepts or acts on a court’s judgment.In simple termsYou can’t appeal if you act as though you’ve accepted the court’s decision.
Personal Service: Delivery of legal documents directly to the person involved, as required under Rule 9 of the Magistrates’ Court Rules.In simple termsWhen the sheriff or messenger hands legal papers to you in person.
Plea: A formal response to a summons in which the defendant admits, denies, or explains the claim.In simple termsThe written answer explaining why you disagree with what’s being claimed against you.
Pleadings: All formal written documents exchanged in a lawsuit that set out the parties’ claims and defences.In simple termsThe written back-and-forth documents in a court case showing each side’s arguments.
Possession: Physical control or occupation of property, whether or not ownership exists.In simple termsHaving something in your control or keeping it with you, even if you don’t own it.
Prescribed Debt: A debt that can no longer be enforced because the time limit for collection has expired under the Prescription Act 68 of 1969.In simple termsA debt that’s expired — the creditor can’t legally demand payment anymore.
Prescription: The extinguishing of a debt after the period set by the Prescription Act 68 of 1969, generally three years for ordinary debts.In simple termsWhen a debt becomes too old to collect legally because too much time has passed.
Principal Debt: The original amount owed, excluding interest and charges.In simple termsThe main sum of money you borrowed or agreed to pay back, not counting interest.
Provisional Sentence: A court procedure under Rule 14 of the Uniform Rules of Court that allows a creditor with a liquid document (like a signed acknowledgment of debt) to get fast judgment unless the debtor provides security.In simple termsA quick court process to collect money if you’ve got written proof that someone owes you.

Quantum: The amount of money claimed or awarded in a lawsuit.In simple termsThe total value or amount being claimed in court.

Receipt: A written acknowledgment of payment received from a debtor.In simple termsProof that you’ve paid money to someone.
Reckless Credit: Credit granted without properly checking affordability, in breach of sections 80 and 81 of the National Credit Act 34 of 2005.In simple termsWhen a lender gives someone a loan even though they clearly can’t afford to pay it back.
Redemption: The act of paying off a debt in full or reclaiming property held as security.In simple termsPaying back what you owe to get your goods or property back.
Rehabilitation: The legal process under section 124 of the Insolvency Act 24 of 1936 by which a person whose estate has been sequestrated is released from insolvency and regains full legal capacity.In simple termsWhen someone who was declared insolvent is cleared and allowed to start fresh financially.
Remedy: A means provided by law to enforce a right or correct a wrong, including damages or restitution.In simple termsThe legal fix or solution when your rights have been violated.
Remittances: Payments sent by a debtor or agent to a creditor as settlement or instalment of a debt.In simple termsMoney you send to the person or company you owe.
Reply / Replication: A legal document filed by a plaintiff responding to a defendant’s plea under Rule 18(5) of the Uniform Rules of Court.In simple termsThe next step in a case where the person suing replies to the defence.
Rescission of Judgment: An application made to set aside a judgment granted by default or in error, provided under Rule 49 of the Magistrates’ Court Rules and Rule 42 of the Uniform Rules of Court.In simple termsAsking the court to cancel or undo a judgment made without your input or by mistake.
Retention of Title: A clause in a sale agreement allowing the seller to keep ownership of goods until full payment is made.In simple termsThe seller still owns the goods until they’re paid for in full.
Return of Service: A written report by the Sheriff of the Court confirming that a summons, warrant, or notice was properly served.In simple termsA note from the sheriff saying that legal papers were delivered as required.

Sale in Execution: The public auction conducted by the Sheriff of the Court to sell movable or immovable property attached in execution of a judgment debt, under Rule 43 or Rule 45 of the Magistrates’ Court Rules or Rule 46 of the Uniform Rules of Court.In simple termsWhen the sheriff sells a debtor’s belongings at an auction to pay what they owe after a court order.
Satisfaction of Judgment: The full payment or performance of a judgment debt, discharging the debtor’s obligation.In simple termsWhen the debtor pays or does everything required by the court order, so the debt is cleared.
Sequestration: A legal process under the Insolvency Act 24 of 1936 where a person’s estate is placed under administration for the benefit of creditors, usually when they cannot pay their debts.In simple termsWhen someone is declared insolvent and their property is sold to pay what they owe.
Service of Process: The formal delivery of court papers to a party in accordance with the Magistrates’ Court Rules or Uniform Rules of Court, usually carried out by the Sheriff of the Court.In simple termsWhen official legal documents are handed to the people involved in a case so they know about it.
Settlement: An agreement reached between parties to resolve a claim or dispute, sometimes made an order of court.In simple termsWhen both sides agree on how to end a legal dispute, usually by payment or compromise.
Sheriff of the Court: An officer appointed under the Sheriffs Act 90 of 1986 who serves legal documents, executes court orders, and conducts sales in execution.In simple termsThe person who delivers court papers and sells property to recover unpaid debts.
Simulated Transaction: A transaction designed to hide its true purpose, which may be set aside under section 31 of the Insolvency Act 24 of 1936 if it prejudices creditors.In simple termsA fake or misleading deal used to hide assets or avoid paying debts.
Small Claims Court: A court created under the Small Claims Courts Act 61 of 1984 to handle simple civil disputes up to R20,000 without the need for lawyers.In simple termsA low-cost court where people can sort out small money disputes without using attorneys.
Solvent: A condition where a person or business can pay debts as they become due and assets exceed liabilities.In simple termsWhen you have more money or assets than debts and can pay your bills.
Statement of Account: A periodic summary of amounts owed and payments made under a credit agreement, required by section 107 of the National Credit Act 34 of 2005.In simple termsA statement showing what you owe, what you’ve paid, and what’s still outstanding.
Statutory Demand: A written demand for payment that can precede sequestration or liquidation proceedings if unpaid.In simple termsA formal letter demanding payment before starting bankruptcy or liquidation steps.
Subrogation: The legal substitution of one party for another in pursuing a claim, commonly used in insurance law.In simple termsWhen someone (like an insurer) takes over your right to claim money from another person.
Summons: A legal document starting a court case, calling on the defendant to appear or respond, issued under Rule 5 of the Magistrates’ Court Rules or Rule 17 of the Uniform Rules of Court.In simple termsThe official notice that you are being taken to court and must respond.
Suretyship: A contract in which one person undertakes to be responsible for another’s debt if that person fails to pay, under the General Law Amendment Act 50 of 1956.In simple termsWhen you agree to guarantee someone else’s debt if they don’t pay it themselves.

