1.I have two questions? I had a business which was severely in debt. All my creditors knew my position and were bearing with me. Some of them summoned me and arrangements were made with the lawyers to pay. After paying the amount owing ,the interest and lawyer fees just dont seem to end, continious charges such as late payments, commission on collections, sherriff’s costs, etc etc. In most cases the balance owing is almost the same as the original capital amount after paying the capital. Am I still responsible for the payments to my creditor even though he may have not received all the money since the lawyers would first deduct their fees?
2. My biggest creditors (a muslim firm) was owed R580 000. I was 7 months in arrears. They were not prepard to listen to my stories or wait anymore and they send the sherriff to close me down. The sherriff shut the doors and we had to leave the shop immediatly. In the meantime I collapsed financially and lost everything. All the goods in the shop will be auctioned soon and we are told that we will be lucky to get R200 000.00 for all the stock, fixture & fittings etc. The trade value of the stock was about approx: R500 000. and fixture & fittings about R100 000. The value of the business was about R1 million if I sold it lot stock & barrel.
A) What is my obligation to this creditor? He probaly will get R100 000 (if lucky) from the proceeds of the auction.
B) Now I still have all these other creditors to pay (although I have been sequestrated and the accounts have been written off) islamically & morally but right now there is no way forward. If the above creditor allowed me to continue to trade and did not shut me down then inshallah I had full confidence that I was going to be able to pay them in full eventually and all my other creditors would have also got paid. I agree that this would have taken much time but they would have got paid. Does the above creditor bear any responsibility and if yes then what is his responsibility?
Maaf for the long question but I needed to give you a brief history.