REQUIREMENTS FOR VOLUNTARY SEQUESTRATION | LEARN HOW TO BE DEBT-FREE

The article discusses the requirements and benefits of voluntary sequestration in South Africa.
Voluntary sequestration is an official process in which an individual petitions the court to declare their estate insolvent. Nevertheless, this is a last resort. Prior to voluntary sequestration, we would explore alternatives to the process to ensure that the application exhausted all other means of repaying their debts.

Debt can be a crippling burden, impacting every aspect of a person's life, from their mental health to their ability to plan for the future. In South Africa, where debt levels are particularly high, many individuals struggle to find a way out. One effective, but often misunderstood, option is voluntary sequestration. This legal process can provide a lifeline for those drowning in debt, offering a fresh start and a clear path to financial recovery.

Voluntary sequestration is also referred to as:
1. Voluntary Surrender of Estates
2. Voluntary Insolvency
3. Voluntary Bankruptcy

The terminology mentioned above refers to the same concept, albeit under different names. It's the same process, and the same benefits apply.

Why Consider Voluntary Sequestration?
1. Debt Relief: The primary benefit of voluntary sequestration is the discharge of debt. Once the process is complete, the individual is released from their debt obligations, allowing them to rebuild their financial life without the constant pressure of creditors.

2. Legal Protection: From the moment a sequestration application is filed, creditors are prohibited from taking legal action to recover debts. This protection can provide immediate relief from harassment and legal threats.

3. Structured Process: Voluntary sequestration follows a clear legal framework, ensuring that all parties are treated fairly. This structured process can be less stressful than informal debt negotiations or other forms of debt relief.

4. Fresh Start: By liquidating assets and paying off as much debt as possible, individuals can start afresh with a clean slate. This opportunity to reset can be invaluable for long-term financial health and stability.

Is living a debt-free life truly beneficial? What sort of question is that? Sequestration on a voluntary basis is a very effective way to become debt-free immediately. It is the most affordable option. Compared to other debt relief solutions.  Voluntary insolvency takes the least amount of time to achieve financial and credit rehabilitation.

ADVANTAGES OF VOLUNTARY SEQUESTRATION
1.  The applicant(s) doesn’t need to attend the court hearing.
2.  The majority of the debt will be written off.
3.  Rehabilitation following voluntary sequestration can occur as soon as six (6) months after the sequestration           application's approval. Talk to one of our experts to determine if you adhere to the qualifying criteria.
4.  Pay only legal fees upfront, in affordable instalments.
5.  You won’t lose any of your movable assets. Once appointed, you'll be able to negotiate with the appointed               curator to buy it back from the insolvent estate.
6.  No creditor will be able to garnish your salary.
7.  All legal action will cease once the notice of voluntary surrender appears in the government gazette.
8.  You’ll have more disposable cash because you no longer need to pay the debt. The moment you start the                 process, you stop paying your debt.

Alternative debt relief solutions
Debt Review:
This process is a legal one, governed by the rules and regulations stipulated in the National Credit Act. This is applicable only to debt in your personal name.

In short, the process involves negotiating an alternative payment plan with the creditors on behalf of the debtor.

Monthly instalments are reduced by as much as fifty percent (50%) each month. Your assets remain intact, and the monthly payment plan for your liabilities aligns with your affordability at the time of application.

Other terms used to market debt review are debt consolidation and debt mediation, but in fact, the correct terms are debt counselling and debt review.

This process is ideal if you have immovable property and vehicles under finance agreements that you don't want to lose.

Administration order:
An administration application is much like a debt review application. But with an administration application, the debt threshold is R50 000.00 (fifty thousand rand).

This means that the total debt, excluding vehicle and home finance, must not exceed R50 000.00 (fifty thousand rand). This process does not include vehicle and home financing, and you must pay these instalments above the administration order amount to avoid repossession.

CureDebt is the leading company in South Africa offering a comprehensive range of debt relief solutions to help individuals who are struggling with debt. Our team is dedicated to providing assistance to those who are over-indebted and are looking for ways to become debt-free, all within the boundaries of South African law.

COSTS
An evaluation of your financial situation is free. Obviously, you'll need a consultation explaining the different options available to you, and this consultation is also free. We will also explain the cost of the processes and provide you with a quotation, allowing you to decide whether you wish to proceed with any of the debt relief solutions you qualify for.

Easy payment options are available.
Given your current financial situation, we recognise that paying the full cost of the chosen debt relief solution immediately may not be feasible. To accommodate this, we offer convenient payment plans. There's no reason for you to keep struggling financially. We can help you eliminate your debt and start living a debt-free life again.

It's worth mentioning that the criteria for applying for voluntary sequestration vary based on the circumstances in question. It's beneficial to speak with an NCR-accredited debt solutions expert before proceeding with sequestration. They can assess your specific circumstances and provide advice on whether sequestration is the best debt solution for you.  At Cure Debt, all assessments are FREE.

Why cure debt?
Cure Debt is the ultimate debt relief solution to your unique debt problem.  With a proven track record, we are proud to say that we can help you become debt-free.