SOUTH AFRICA - DEBT EXPERTS

Professional debt solutions in South Africa include voluntary sequestration, debt review, consolidation, and administration. Voluntary sequestration is one of the expert debt remedies offered in South Africa, and it will be the main topic of this study.

As a result of the high cost of living, including food and petrol, many South Africans find themselves even more indebted than before.

Professional debt solutions are available to South Africans who are bankrupt and unable to repay their debts, and one of these possibilities is voluntary sequestration. In South Africa, one must apply to the court for voluntary sequestration in order to be declared bankrupt. Because this is a formal legal procedure, the applicant should consult a legal professional.

If the applicant can provide evidence of insolvency, the court will grant permission. Filing for bankruptcy indicates financial insolvency, which means the debtor has more liabilities than assets and cannot pay them back. 

The applicant must have sufficient assets to ensure that the creditors receive sufficient funds from the sale of the assets.  Overseen by a curator appointed by the master of the high court.

Twenty cents per rand is the bare minimum that must be paid out to each creditor. The assets should also bring in enough money from the sale to pay for curator expenses, legal fees, and the sequestration process.

Given the above, it is reasonable to question why South African professionals recommend voluntary sequestration as a debt solution, particularly knowing that the applicant stands to lose all of their assets in the process. The reality is that, in contrast to debt review or administration, the applicant can swiftly pay off most of their debt. A debtor may remain indebted for a long-time during debt review, and creditors may find opportunities to get out of the review altogether. Creditors can terminate the debt review and request immediate payment in the event that the debtor is late with a payment or skips a payment altogether.

However, the expense of voluntary sequestration should also be taken into account if the debt does not exceed R120,000. One of the best expert debt solutions in this situation can be sequestration. Although other professional debt treatments, like debt review, can help with smaller amounts of debt, voluntary sequestration is the way to go when the debt is considerable, and the debtor will still be over-indebted years down the road.

Remember that the insolvent person will also lose ownership of their immovable property. The furniture from the surrendered estate can be bought back at a reasonable price with no interest if you arrange for it. Debtors are not required to remove the written-up furniture from their homes. The debtor's income, retirement savings, and operational assets are not considered part of the estate that is being surrendered. Each debtor's circumstance is unique; thus, the optimal solution will vary.

We suggest discussing the pros and cons of voluntary sequestration and any other debt solutions with our experts so you can determine if it's the right choice for your indebtedness.

Steer clear of those that aren't authorised NCR-registered debt relief solutions service providers. It really is that simple. Any practitioner specialising in debt relief solutions is required to be NCR-registered because debt relief solutions practitioners are monitored by the National Credit Regulator (NCR).

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.