Rectifying an unconstitutional dispensation? A consideration of proposed reforms relating to no income no asset debtors in South Africa

Abstract

AbstractThe South African natural person debt relief system remains heavily procreditor and consequently excludes many deserving debtors from any form of relief. This is despite the fact that such marginalisation amounts to unjustifiable, unfair discrimination on the basis of debtors' financial status. The main aim of this article is to establish whether proposed reforms, and specifically the debt intervention procedure, will rectify the current unconstitutional dispensation and particularly the unreasonable unfair discrimination against “no income no asset” (NINA) debtors, who undoubtedly constitutes the largest part of relegated debtors. The article may benefit developing countries seeking to introduce debt relief measures curtailed to the needs of their ever‐escalating NINA debtors.