With so much misinformation circulating on the internet concerning various debt solutions, it became evident that a debt solutions expert with over 30 years of experience should answer important questions about sequestration and how it will impact you.
What is sequestration?
Sequestration is a legal process. It is also known as insolvency or, in layman's terms, bankruptcy. It is a High Court application,
surrendering your insolvent estate into the hands of the Master of the High Court. It's important to remember that to have the best chance of success, you should consult with a debt solutions expert. The Debt Solutions expert will guide you through the sequestration process.
Who can apply for sequestration?
Anyone who is struggling financially can apply for sequestration. If your liabilities exceed your assets, you will be a good candidate for the sequestration process. However, it is important to remember that there’s a certain criterion that you need to adhere to for a sequestration application to be successful. Cure Debt will provide you with a free consultation and assessment, as well as inform you of the best debt solutions available for your financial situation.
How do I go about applying for sequestration?
This is a High Court application. Therefore, it is advisable to appoint an
NCR-accredited debt solutions expert that will be able to assist you in this application and guide you through the sequestration process until such time that you can apply for rehabilitation and clear your credit record.
How much is the cost for a sequestration application?
This is a High Court application. As a result, it is advisable to appoint an NCR-accredited debt solutions expert who will be able to assist you with this application and guide you through the sequestration process until you can apply for rehabilitation and clear your credit record.
What will happen to my furniture, cars, trailers, etc. (movable assets) if I am declared insolvent?
You will not lose your movable assets. But you will pay 10–25% of the debt plus curator and master fees in affordable monthly instalments once the application is granted and the curator is appointed. This will ensure the safety of your movable assets.
No credit after the sequestration order is granted. True or False?
True, as with any other debt solution, your credit record will be negatively affected, but the period of financial recovery is much shorter than with any other debt solution available under
South African law.
How long will I stay insolvent?
Individuals can qualify for rehabilitation after sequestration as soon as six (6) months from the date the order was granted. Talk to one of our debt solutions experts and ask them to explain to you in more detail the process of rehabilitation after sequestration.
Will my debt be written off?
Up to 90% of the debts will be written off, including SARS debt. Your Debt Solutions Expert will explain it in more detail.
Can I stop the sequestration process after the advertisement has been published in the Government Gazette?
If you choose to stop the process, creditors can still file a sequestration application because you committed an act of insolvency by starting the process. If you speak with one of our debt solutions experts, they will discuss the implications of this decision in greater detail, as well as the different avenues to get out of this challenging situation.
Will my spouse’s assets be affected by my sequestration?
This will depend on how you’re married. But the short answer is that if you’re married out of community property, meaning that you signed an antenuptial agreement prior to the wedding, then your spouse's assets will not be affected by this application. However, we do suggest that you speak to one of our debt solutions experts to answer this question in more detail.
Will I lose my immovable property (house) if I declare bankruptcy?
When the application is granted, you will lose your house, even if the property is paid in full.
Will pension fund benefits form part of the insolvent estate?
Pension fund monies and policies do not form part of the insolvent estate and are safe.
Do I have to be unemployed to qualify for sequestration?
No, you must work to earn a living. It is your constitutional right to earn an income.
How will sequestration affect my employment, and will my employer be informed of the process?
Nobody will contact your employer unless you instruct the Debt Solutions Expert to communicate with your employer to remove garnishee order deductions from your salary.
Will sequestration hinder travelling for work or leisure to other countries?
The sequestration process doesn’t prohibit you from travelling anywhere in the world, be it for work or leisure.
What’s the work of the curator / trustee on an insolvent estate?
The curator is responsible for administering the insolvent estate. For instance, the curator collaborates with the Master of the High Court to organise meetings for creditors to present their claims against the insolvent estate. Talk to one of our debt solutions experts to get a more detailed answer.
Who appoints the curator / trustee, and is it possible for me to appoint a curator myself?
No, the Master of the High Court appoints curators and trustees. However, if you work with a debt solution professional, they will have good relations with the trustees and can help you get a trustee appointed sooner rather than later. This will expedite the finalisation of the insolvent estate administration, allowing you to qualify for rehabilitation following sequestration sooner.
Consequences of sequestration, what can I expect?
Although it's not a long response, the answer exceeds the allotted space in this question. However, it's the most crucial question you can pose. As a result, your credit profile will suffer. But we do suggest that you contact one of our debt solutions experts to assist you with a more detailed answer.
Can I apply for sequestration more than once?
Yes, but this is not recommended. Remember, you must undergo rehabilitation following the previous sequestration to be eligible for a second sequestration. If you declare insolvency more than once, it will be to your detriment, and the qualification for rehabilitation after the second sequestration order is a minimum of five (5) years after the date of sequestration.
Can I be a business owner if I am insolvent?
No, this is not applicable if the business is registered at CIPC, and you are listed as a director of the registered company. However, if you’re not listed as a director at CIPC but still manage the business, or if it’s a sole proprietorship, you are allowed to even be a business owner.
