COMMON MYTHS ABOUT INSOLVENCY...
Myths about insolvency are fairly common among consumers who believe they understand the process. There's lots of material floating around on the internet, but which of these is genuine and factual? Because we are industry leaders, we can blast every myth into oblivion.
Exactly how much of what a friend or family member tells you is true?
Some individuals may appear to be very knowledgeable about the subject. However, after consulting with industry experts, it becomes evident that the information from family members, friends, and even the internet is inaccurate and misinterpreted.
Myths about Sequestration.
Have you ever watched MythBusters? We believe in the importance of having accurate information while making crucial decisions, so we decided to debunk the myths around insolvency.
Always consult a professional first before making a decision.
Rather than relying on friends, family, or even the internet for information, it's preferable to speak with a professional who specialises in insolvency.
LET'S BUST A FEW MYTHS ABOUT SEQUESTRATION:
1. If you become bankrupt, you will lose all of your movable assets.
False. Insolvents don't lose their movable assets when applying for sequestration. You'll be able to buy it back from the insolvent estate and, as a result, rid yourself of up to 90% of your debts.
2. You will be bankrupt for ten years before you can clear your credit history.
False. An application for rehabilitation can be made as soon as 6 months after sequestration. But only if the rules and regulations outlined in the
Insolvency Act, have been adhered to.
When do the 10-year period come into play?
Unless the insolvent chooses not to rehabilitate after sequestration, in which case statutory rehabilitation, otherwise known as, automatic rehabilitation, will take affect 10 years from the date of sequestration.
3. You can choose which debts to mention in your insolvency petition.
False, The Sequestration Application, must include all your debts. Because the Insolvency Act states that one creditor may not benefit above the other.
4. When filing for bankruptcy, is all debt be written off?
False. When applying for sequestration, up to 90% of the debts are written off. The remainder is paid over a maximum period of 18 interest-free installments. Because the bulk of your debt is written off, the insolvent is able to start fresh without any debt in a shorter timeframe than with any other process.
5. You will never be able to buy a home, a car, or open a bank account again.
False. Because of the rehabilitation order, the individual will have the opportunity to clear their credit record and rebuild their credit score, and therefore they'll be able to make debt once again. Therefore, it is of utmost importance for the insolvent to apply for rehabilitation after sequestration.
6. The trustee will attach your monthly salary and have complete control over your remuneration.
False. Even though the insolvent party must submit certain information to the trustee in order to comply with the rules and regulations of the Insolvency Act, your monthly salary remains separate, and you enjoy complete independence over your monthly income and expenditure.
7. You are not permitted to own a business while under sequestration.
False. The insolvent can be a sole proprietor and even own shares in a company but cannot be a director of a company registered with the
Companies and Intellectual Property Commission (CIPC).8. SARS debt is not included in the sequestration process.
False; All debts are part of the process, including SARS. Once the sequestration order is granted, the insolvent will be assigned a new tax number. Therefore, the insolvent starts fresh with no SARS debts after the sequestration.
9. Sequestration applications are either free or pro bono.
False. Because this is a high court application and an attorney and advocate are involved in the process, it is not free. The application's costs vary depending on various factors.
VERY IMPORTANT:
If any service provider claims that the fees are only R6000 to R9000, they're not being truthful. Because it is for professional individuals and services, it is impossible to submit a sequestration application for that amount. If you pay peanuts, you'll get monkeys. Be wise and use specialised service providers.
10. Sequestration cannot be applied for while the client is under review.
False, because a debt review order is a magistrate's court or tribunal order and a sequestration order is a high court order, the high court is the higher court, and the sequestration order takes precedence over the debt review order.
11. One cannot apply for sequestration if they have no assets.
False. It is possible to apply for sequestration without any assets.
Why do we believe we are the best in our field?
Cure Debt has been named the
best organisation, in South Africa for assisting individuals and businesses in declaring bankruptcy by
major news networks and platforms in South Africa.
Cure Debt is an industry leader in debt relief solutions.
Furthermore, Cure Debt acts in an advisory capacity about
debt relief solutions in South Africa to various entities. Because of our extensive experience, knowledge, and understanding of the different debt relief solutions in South African law and the implementation thereof.
In Conclusion: Because you want the best possible outcome, it is of utmost importance to find the right company to assist you in this endeavour to ensure that the matter is dealt with in a professional manner and that it is a reputable company that will provide you with the correct information pertaining to your financial situation.
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We care about you and how this process will affect you. We know and understand that if you decide not to continue with the process, we will lose money.
But it is not about the money; it is about helping people get out of financial distress. To help you
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We worked with several professionals, specialising in their different fields, to serve our clients. With a combined experience of more than 120 years. We can proudly state that 'We are the best in the business of helping people and businesses
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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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