Rehabilitation after Sequestration is a remedy available to the insolvent and is also regulated by the Insolvency Act 24 of 1936.
The insolvent will approach the High Court with an application where he or she must convince the Court that the administration on the Insolvent Estate is completed and that he is indeed no longer insolvent.
This application can take place, in most cases, within approximately three to five years after the date of sequestration. The rehabilitated individual will be allowed to trade as usual and apply for loans, should he wish to do so and he will be in a position to rebuild his Credit Profile.
How does Automatic Rehabilitation work?
Automatic Rehabilitation happens ten (10) years from Date of Sequestration, whether it was Voluntary or Compulsory Sequestration.
Automatic Rehabilitation is not a High Court Application but merely a certificate from the Master of the High Court Confirming that it’s been 10 years since date of Sequestration and that the Insolvent is no longer Insolvent but solvent and is therefore allowed to take part in the Economy again.
What happens if there was any Shortfall / Surplus left on the Insolvent Estate and Automatic Rehabilitation takes place?
This monies will be written off.
What should my motivation be to continue with a Rehabilitation Application after Sequestration?
Should you decide not to continue with a Rehabilitation Application after Sequestration, your Financial and Economic Status will stay Insolvent and you will not be allowed to take part in the economy.
For instance:
Should you receive an inheritance it will form part of the Insolvent Estate. Contact one of our Debt Specialists to assist you with the relevant information pertaining to this question, and how to get passed this predicament.
You will not be able to buy an Immovable Property. You might qualify for a bond and even get the loan to buy a property, but upon registration of the property, the Deeds Office will pick up on the Sequestration Order and will not continue with the registration of the immovable property.
You will not be able to make any debt whilst your Financial Economical Status is Insolvent.
