Learn about the principles of declaring bankruptcy and how you can benefit from it. What is the positive and negative attributes about the process. How can you use it to your advantage and ultimately live a debt-free life.
The first step in eliminating debt is to consult with a NCR accredited Debt Relief Professional who can dispel myths about sequestration and guide you through the process and Principals of Declaring Bankruptcy in South Africa.
What exactly is the principles of declaring bankruptcy?
Insolvency / Bankruptcy / Sequestration is a financial scenario in which an individual's earnings are inadequate to cover their monthly bills and debts.
Do Bankruptcy only occur in individuals or with Businesses as well?
It is also the financial situation of a company in which the liabilities considerably outnumber the assets, and the business is unable to meet its financial obligations.
When do Sequestration occur?
Sequestration occurs when an individual's financial estate is surrendered for the purpose of selling assets and distributing the proceeds to major and minor creditors. This is one of the most basic principles of bankruptcy which almost everyone is aware of.
When do Company Liquidation occur?
Are individuals required to have assets when Declaring Bankruptcy?
A natural person can only sequestrate if they have movable and / or immovable property. Or adequate money to pay the creditors the minimal benefit amount in cash.
What will happen to the remaining debt?
To pay off the remaining debt, the natural person must have an income. It is therefore critical to consult with a Debt Relief Specialist who can advise you whether you qualify for voluntary sequestration / Bankruptcy.
What is the minimum amount necessary in terms of assets to ensure that there's sufficient value to cover the benefit to the creditors?
It should be noted that there should be movable / immovable asset and / or cash to the value of at least ten cents in the rand. But these amounts differ in different provinces, however your Debt Relief Specialist will be able to assist you with the information pertaining to your enquiry.
Who is the Debt Relief Specialist?
The
Debt Relief Specialist is usually a lawyer who works with an advocate on your behalf. You are not required to be present in court.
Where will the application be filed?
The application is filed in the
High Court of South Africa, and the court evaluates the court application that describes your financial situation and the events that led to it.
Will my creditors be notified about the Sequestration Application?
To indicate your desire to be sequestrated, it is a requirement in terms of the
Insolvency Act, Act 24 of 1936 to furnish the creditors with notice of your intention to Declare Bankruptcy.
How will my Creditors be notified about my desire to Declare Bankruptcy?
This is done by way of an Advertisement that will be published in the
Government Gazette and notices will be send via registered post to every creditor.
How will the value of the assets be determined?
An appraiser will do a valuation of your assets, which include tangible assets such as real estate, automobiles, and equipment, as well as money in your bank accounts and any obligations owing to you.
What happens if the overall amount falls short of the Creditors' minimum?
If the overall amount falls short of the creditors' minimum of ten cents out of the rand, you can augment it with donations or cash from friends or family members to guarantee that the application is granted.
When will the sale of the Assets take place and who will sell the Assets?
The order for sequestration will be granted by the court, and a trustee will be appointed by the Master of the High Court, after the Sequestration order have been granted, to supervise the sale of assets and distribution of benefits to creditors.
When will I qualify to apply for Rehabilitation after Sequestration?
You can apply for
rehabilitation after sequestration approximately twelve months, after the insolvent estate have been finalized and the final liquidation and distribution account was confirmed by the Master of the High Court.
How will I know when I can Apply for Rehabilitation after Sequestration?
Periods applicable as described in the Insolvency Act, to rehabilitation should be explored with a Debt Relief Specialist, which will be able to do a calculation of when the insolvent will qualify for rehabilitation after sequestration, once the assessment have been finalised.
Find a Debt Relief Specialist to help you find the perfect solution for your specific financial needs.
Call Cure Debt and talk to one of our Debt Relief Specialists, find the Debt Relief you need from the best Debt Relief Specialists in South Africa.
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