New High Court rules that came into effect on August 22 will now change how debts are collected, especially when people’s homes and salaries are involved. 

Under the new law, a person’s home cannot be sold to recover a debt unless a court first holds a hearing. 

At the hearing, the court will look at the debtor’s financial situation and payment history before deciding whether selling the home is the only way to settle the debt or whether other options, such as a payment plan, are possible. 

Before a home is sold, it must be valued by two independent experts, and the selling price cannot be lower than the middle value of the two estimates. 

The rules also state that salaries can no longer be seized directly. 

Creditors must now apply to the court for a special order before part of someone’s income can be taken. 

In addition, new measures affect property auctions, allowing deputy sheriffs to demand deposits from bidders and banning remote bidding by phone or video. 

If a creditor does not take action within 90 days after winning a judgement, the case may be transferred to a magistrate’s court. 

According to the judiciary, the changes aim to improve the fairness of debt recovery while still enabling creditors to pursue their claims.