What does a debt & credit attorney cost in South Africa?

There is no fixed tariff for debt and credit work. What you pay depends on whether the matter stays out of court, which court it goes to, whether the other side opposes you, and how much of the work you are able to do yourself. The ranges above are typical, exclude VAT, and exclude the sheriff's fees, court fees and disbursements that get added on top.

What actually drives the bill

Whether the matter goes to court. A letter from an attorney to a collector, or a written demand for a proper statement of account, is a few thousand rands at most. The moment papers are drafted, filed and argued, the cost multiplies.

Whether the other side opposes. An unopposed rescission application is a fraction of the cost of one that a bank fights. Ask your attorney for a range and for what pushes you to the top of it.

How urgent it is. An urgent application, for example to get back a vehicle taken without a court order, costs more because the work is compressed into days.

How much you bring to the first meeting. Attorneys charge for time. If you arrive with your credit report, the summons, your bank statements showing the last payment date, and a list of your accounts, you cut the hours spent reconstructing your own file.

What you should never have to pay for

A surprising amount of debt and credit help is free.

• Your credit report. You are entitled to a free report from each registered credit bureau once a year, and disputing a wrong listing costs nothing. See our guide on disputing a listing on your credit report.
• The National Credit Regulator, 0860 627 627, which supervises credit providers, credit bureaus and debt counsellors and takes complaints at no charge.
• The Credit Ombud, now part of the National Financial Ombud Scheme South Africa, which resolves credit disputes free of charge.
• The National Consumer Tribunal, which hears certain matters under the National Credit Act 34 of 2005.
• The Council for Debt Collectors, which regulates registered debt collectors.
• Legal Aid South Africa, 0800 110 110. Our legal aid page explains who qualifies.
• University law clinics in most major centres, which take consumer debt matters for free.
• The Small Claims Court, for claims up to R20 000, where no attorney is allowed.
• The clerk of the civil court, who can explain which forms to use, although the clerk cannot give legal advice.

If a business asks for a large upfront fee to "clear your name" or "remove a debt review", check first whether the same outcome is available free.

Debt counsellor fees are different from attorney fees

A debt counsellor is not an attorney. Debt counsellor fees are regulated under the National Credit Act and are typically structured as an application fee, a restructuring fee calculated from your instalment, and a monthly aftercare fee that continues for as long as you remain under review. Those fees come out of the monthly payment you make, so the amount reaching your credit providers is less than what you pay in.

Two questions to ask any counsellor before you sign: what is the full fee schedule in writing, and are you registered with the National Credit Regulator?

Sequestration is the expensive one

Voluntary surrender of your estate under the Insolvency Act 24 of 1936 is a High Court application. It normally needs an attorney and counsel, requires publication in the Government Gazette and a newspaper, and involves a trustee whose costs come out of the estate. The money generally has to be found up front, which is the paradox many people run into: the process that ends unpayable debt costs the most to start. Our comparison of debt review and sequestration sets out when each makes sense.

How to avoid nasty surprises

1. Ask for a written fee estimate before you instruct anyone, and ask what is included and what is billed separately.
2. Ask for the basis of charging. Hourly, fixed fee per stage, or a fixed fee for the whole matter. Fixed fees per stage give you the most control.
3. Ask about disbursements. Sheriff's fees, court filing fees, courier costs and advocate's fees are usually charged on top of the attorney's own fee.
4. Ask for interim invoices. Monthly billing lets you change course before costs run away.
5. Ask whether costs can be recovered. If you win, a court may order the other side to pay a contribution to your costs, but that is usually less than what you paid your own attorney.
6. Check the fee agreement. You are entitled to a written cost estimate, and you can query an attorney's bill through the Legal Practice Council.

Costs and tariffs change. Treat every figure here as a starting point, not a quote.