Client owes you money? Why an Acknowledgement of Debt is your best next step
4 min read · General information, not legal advice
Quick answer
Most debts in South Africa prescribe — become legally unenforceable — after 3 years. A signed Acknowledgement of Debt interrupts prescription, records exactly what is owed and why, and sets out a payment plan with consequences for missed payments.
Why debtors sign
An AOD usually gives the debtor something they want: time to pay in instalments and an end to collection pressure, in exchange for admitting the debt. It's often the easiest document you'll ever get a slow payer to sign.
What to include
The exact amount and what it's for, the instalment amounts and dates, an acceleration clause (miss one payment and the full balance is due), interest on arrears, and a certificate-of-balance clause so proving the amount later is simple.
If they still don't pay
A signed AOD makes a summons or default judgment far simpler, because the debt and the payment terms are already admitted in writing. For large amounts, hand the signed AOD to an attorney or debt collector.