Tender: An unconditional offer to pay or perform an obligation. A valid tender can stop further interest from accruing.In simple termsWhen you offer to pay or do what you owe, even if the other person doesn’t accept it yet.
Termination Notice: A notice issued under section 123 of the National Credit Act 34 of 2005 to end a credit agreement after default, following proper notice under section 129.In simple termsA letter from a lender ending your credit agreement because you didn’t pay as agreed.
Title Deed: A registered document showing ownership of immovable property under the Deeds Registries Act 47 of 1937.In simple termsThe official paper that proves who owns land or a house.
Tracing: The process of locating a debtor or their assets, carried out in compliance with the Debt Collectors Act 114 of 1998 and the Protection of Personal Information Act 4 of 2013 (POPIA).In simple termsFinding a person or their property so that they can be contacted or their debt recovered.
Trust Account: A special account used by attorneys or debt collectors to hold clients’ funds, as required by the Legal Practice Act 28 of 2014 and Debt Collectors Act 114 of 1998.In simple termsA safe bank account where client money is kept separate from business money.
Trustee: A person appointed under the Insolvency Act 24 of 1936 to take control of an insolvent estate and distribute its assets among creditors.In simple termsThe person who manages and sells an insolvent person’s property to pay their creditors.

Unlawful Agreement: A contract that is void because it breaks the law, such as a credit agreement made without registration under section 40 of the National Credit Act 34 of 2005.In simple termsA deal that’s not valid because it goes against the law.
Unsecured Debt: A debt not backed by specific collateral or security, leaving the creditor to rely only on the debtor’s general assets.In simple termsMoney owed that isn’t tied to any property or security, like a personal loan.
Urgent Application: A court application made under Rule 55 of the Magistrates’ Court Rules or Rule 6(12) of the Uniform Rules of Court for immediate relief where delay would cause harm.In simple termsGoing to court quickly because waiting would make the problem worse.

Valuation: An assessment of the worth of property, usually before sale in execution.In simple termsChecking how much property or goods are worth before selling them.
Variation Order: A court order changing or correcting an earlier order, under Rule 49 of the Magistrates’ Court Rules or Rule 42 of the Uniform Rules of Court.In simple termsWhen a court changes or fixes an earlier decision.
Vendor: A person or business selling goods or services, often on credit.In simple termsThe seller or supplier in a transaction.
Voidable Transaction: A deal that can be cancelled by a court because it was done unfairly or to cheat creditors, under sections 26–31 of the Insolvency Act 24 of 1936.In simple termsA transaction that the court can cancel because it wasn’t fair or honest.

Waiver: The voluntary giving up of a legal right, which must be clear and intentional.In simple termsWhen someone chooses to give up a right they could have used.
Warrant of Execution: An order authorising the Sheriff of the Court to attach and sell a debtor’s property to satisfy a judgment, under Rule 36 of the Magistrates’ Court Rules.In simple termsA court paper allowing the sheriff to take and sell a debtor’s property to pay a debt.
Without Prejudice: A phrase used to protect settlement discussions so that statements made can’t be used in court later.In simple termsIt means what’s said in settlement talks can’t be used against you in court.
Witness Statement: A written record of what a witness will say in court, allowed as evidence under the rules of court.In simple termsA written version of what someone saw or knows about a case.
Writ of Attachment: An order directing the Sheriff of the Court to attach property for sale in execution of a judgment.In simple termsAnother term for a court order letting the sheriff take property to recover money owed.

X-Reference (Cross-Reference): A reference in legal documents directing the reader to another related section or definition.In simple termsA note in a document telling you to look somewhere else for more information.

Yield: The financial return or income from an investment, used in assessing returns or interest.In simple termsThe profit or return you earn from an investment or loan.

Zero-Rated Transaction: A transaction that carries a 0% VAT rate under section 11 of the Value-Added Tax Act 89 of 1991, affecting recoverable amounts in debt enforcement.In simple termsA sale where VAT is charged at 0%, like some exports, meaning no tax is added.

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