FAQs ABOUT REHABILITATION AFTER SEQUESTRATION

Discover the answers to all your burning questions about rehabilitation! Presenting an authoritative guide on rehabilitation! Learn more about rehabilitation after sequestration and find answers to the most commonly asked questions. This thorough list of frequently asked questions (FAQs) about rehabilitation will put an end to uncertainty.

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Have questions that aren't covered below? Don't worry! Our team of rehabilitation experts is here to help. Contact our offices today and get the answers you need. Discover the classic questions that are constantly on everyone's minds.

The importance of rehabilitation after sequestration
Unlock the doors to economic success with post-sequestration rehabilitation. It's an essential step towards reclaiming your place in a thriving economy. 

Can I still buy a house or a new car even though I'm still bankrupt and don't have the money to go through the process of rehabilitation?
No, It is important to remember that because you're legally insolvent, you cannot take on any more credit in accordance with the Insolvency Act. As a result, it is essential to complete the rehabilitation process after insolvency.  After that, you'll be able to buy your dream home or a new car.

What will happen if you decide against early rehabilitation prior to statutory rehabilitation?
Keep in mind that if you do not go through the process of rehabilitation after sequestration, you will not be able to buy a property, a new vehicle, or even get a cellphone contract in your name before statutory rehabilitation takes place. This is something that you should keep in mind.

In layman's terms, what does rehabilitation mean?
Rehabilitation after bankruptcy means that your status is changed from insolvent to rehabilitated.  That might not seem like a big deal, but because your status has changed from sequestrated to rehabilitated, you're no longer insolvent. 

How does rehabilitation influence my credit score and profile?
The status will change from insolvent to rehabilitated and will also be indicated on the credit profile of the affected individual.   Individual credit profiles will need to be rebuilt, but in some cases, people were able to obtain home loans shortly after obtaining the rehabilitation order.
What is the duration of insolvency before one is eligible to file for rehabilitation?

How will I know whether I'm eligible for rehabilitation after bankruptcy?
Once appointed, the curator will be in charge of the insolvent estate and will provide us with the information we need to determine whether or not to proceed with the rehabilitation application, based on what occurred in the insolvent estate.

How does an insolvent person go about the rehabilitation process?
The first step towards rehabilitation after sequestration is to contact a rehabilitation expert who will offer you with a free evaluation to establish whether you qualify for rehabilitation within the insolvency act's prescribed rules and regulations.

Qualifying criteria for rehabilitation under the Insolvency Act of South Africa

Six months from date of sequestration
If no claims have been filed against the insolvent estate within six months following sequestration, the individual(s) will be eligible for rehabilitation.

After six months from the date of finalisation of the insolvent estate
The rehabilitation process is available to insolvent once their estate has been finalised and confirmed by the master of the high court, and all debts, including interest, have been satisfied.

One year from the date of finalisation of the insolvent estate
The process is open to insolvent once their estate has been concluded and confirmed by the master of the high court, and all obligations have been paid, without interest.

How does automatic rehabilitation work?
Statutory rehabilitation occurs without a court order 10 years after sequestration. The insolvent party must file an application for rehabilitation before statutory rehabilitation to avoid remaining insolvent for ten years after sequestration, even if the estate has been finalised.

Is a court application necessary for rehabilitation, or is it possible for rehabilitation to take place without it?
You can choose not to apply for rehabilitation. The Insolvency Act states that you cannot make any debt for 10 years following sequestration because, after 10 years, you will be automatically rehabilitated. However, your status will remain insolvent until statutory rehabilitation has taken place.  

I couldn't find the question I was looking for.
Please contact us if your rehabilitation question isn't answered in the FAQs about rehabilitation. We will address all your questions.



Disclaimer: This article is for informational purposes only and does not constitute legal advice. Call on Cure Debt rather than relying on the information herein to make any decisions. The information is relevant to the date of publication.