SEQUESTRATION & REHABILITATION MEANING

According to South African law, Sequestration and Rehabilitation are two processes that operate in tandem. It is natural to want to file for Rehabilitation after Sequestration.  But Sequestration and Rehabilitation meaning - what does it all mean and how can I benefit from it?

Here is a brief explanation of what to anticipate when applying for Sequestration and why the Rehabilitation Process after Sequestration is so essential.  What is the meaning is Rehabilitation after Sequestration and why is it necessary?

What is first - Sequestration or Rehabilitation?
Sequestration is the first process, since Rehabilitation comes after Sequestration.  The meaning of both Sequestration and rehabilitation will be discussed in this article.

What is the meaning of Sequestration?
When you apply for sequestration, it means that you declare yourself bankrupt.   By continuing with this process, you will be in a position to start afresh with your finances.  Basically, with a clean slate.  You will be debt free after you've followed the sequestration process. 

Different names for Sequestration:
• Declaring Bankruptcy
• Sequestration
• Insolvency
• Surrender of Estate

Step 1:
Recognizing that you are over-indebted and unable to meet your monthly obligations is the first step toward regaining financial freedom.

What's Insolvency and how do I know if I am a candidate for this process?
Insolvency is defined as the inability to service your debts or being truly Insolvent when your liabilities exceed your assets. Sequestration occurs when the Court intervenes by appointing a Curator to manage your assets and obligations. Creditors will no longer bother you!

Different Forms of Sequestration for private persons:
A person can be Sequestrated either Voluntarily or Involuntarily under the South African Insolvency Law.

Voluntary Sequestration is the Voluntary Surrender of your Estate to the Master of the High Court, who will then appoint a Curator to assume control of the entire estate under the governance of the Insolvency Act 24 of 1936.

A short description of Involuntary Sequestration?

Other names:
• Forced Sequestration
• Unfriendly Sequestration
• Involuntary Sequestration

Involuntarily Sequestration is the outcome of a creditor's application.


The definition of Rehabilitation after Sequestration?
"Rehabilitation" refers to the legal process by which an Insolvent (a sequestrated individual) is released from the legal consequences of being an Insolvent and restored to the legal position of a creditworthy consumer (a "solvent"). The Insolvency Act regulates the procedure. (Act 24 of 1936).

Affects of Rehabilitation after Sequestration
Rehabilitation after Insolvency enables you to re-enter the economy and leave the past financial disadvantages behind you by clearing your credit records.

How long after Sequestration can I apply for Rehabilitation?
Approximately three to five years from the date of declaring bankruptcy, you may petition the Court to initiate the rehabilitation of your estate and restoring your credit worthiness.

What if I do not Apply for Rehabilitation after Insolvency?
You will only be rehabilitated after 10 years, from date of Sequestration when Automatic Rehabilitation takes place.

Advantages of Rehabilitation after Insolvency?
The Sequestration has been ended.

The Insolvent's debts that were due prior to the Sequestration and did not arise because of any fraud by the Insolvent are cleared; and

The Insolvent is relieved of any disadvantage caused by the Sequestration Order.

The Process
We will submit a request to your Curator to have your Final Liquidation & Distribution account verified by the Master of the High Court before the process starts.  

If the Final Liquidation and Distribution account have already been confirmed by the Master of the High Court, we will obtain a copy of these documents to ascertain whether you qualify for Rehabilitation after Bankruptcy. 

How long after Declaring Bankruptcy can I Apply for Rehabilitation?
The Insolvency Act allows for Rehabilitation from six months to Five years after date of Insolvency, subject to specific criteria prescribed in the Insolvency Act.

Can an Insolvent Estate have a short fall?
Yes, an Insolvent Estate can have a short fall and therefore we must also clarify with the appointed Curator of your estate whether a contribution was levied against your estate.

How is it possible that there can be a shortfall on a Bankrupt or Insolvent Estate?
When the estate is unable to generate enough funds to cover the estate's administration costs, a contribution is levied against the creditors. The amount of the contribution may differ. The Court will not grant a Rehabilitation Order if the contribution amount must be paid to the estate.

Who needs to pay the contribution amount?
The Contribution amount will be paid by the Applicant (Insolvent) applying for Rehabilitation.

Drafting of the Court Documentation:

To persuade the court that you qualify for Rehabilitation after Sequestration, an Attorney will prepare the court documentation.  

No, you don’t need to attend court on the Application date. The Attorney and / or Advocate will attend court on your behalf.

What happens once the Rehabilitation Order is Granted?

Once the rehabilitation order is granted, your name will be cleared at the different credit bureaus, allowing you to apply for credit once again.

In Conclusion: 
Taking the above into consideration 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 a reputable company that will provide you the correct information pertaining to your financial situation.

Cure Debt – Your Debt Specialist, don’t wait until it’s too late, CALL NOW!

What distinguishes CureDebt from other NCR-accredited debt relief practitioners in South Africa?
We are concerned about your well-being and the impact this process will have on you. We understand that if you decide not to continue with the process, we will lose money. But for us, it is not about the money. We are passionate about helping people regain their financial freedom and live a debt-free life.

WHAT CURE DEBT OFFERS
To better serve our clients, we collaborated with a group of professionals who specialise in different fields. With over a century of experience between them, we can boldly state, "We are the best in the business of helping people and