In this guide, you’ll discover exactly how the process works, what the Insolvency Act requires, and how CureDebt supports you from start to finish.
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What Is Sequestration (Personal Insolvency)?
In South Africa, when an individual becomes insolvent, the legal process used is called sequestration. Essentially, this is a High Court insolvency application where you voluntarily surrender your estate because your debts exceed your assets.
According to the Insolvency Act 24 of 1936, sequestration is only granted if:• You are insolvent (liabilities exceed assets)
• There is a benefit to creditors (usually a dividend of ±20c per rand)
• You can cover the legal and administrative costs of the application
As a result, these requirements form the foundation of any insolvency application in South Africa.
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Types of Insolvency Applications1. Voluntary Sequestration
This is when you apply to the court to surrender your estate. Because it offers more control and predictability, it is the most common route for individuals facing
personal insolvency.2. Compulsory Sequestration
Alternatively, a creditor may apply to court to sequestrate your estate after proving
an act of insolvency.________________________________________
How to Apply for Insolvency in South Africa in 2026 (Step by Step)
Below is the exact process followed when CureDebt assists you with voluntary sequestration. Each step is essential, and together they ensure full legal compliance.
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1. Free Assessment & Financial ReviewTo begin, we conduct a confidential assessment of your:
• Total debt
• Assets
• Income
• Legal exposure (summonses, judgments, garnishees)
This allows us to determine whether
insolvency, sequestration, or debt review is the most suitable solution.
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2. Drafting the Founding Affidavit & Statement of Affairs
Next, if sequestration is appropriate, our legal partners prepare:
• Founding Affidavit (your sworn statement to the High Court)
• Statement of Affairs (full list of assets, liabilities, income, expenses, and creditors)
These documents must comply strictly with the Insolvency Act.
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3. Publishing the Notice of Surrender
After your documents are prepared, the law requires publication in:
• The Government Gazette
• A local newspaper
This step ensures transparency and protects creditors during the
insolvency process.________________________________________
4. Lodging Documents With the Master of the High Court
Once published, your statement of affairs is submitted to the master for inspection.
Creditors may raise queries, and CureDebt assists you in addressing them promptly.
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5. High Court Application & Hearing
After the Master’s review, your attorney files the application at the High Court.
Court information
During the hearing, the judge considers the following:
• Insolvency
• Benefit to creditors
• Compliance with all legal requirements
If satisfied, the court grants a provisional sequestration order, followed later by a final sequestration order.
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6. Appointment of a Trustee
Following the final order, a trustee is appointed to administer your estate. At this stage, you must:
• Cooperate fully
• Disclose all assets and income
• Avoid incurring new debt without permission
This forms part of the insolvent estate administration process.
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Life After Insolvency
Once sequestrated:
• All legal action by creditors stops
• Garnishees and interest stop
• You begin rebuilding your financial life under trustee supervision
• You may apply for rehabilitation after a set period.
(In some instances as early as six (6) months from the date of sequestration).
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Why South Africans Choose CureDebt• We simplify a complex legal process
• We work with specialist insolvency attorneys
• We protect your dignity and guide you step by step
• We ensure full compliance with the Insolvency Act
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How CureDebt Navigates the Storm with You
Clearly, you don’t have to face this economic crisis alone. Because interest rates and fuel prices are climbing simultaneously, more South Africans are proactively seeking legal debt solutions.
CureDebt specialises in providing:• Expert Voluntary Sequestration guidance.
• Formal Voluntary Surrender of Estate processes.
• Compassionate and strictly confidential support.
Basically, you deserve clarity and a real path forward. If you are feeling the pressure, don't wait for the next rate hike to take action.
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Why CureDebt Is the Trusted Leader in Sequestration
CureDebt has become South Africa’s most respected sequestration specialist because we combine legal expertise with genuine care for our clients’ wellbeing.
Our clients consistently describe us as:
• Professional
• Compassionate
• Transparent
• Highly effective
You can read their real experiences
here:
HelloPeter ReviewsThese reviews reflect what we stand for: dignity, clarity, and real results.________________________________________
Useful Resources for Further Reading•
What is Sequestration?•
Voluntary Sequestration Explained•
Compulsory Sequestration•
Liquidation vs Sequestration•
CureDebt ________________________________________
A Fresh Start Is Possible — And It Starts with One Conversation
Liquidation may feel like the end, but for many directors and employees, it becomes the turning point that leads to a stronger, more stable financial future.
Sequestration does not constitute failure.
It is a legal reset, a second chance, and a path back to dignity.
CureDebt is here to guide you through every step, with expertise, compassion, and a proven track record of changed lives.
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Take the first step toward freedom:
