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INSOLVENCY | HOW TO BENEFIT FROM INSOLVENSIE | INSOLVENCY EXPERTS@WORK...

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Insolvency often becomes the only solution when faced with overwhelming debt.

A short explanation of what insolvency is:   
Simply put, when your liabilities exceed your assets, you find yourself in a state of insolvency or bankruptcy. This is a legitimate reason to declare insolvency, also referred to as surrender of estate, sequestration, or bankruptcy.

When do most people typically think about filing for bankruptcy?
Filing for insolvency or sequestration typically indicates that their debts exceed their assets. When a business or person is unable to pay its debt, they file for insolvency.

How successful is filing for insolvency?
If you find yourself overwhelmed by personal debt, declaring insolvency can be an effective way to regain control and make a fresh start financially. 

The insolvency process involves getting the debt written off. However, it is important to keep in mind that this should only be considered as a last resort.

So, what exactly defines insolvency? In a bankruptcy case, a court application is made to prove that the person is incapable of repaying his or her debts. If you've been unable to pay your debts, you have two options:

There are two types of insolvency: voluntary and compulsory sequestration.  For the purpose of this article, we will only discuss voluntary insolvency. 

Voluntary sequestration
Filing for sequestration means petitioning the court to approve the surrender of your estate for the benefit of creditors. This process is known as voluntary sequestration because it is initiated by the person owing the debt.

What will the court take into consideration before approving an insolvency application?
If the courts believe this is the best alternative for your creditors, they will simply approve it. In fact, your creditors will receive an average of 10–25 cents for each rand owed to them. 

Benefit to the creditors:
Because all creditors will receive the same benefit in terms of their debt, it is considered to be to the creditors' advantage if a voluntary sequestration application is granted.

What will happen to my stuff?
During the legal process, the master and the designated trustee will oversee your assets. The trustee assumes the responsibility of supervising your finances and devising strategies to transform your assets into cash, subsequently settling any outstanding debts with your creditors based on their proven claims against the insolvent estate.

Rehabilitation after Insolvency: 

How to Know if You Qualify for the Rehabilitation Process After Insolvency?
In terms of rehabilitation after insolvency, the Insolvency Act specifies several sections. However, the Debt Solutions Expert can only determine your eligibility for the process after conducting a comprehensive investigation into the insolvent estate, following the court's approval of your application.

In terms of the Insolvency Act, you can qualify for rehabilitation after sequestration in one of the following four ways:
Bear in mind that the below-mentioned time frames all come with a specific set of prescribed rules and regulations that the insolvent needs to adhere to, prior to qualifying for the process, as detailed in the Insolvency Act. 

Therefore, the prescription of this time frame does not guarantee your eligibility for the rehabilitation process. The Debt Solutions Expert will need to investigate to determine your eligibility for rehabilitation, and if not, when would you be eligible?

1. Statutory Rehabilitation: ten years from the date of sequestration.
2. Six months from the date of sequestration.
3. Six months from the date the master confirms the insolvent estate.
4. One year from the date of the high court master's confirmation of the insolvent estate.

How can an insolvency application benefit me?
The court application will include all debts, including those not on the creditors list, when you file for insolvency. Declaring insolvency stops all legal proceedings and reduces legal collection fees and disbursements. If no creditor submits a claim, the bankrupt estate will write off the creditor's entire debt.

No more harassment from debt collectors.
Debt collectors will finally stop their harassing phone calls, allowing you to answer your phone without fear of losing your belongings.

What about the properties registered in my name at the Deeds Office?
It is important to understand that if you declare insolvency, you will lose all immovable property registered in your name at the deeds office in the insolvent estate. Whether or not you have a bond on the property is irrelevant.

If I declare insolvency, will I lose my vehicles?
This is a complex question that many overindebted individuals find deeply concerning. This is because public transport in South Africa falls short of international standards, making it difficult to survive without a vehicle.
If the finance agreement is in your name and you finance the vehicle through a standard vehicle finance loan at a financial institution, you will lose your vehicle(s). You won't lose the vehicle(s) if:

1. You purchased it through a lease agreement; or
2. Rent-to-own; or
3. The vehicle is paid in full.

Declaring insolvency has both advantages and disadvantages.
Before deciding to file for insolvency in South Africa, it is critical to weigh the pros and cons of the process.

Advantages of Insolvency:
• You can waive up to 80% of your debt.

• Over time, it is the most cost-effective strategy to pay off debt.

• It is the easiest way to get rid of debt.

• Creditors will no longer be able to pursue you directly for their debts.

Disadvantages of Insolvency:
• It will have a negative impact on your credit score and label you as insolvent or bankrupt.

• After sequestration, you will require a rehabilitation court order to clear your credit. This is a new court application once the insolvent estate has been finalised. Both the master and the trustee must grant permission for the rehabilitation order to be successful.

• If you receive an inheritance while insolvent, you can lose it to the insolvent estate.

• You will not be able to take on any new credit before you're rehabilitated in terms of the insolvency act, either by way of a rehabilitation order or statutory rehabilitation.

Here's some expert advice for you:
We recommend consulting with a debt solutions expert before making any decisions about the process, as there are many potential pitfalls to be aware of. 

It's important to work with a debt solutions expert who is well-versed in all the available options under South African law. This way, you can avoid choosing insolvency when there might be a better alternative for your financial situation.

Call Cure Debt today and become one of the lucky ones. Once again, become debt-free and enjoy the benefits that come with it. Enjoying life once more.

It is important to remember that debt solution processes are complex legal processes, and if not dealt with in a professional and correct manner, they can be very stressful and frustrating. Therefore, we recommend consulting with a qualified NCR-accredited debt solution expert before proceeding with any debt solution.

CUREDEBT IS AN NCR-REGISTERED DEBT RELIEF SOLUTIONS EXPERT SERVICE PROVIDER.
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).

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WHY SHOULD YOU TRUST CURE DEBT WITH YOUR FINANCIAL DIFFICULTIES?
We genuinely care about you and how this process will impact you. We acknowledge that if you choose not to proceed, there will be a financial impact for us. However, the main focus is not on the financial aspect, but rather on the desire to assist individuals in overcoming their financial difficulties. Let's get you back on track to living your life to the fullest. Start Living Again!

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We work with several professionals, specialising in their different fields, to serve our clients. With a combined experience of more than a century. We can proudly state that 'We are the best in the business of helping people and businesses become debt-free.  Become debt-free Today!

We have an array of services we offer, and we SPECIALISE IN FINANCIAL DIFFICULTIES AND REHABILITATION.

OUR SERVICES INCLUDE:
Debt Review | Debt Counselling | Debt Mediation & Restructuring | Cancellation of the Debt Review | Sequestration | Rehabilitation | Liquidation | Credit Clearance of Credit Score | Business Rescue, etc.

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