UNDERSTANDING SEQUESTRATION | EXPERT GUIDE | EVERYTHING YOU NEED TO KNOW

For a variety of reasons, it is important to understand sequestration in South Africa. It is a legal process that will have a significant impact on your short-term financial future. Sequestration will prohibit a person's ability to obtain credit, acquire assets, or be a director of a company. As a result, people battling with debt must have an in-depth understanding of the sequestration process and its implications for the insolvency process.

For those struggling with debt, it is essential to understand the meaning of sequestration in South Africa. While it offers significant assistance to individuals burdened by debt, it may not always be the most suitable option. 

However, this is why you need a professional NCR-accredited debt solutions expert to assist you with a free assessment. Get a comprehensive understanding of the sequestration process in South Africa to make well-informed decisions about your financial situation. Protect your assets and clear the path towards achieving lasting financial stability and freedom.

A detailed guide to the sequestration process
A creditor or an individual facing financial difficulties can initiate the sequestration process in South Africa, which is a legal process. The process involves selling an individual's assets and distributing the proceeds to the creditors. I will guide you through the sequestration process, step-by-step:

1. Step one in the sequestration process involves reaching out to a qualified debt solutions expert for advice. The debt solutions expert will analyse your financial situation and provide advice on whether sequestration is the best option for you.

2. If you choose to move forward with sequestration, you'll have to submit an application to the High Court for a sequestration order. Completing the necessary forms and submitting them to the court will help you get this done.

3. Creditors get notice about the process via an advertisement in the government gazette, one month prior to the court date. Shortly after the advertisement, creditors will be informed in writing by means of registered mail about your intention to voluntarily surrender your estate.

4. The sequestration process is well underway. By now, you would have signed an Affidavit and Statement of Affairs, and the court date would have been scheduled. You're well on your way to becoming debt-free.

5. On the court date, you won't have to be present in court. Instead, an attorney and advocate will represent you at the hearing. You can expect to receive feedback on the same day your application was in court. If you work with a knowledgeable debt solutions expert who is accredited by NCR, you can expect a positive outcome.

6. Great news! The court has approved your application, and you are now officially insolvent. Now we eagerly anticipate the appointment of a Curator, also known as a Trustee, by the Master of the High Court for the Insolvent Estate. All creditors must abandon any legal action and instead submit their claims against the insolvent estate. If no claims are submitted from a creditor, the total debt for that account will be written off.

7. The Master appoints the Curator, giving the creditors the opportunity to prove their claims against the insolvent estate. The Curator will notify the creditors about the scheduled creditor meetings, during which they will have the opportunity to prove their claims against the insolvent estate.

8. The curator has been appointed and will soon reach out to you to discuss your options regarding your movable assets. They will inquire whether you prefer to have them sold at auction or if you are interested in purchasing them from the insolvent estate. 

You'll have the chance to buy back the assets without them ever leaving your premises. Just to clarify, the outstanding balance, which covers roughly 20 to 25 percent of the debt, will be paid off steadily over a period of 18 months. The payment plan also includes the curator and master fees. The payments are interest-free, but the curators have complete discretion in how they choose to deal it.

10. The estate has been finalised by the master who has confirmed the final liquidation and distribution account. Our NCR accredited Debt Solutions Expert is here to help you determine when you'll be eligible to apply for rehabilitation after sequestration.

11. Once the prescribed period lapsed, you can present the rehabilitation application to the High Court, demonstrating the finalisation of the estate. Your debt solutions expert will assist you in clearing your credit record as part of the rehabilitation process once the court grants the order. This will allow you to rebuild your credit name and profile once more.

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.