BANKRUPTCY IN SOUTH AFRICA

Learn about filing for bankruptcy in South Africa and the basic steps for gathering the necessary information.

Make use of a bankruptcy specialist.
Consulting with an insolvency expert who can explain bankruptcy in South Africa, the process, and remove misconceptions about sequestration should be your first step in addressing insurmountable debt.  Bankruptcies in South Africa are an ordinary legal process, and locating a practitioner in this field is readily achievable. However, it is very important to ensure that companies specialising in Debt Relief Solutions are registered with the National Credit Regulator (NCR).  

Why is it important to find a service provider that is registered with the National Credit Regulator (NCR)?
The NCR regulates the service providers that specialise in debt relief solutions, and therefore it is of utmost importance that any service provider that states that they're an accredited insolvency practitioner be able to prove that they are registered with the NCR as a debt relief solutions service provider.  This will ensure your safety and security and provide you with added peace of mind, ensuring that you're working with an accredited debt relief service provider that specialises in bankruptcy in South Africa. 

What does it mean to be insolvent?
A person is considered financially insolvent if their monthly income is not enough to cover all their monthly expenses and debts. It is also the state of a company's finances when its liabilities are greater than its assets and it is unable to fulfil its financial obligations. Sequestration is the process through which the assets of an individual can be auctioned off in order to pay off their debts. The procedure is known as liquidation in terms of a company, with the exception of a sole proprietorship.  Bankruptcy in South Africa is a fairly common court application, and finding a specialist is fairly easy.  What is not so easy is to find a company that specialises in debt relief solutions that is registered with the National Credit Regulator (NCR) and specialises in insolvency. 

How Sequestration Differs from Liquidation
The main difference between sequestration and liquidation is that liquidation does not require assets of any kind on the part of the company to be deemed insolvent, while sequestration is applicable only to individuals.

An Overview of the Bankruptcy in South Africa
A legal representative will work with the insolvency practitioner, who is often an attorney, to protect your interests. Although the court can ask you to, you are not required to make an appearance. You must submit an affidavit detailing your financial condition and the events leading up to it to the High Court of South Africa. To declare your desire to sequester, you must also publish a notice in the government gazette and appropriate newspapers. Because there's a court process that needs to be followed, you have to inform your creditors of your intention to voluntary surrender your estate via registered mail.

When will I be able to apply for rehabilitation after sequestration?
You are eligible to apply for rehabilitation after as little as six months have passed since the date of sequestration. Bear in mind that there's a certain criterion that every insolvent needs to adhere to in terms of the Insolvency Act to qualify for rehabilitation after sequestration, and therefore this needs to be ascertained first before paying any fees for a rehabilitation application after sequestration. Call an insolvency specialist to learn about the processes and timelines pertaining to the insolvency's rules and regulations.

Why cure debt?
Cure Debt is the ultimate debt relief solution to your unique debt problem.  With a proven track record, we are proud to say that we can help you become debt-free.