Voluntary Sequestration vs Hostile Sequestration

150 150 Breyten Potgieter

What is voluntary sequestration?

Voluntary sequestration is a process where you are the applicant that brings the voluntary sequestration.

Hostile sequestration and voluntary sequestration?

Hostile sequestration as opposed to voluntary sequestration is a process whereby one of your creditors applies to sequestrate you.

It is almost always better to do a voluntary sequestration as creditors have the normal litigation route which is much cheaper than bringing a hostile sequestration application against you. Creditors will only in very limited circumstances bring an application for your sequestration.

Voluntary Sequestration vs Friendly Sequestration

Voluntary sequestration as opposed to friendly sequestration has more weight to court. In a friendly sequestration your friend is the applicant and he brings a sequestration application against you. The court has the viewpoint that, because your friend does not have to know all the facts, that would be placed before a court in a voluntary sequestration, that a friendly sequestration is not the right mechanism to use, but rather favours a voluntary sequestration.

This is not to say that there is no place in the South African Law for Hostile and Friendly Sequestrations. No, they have their place and they are good mechanisms if the litigation process fails.

In short, make an appointment and speak to us about voluntary sequestration.

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This info piece on voluntary sequestration was written by:

Breyten Potgieter from Danie Potgieter Attorneys.

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