15 Sep

Can A Child’s Tertiary Education Be Included In Maintenance?

Education is considered a human right, just like food, shelter and social involvement. But what are the considerations regarding tertiary education and a child maintenance agreement? Is a parent whose duty is to pay regular maintenance also expected to pay for tertiary education?

A Shift In Duty 

When paying for a child’s tertiary education, it most likely means that the child has reached an age where he/she is considered an adult. As an 18-year-old, the child may be an adult, but is not yet considered self-supporting. When unable to look after themselves (due to financial constraints), it is the ultimately the child’s responsibility to claim maintenance from the parent in question. The spouse who may have had custody of the child is no longer expected to receive the money with regards to the wellbeing and support of the child.

Commitment To Education 

Although the child now receives maintenance from their parents toward living expenses and tertiary education, the parent is only expected to pay for the education as long as the parent has the financial means. Not only does the parent have responsibilities, but the child is expected to pass subjects at university. When he/she shows trends of failure or negligence, then it is no longer the parent’s responsibility to pay for tertiary education.

What Should You Pay For? 

It is parents’ duty to care for an adult child when they are unable to do so themselves. Children studying in a university are most often unable to provide for themselves, and therefore parents may have to fit the bill for tertiary fees, textbooks, food, accommodation, and transport.

A parent is no longer expected to provide maintenance for a child when the child is deemed at such an age and capacity to find a job for themselves, and therefore ensure their own livelihoods are taken care of.

For more information on child maintenance, child custody, and any other divorce or child-related legal query, contact Ivan Zartz Attorneys today!

 

05 Sep

Can Consumers Reinstate a Credit Agreement After Debt Acceleration?

A credit agreement is a contractual agreement between a credit provider and a consumer and applies for all kinds of credit services. Under the agreement, the consumer is liable to pay for installments either set out in the contract or on a monthly cycle. When a consumer does not pay by the expected date of payment, this is called a default in payment.

Defaults and Acceleration 

When a consumer defaults, the credit provider has two options available as per the credit agreement. The first is to allow the consumer to pay the default amount and then resume their agreed payment according to the credit agreement. The credit provider may also be able to ‘accelerate’ the payment vis-a-vis an acceleration clause often contained within the contract.

This means that any outstanding amount is immediately payable by the consumer, including the payment of immediate services and not just debts in arrears. When the acceleration clause has been invoked, credit providers and consumers usually terminate the credit agreement going forward after what has usually been a distasteful business relationship.

Reinstated Credit Agreement 

However, can a credit provider discontinue a credit agreement once acceleration has been invoked? Legally, a contractual agreement can be cancelled after a consumer has repaid their outstanding debts in the occurrence that an item/property has been bought and sold by the consumer during the time whereby payments were expected. However, during instances whereby a service or agreement has been entered into without limitations as those described above, a credit provider is under no obligation and has no right to cancel or end the contractual credit agreement without the approval of the consumer.

This was found out the hard way for a business that was involved with a consumer regarding mortgage repayments. As the consumer in question had not sold the property before the time of acceleration, the credit provider could not end the credit agreement. Make sure that you understand the limitations regarding credit acceleration and the termination of credit agreements as a registered credit provider.

If you require the services of a debt collection lawyer, don’t hesitate to contact Ivan Zartz Attorneys as soon as possible.