THE SEQEUSTRATION PROCESS EXPLAINED

People struggling with debt want to learn more about the sequestration process, but they're not sure what it entails. In this article, "The Sequestration Process Explained," we provide an easy-to-understand overview of the sequestration process.

Assessing the client's financial situation:
First and foremost, it is important for the NCR-accredited Debt Relief Expert to determine whether the over-indebted individual qualifies for sequestration. Furthermore, they need to identify the type of sequestration that would have the greatest chance of success. 

Obligation-free debt assessment:
Kindly fill out the individual debt assessment form to provide that particular debt expert with the necessary details to proceed with the obligation-free assessment process.

Following the results of the assessment,
A CureDebt debt relief expert will get in touch with you to schedule a meeting. During the consultation, he or she will explain the sequestration process and provide you with a quotation and strategy for the most cost-effective method to proceed, should you choose to do so. 

What if I don't qualify for the sequestration process?
If you do not qualify for the sequestration process, he or she will present alternative debt relief solutions and assist you with the quote.  At present, CureDebt stands out as the sole company accredited by the NCR, offering a comprehensive range of debt relief solutions in accordance with South African law.

Why do you need a meeting with an expert to understand South African debt relief solutions?
It's crucial to have a clear understanding of the various debt relief solutions at your disposal before making such an important decision.  Because it is critical that you make the best decision possible, you will be able to ask questions and receive answers from our knowledgeable staff with easy-to-understand explanations.

A brief explanation of the sequestration process:
Sequestration occurs when a person or trust declares bankruptcy. By filing bankruptcy, the public assumes all debt will be eliminated. However, that is incorrect. 

Will the debts be written off?
Debt will be written off, but only up to 80%. However, the application for sequestration must be filed in the creditors' favour rather than the insolvent person's, per the Insolvency Act.

What is the cost of a sequestration application in South Africa?
Voluntary sequestration applicants must pay their application fees. Understand that this is a High Court application involving lawyers and advocates. Therefore, no service provider will do this application for free.

Is it possible for another individual to sequestrate you, or is voluntary sequestration the only method permitted by South African law?
There are multiple approaches to submitting an application for sequestration. One such method is to file for compulsory sequestration against a person or trust that has committed an act of insolvency and owes you money. It goes without saying that a creditor to whom you owe money may also pursue sequestration proceedings against you. The term for this process is compulsory sequestration.

Cost of compulsory sequestration:
Because of the difference in how they are carried out, the costs of forced sequestration are much higher than those of voluntary sequestration.  The person applying for forced sequestration pays for the costs that come with it.
 
ASSETS IN THE INSOLVENT ESTATE:

Movable assets include furniture, trucks, trailers, and caravans. Basically, anything that has been paid in full can be transported from one location to another.

Immovable assets include anything that cannot be moved elsewhere, such as the homes and offices registered in your name at the Deeds office in South Africa.

The next question that everyone typically worries about is, "What will happen to my possessions if I go bankrupt?"
Insolvents typically have the option of purchasing back their movable assets from the insolvent estate without having them seized from their place of residence. 

What happens to my real estate if I file for bankruptcy?
Sadly, regardless of its payment status, all immovable property will be sold as an asset of the insolvent estate and will not be able to be bought back by them.

What is the waiting period for applying for rehabilitation after sequestration?
Usually, individuals dealing with insolvency can seek rehabilitation after a period of six months from the date of bankruptcy.  Whether or not they adhere to the prescribed rules and regulations of the Insolvency Act will determine their eligibility.

Welcome to CureDebt, your trusted NCR-accredited solution for debt relief in South Africa.
We believe this explanation of the sequestration process in simpler terms helped you understand the basics of insolvency. We strongly suggest reaching out to us for a free assessment and consultation with one of our insolvency experts. Discover the life-changing feeling of being debt-free. 



Disclaimer: This article is for informational purposes only and does not constitute legal advice. Call on Cure Debt rather than relying on the information herein to make any decisions. The information is relevant to the date of publication.