INTRODUCTION:
One of the most pressing questions regarding sequestration is, "How can I bounce back from this?" Is there life after sequestration, and if so, how can we navigate through it?
A fresh start—this is your do-over! Life after sequestration presents an opportunity for a fresh start and a debt-free journey.
Anticipating sequestration, the aftermath and exploring the potential benefits of living a debt-free life.
The sequestration order has been granted and as a result, you are now legally bankrupt. This is quite an emotional moment.
A whirlwind of emotions: Certain individuals may go through waves of embarrassment and sadness, along with a sense of relief. It's understandable if you feel trapped in the confines of sequestration, with no apparent escape in sight.
You're not alone!
Bankruptcy is a common occurrence, experienced by many before you and many more to come. Just like any legal process, there are both pros and cons to consider. However, the advantages far outweigh the disadvantages.
What emotional impact will an insolvency application have on me?
Emotionally, this is a significant decision, and those who make it may feel guilty, but they are also relieved to be debt-free and to be able to live a debt-free life without fear of garnishee orders against their salary.
Under the protection of the Insolvency Act:
Because the debt is now part of the insolvent estate, and you are protected by the Insolvency Act.
There is life after sequestration, and it is a great chance to start over with no debts.
Is there any process in South African Law that allows debt to be written off legally?
Sequestration is the only process in South African law that allows you to be entirely debt free. This process allows for debt to be written off legally.
Will the debts be written off entirely?This is also the only means through which South Africans can have debts written off, but not entirely. Up to 90% of debts will be written off legally. After Sequestration, life is debt-free.
How can this process help me stay debt free once I apply for rehabilitation after sequestration?
This approach enables you to work with the money you earn rather than the extended credit you can acquire. This will be based on your monthly revenue.
As a result, you have more financial freedom without having to pay most of your income to creditors and continue to rely on credit. Life after sequestration helps you to be free of your past debts and mistakes, since you can start over with no debts to stress over.
Will I ever be able to recover from sequestration and clear my credit name? After the process is completed and a rehabilitation order is issued, the rehabilitated insolvent will have the opportunity to clear and rebuild their credit profile.
Yes, after sequestration, you will be able to clear your credit name.
In your future, there is going to be a home and a wonderful new vehicle; life after sequestration is exciting and fulfilling, and you will have a fresh start after getting rid of your debts and anxiety.
What's life like after sequestration?
After sequestration, life is debt-free and stress-free, and you can finally start planning for your future without worrying about past debts.
What happens after the sequestration order is granted?
You are legally bankrupt and have a court judgement certifying your bankruptcy. This court ruling prevents creditors from garnishing your wages or seizing your possessions in order to recover money owed.
Who appoints a curator?
The Master of the High Court appoints a curator to the insolvent estate upon the granting of the sequestration order.
What is the timeline for the appointment of the curator?
This takes approximately 2 to 6 weeks from the date of sequestration, depending on the master's workload.
What happens now that the curator has been appointed in the insolvent estate?
You will be contacted by the curator and given a provisional appointment certificate.
What else will the Curator include in the first communication?
The Curator will determine if you want to buy your movable assets back from the insolvent estate in the communication.
I chose to purchase my movable goods from the insolvent estate; what now?
If you indicate that you want to buy the movable assets from the insolvent estate, you will be provided the option to establish a payment plan for up to 18 months.
The Curator, on the other hand, is not required to provide you the opportunity to buy back your movable possessions. If you do not honour the buyback agreement, the Curator will confiscate and remove all movable assets and sell them on auction.
I own a house; will I be able to repurchase it from the insolvent estate?
No, whether bonded or not, if an immovable property is part of the insolvent estate, you will lose the property. In terms of the insolvency act, all immovable property that forms part of an insolvent estate must be sold.
What happens with the monies received from the sale of the property?
The proceeds must be used to settle the financial institution that bonded the property, and any profits added to the benefit of the creditors and duly paid in terms of the proved claims against the insolvent estate.
When will creditors file claims against the insolvent estate?
During the Curator and Master's proceedings, creditors will have the opportunity to submit and prove their claims against the insolvent estate.
How will I know which creditors received payments from the insolvent estate and what amounts were proven against the insolvent estate?
Only after the insolvent estate has been concluded and confirmed by the Master of the High Court will you be able to determine whose claims and amounts have been proven against it.
How long does it take to complete the process?
It takes about 2 to 3 years from the date of sequestration. It is crucial to note that these are only estimates based on how quickly a curator is appointed on an insolvency.
How am I going to survive financially following sequestration, and am I authorised to incur debts after the estate has been settled?
During the period of insolvency, you are not permitted to incur debts. Debts can only be incurred if a rehabilitation application after sequestration is granted before the statutory rehabilitation period of ten years from the date of insolvency.
Important to remember: It is critical not to dismiss the curator appointed in the insolvent estate, as the curator will represent the creditors in the insolvent estate. As a result, working with the curator rather than against him or her will benefit you.
In Conclusion:
Finally, even though this is an emotional decision, I can honestly say that sequestration is not the end of your life, but rather the beginning of a debt-free existence. However, I recommend that you appoint a debt relief specialist to help you with this endeavour in order to keep the stress and worry to a minimum.
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