Sequestration

THE PROCESS AND WHAT IT ENTAILS

The Terminology:

Sequestration is the legal term, for what is known as: ‘Declaring Bankruptcy’ in layman's terms. Other terms include ‘Insolvency’ and ‘Surrender of Estate’.

What is Sequestration?

Sequestration is a High Court Application, brought by an Attorney in co-operation with an Advocate on behalf of the debtor. Once a Sequestration Application is successful / granted in the High Court of South Africa, up to 80% of your debt will be written off.

Who can Apply for Sequestration?

Every individual is entitled to apply, to the High Court, to Surrender his/her Estate on a voluntary basis. In such an application he/she/they must convince the Court that is will be to the Creditors’ advantage of the Court grants the Application for Sequestration.

This remedy is highly effective, and the individual can get rid of up to 80% of his debt.

How Do I Know if I am a Candidate for the Sequestration Process?

If your liabilities exceed your assets, you are a good candidate for Sequestration. There is however a certain criterion that need to be adhered to, therefore we always suggest that potential clients complete a Debt Assessment Form to enable us to do a FREE Debt Assessment and arrange for a FREE Consultation with one of our Debt Relief Specialists to analyze your financial situation and revert with the best possible solution for you.

THE PROCESS

1. The Debt Assessment 

The Debt Relief Specialist will do a Debt Assessment to ascertain if the Debtor qualify to undergo the Sequestration Process and if there is no other alternative than an Insolvency Application.

The Debt Relief Specialist will consider different Debt Relief options available in South African Law and regulated by the National Credit Regulator (NCR).

During the consultation the Debt Relief Specialist will explain the process, costs, pros, and cons and the process to the Debtor.

It will be beneficial for you to find a Debt Relief Specialist and not only a company specialising in either Debt Review or Sequestration but all possible Debt Relief Remedies.

2. What will the Debt Relief Specialist require from me to do the Assessment?

The Debt Relief Specialist will furnish you with a Debt Assessment Form to complete, which in turn, will furnish the Debt Relief Specialist with all the information he/she will need to do a thorough Assessment of your financial situation.

3. The Debtor makes the decision to continue with the Sequestration Process.

After payment of the fees, the Attorney of Record will receive instruction to continue with a Sequestration Application on behalf of the debtor and will continue with the process as prescribed by the Insolvency Act, Act 24 of 1936 as amended.

4. Do I have to attend Court on the Date of Application?

No, you don't have to attend Court on the Court date. The Advocate will present your matter to the Court.

5. How will I know if my Sequestration Application was Successful?

The Attorney of Record will convey the outcome of the case in writing. As soon as the Sequestration Order are available, it will be sent to the Insolvent.

6. I’m Insolvent, what now?

The court application was successful, and you are officially Insolvent. The Master of the High Court will appoint a Curator that will deal with the Insolvent Estate.

Creditors will have the opportunity to proof their claims against the Insolvent Estate. Once all claims have been proven against the Insolvent Estate, the estate can be finalised and the confirmed by the Master.

Whereafter the Insolvent can contact a Debt Specialist to assist him/her/them with an assessment to ascertain when he/she/they will qualify for Financial Rehabilitation after Insolvency.

7. Approximately how long will the complete process take to be finalised?

The process from date of sequestration can take anything from three to five years, dependent on how soon after date of Sequestration the Insolvent Estate have been finalized.

PROS & CONS OF SEQUESTRATION

Pros of Sequestration

Rid yourself of up to 80% of your total debt.

Upon publication of your intention to Surrender your Estate in the media, all legal action is stayed.

No more Garnishee orders against your Salary.

No new Garnishee Orders can be submitted to your employer whilst under sequestration BECAUSE creditors must proof their claims against the Insolvent Estate and therefore all Garnishee Order Deductions will be ceased upon receipt of the Sequestration Order.

Judgements form part in the Sequestration Application.

No more individual payments to creditors because all creditors must proof their claims against the Insolvent Estate. Therefore, the disposable household income increases, and you will Start Living Again.

NO MORE HARASSMENT FROM CREDITORS because they’re referred to the Curator to submit their claims against the Insolvent Estate.

The debtor can negotiate with the Curator to buy back the movable assets from the Insolvent Estate. Curators welcome a buyback agreement because second hand movable assets do not have a great monetary value and therefore you will not lose your movable assets.

CURE DEBT will be by your side every step of the way.

Cons of Sequestration

You will not be able to be a Director of a Company or a Member of a Closed Corporation.

You will not be allowed to be a Trustee on a Trust.

You will have a tainted Credit Report.

You are not allowed to make any new debts whilst Insolvent.

COSTS

Costs will be discussed during the FREE CONSULTATION after the DEBT ASSESSMENT have been finalized.

A quotation will be furnished, where after the debtor will be afforded the opportunity to accept or decline the quotation.

The debtor will not be liable for any costs before the quotation have been accepted.

Complete the FREE DEBT ASSESSMENT and BECOME DEBT FREE TODAY!!!