ASSETS & INSOLVENCY | HOW TO KNOW | I CAN'T LOSE IT | I NEED HELP!

ASSETS & INSOLVENCY
Assets & Insolvency always go hand in hand. How will Insolvency impact my assets and will I be able to keep it. The big question is what if you don’t have any assets and need to declare bankruptcy. Another question is what if I don’t want to lose my assets. Do I have to lose my assets or not?

What happens to my assets if I declare insolvency?
What happens to my assets when I declare bankruptcy? This burning question is on every person's mind when they consider bankruptcy as a debt relief solution. This is a small question with a complex answer.

The short answer is that if you have no assets, you can sequestrate yourself. If you have movable assets, you can buy them from the insolvent estate. However, it's crucial to keep in mind that you cannot purchase immovable assets from the insolvent estate. This means that you will lose any property registered in your name at the deeds office, whether paid in full or not.

At which point exactly does an individual become insolvent?
A person is considered insolvent when their liabilities significantly exceed their assets.  But this doesn't mean that a person is insolvent because he / she has more liabilities than assets.  Only a court order can proof insolvency. 

Assets are defined as:
The term "assets" refers to anything that you have ownership of.

Immovable Assets

Immovable assets, such as property, registered in your name don't necessarily need to be paid in full and can be used as an asset even if it's not paid in full.

Movable Assets
Vehicles, trailers, caravans, and even furniture are examples of movable assets. Movable assets, on the other hand, must be paid up or worth more than the outstanding balance due.

If there's still an outstanding balance due on a vehicle but the monetary value of the vehicle is more than the outstanding balance, it is a movable asset. In a voluntary sequestration application, the vehicle becomes a liability if its outstanding balance exceeds its value.

During the process of becoming insolvent, why are assets so important?
The ability to use assets to settle debt with creditors is one of the reasons they are so important.

Examples of immovable assets include:
A good way of describing what immovable assets are is to think of the word 'immovable' meaning the assets are fixed and cannot be moved. Examples of immovable properties include your home, a piece of property, and even a large farm shed or a small piece of land. This is due to the inability to physically move immovable objects.

When you declare yourself insolvent, what happens to your assets after that?
As part of a voluntary sequestration application, a sworn valuer completes a valuation report, assessing your assets to ensure they are sufficient to cover the creditors' benefit if they are sold at auction. However, this varies depending on the type of sequestration application.

To qualify for bankruptcy in South Africa, do you need to have assets?
The answer is no. It is entirely dependent on the type of sequestration application. In certain cases, such as compulsory sequestration, the applicant, acting as a creditor, only needs to demonstrate to the court that an act of insolvency occurred.

In this instance, it is not necessary to prove to the court the value of the assets because the creditor will not be privy to the assets unless they're immovable assets that are registered at the deeds office in South Africa.

Debt Review | Debt Counselling | Debt Mediation & Restructuring | Cancellation of the Debt Review | Sequestration | Rehabilitation | Liquidation | Credit Clearance of Credit Score | Business Rescue, etc.