Voluntary Sequestration
Application for Voluntary Sequestration (South Africa)

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Voluntary sequestration is an application that is done to the High Court to surrender your estate (assets and liabilities) to creditors in the hands of the Master of the High Court and be declared insolvent/bankrupt. The Master will then appoint a Trustee to take control over the entire estate, whom must realise your assets according to the Insolvency Laws of South Africa and distribute the proceeds to creditors after the administrative costs have been paid.

EFFECTS OF SEQUESTRATION

The effect of a Voluntary Sequestration Court Order is that creditors must claim from the separate insolvent estate / surrendered estate. Creditors can not claim any money from you as their individual execution steps are stopped. The trustee takes control of the entire estate and executes the administrative tasks. This process creates a concursus creditorium whereby the individual creditor’s actions stay and all creditors are handled by an orderly collective collection process administrated by the trustee

EFFECTS OF SEQUESTRATION

The effect of a Voluntary Sequestration Court Order is that creditors must claim from the separate insolvent estate / surrendered estate. Creditors can not claim any money from you as their individual execution steps are stopped. The trustee takes control of the entire estate and executes the administrative tasks. This process creates a concursus creditorium whereby the individual creditor’s actions stay and all creditors are handled by an orderly collective collection process administrated by the trustee

IS VOLUNTARY SEQUESTRATION FOR ME?

Factual Solvency Test

Do your liabilities exceed your assets? You need to determine for what value you can realise assets, if at all. If there is enough equity in an asset that you can sell to cover your debts, then that is what you should do. If however, you do not have any assets or equity in an asset that you can realise, then you will need to consider if your income exceeds your expenses to such a degree that you can eventually get out of debt

Commercial Solvency Test

Do your expenses exceed your income? If your expenses are more than your income, taking into account your normal monthly expenses as well as repayments to creditors, then you will fall further into the debt trap. Some sequestrate because of sureties that were signed or because their income has been reduced or they lost their employment and they can not repay creditors

IS VOLUNTARY SEQUESTRATION FOR ME?

Factual Solvency Test

Do your liabilities exceed your assets? You need to determine for what value you can realise assets, if at all. If there is enough equity in an asset that you can sell to cover your debts, then that is what you should do. If however, you do not have any assets or equity in an asset that you can realise, then you will need to consider if your income exceeds your expenses to such a degree that you can eventually get out of debt

Commercial Solvency Test

Do your expenses exceed your income? If your expenses are more than your income, taking into account your normal monthly expenses as well as repayments to creditors, then you will fall further into the debt trap. Some sequestrate because of sureties that were signed or because their income has been reduced or they lost their employment and they can not repay creditors

Frequently Asked Questions

Get immediate answers to your questions

Frequently Asked Questions

Get immediate answers to your questions

WHAT TO EXPECT?

Debt Free

All creditors claims, prior to date of sequestration, vest in the insolvent estate and regarded as settled at date of rehabilitation

Legal Actions Stayed

Sections 20(1)(b) stops all legal action by or against the insolvent in terms of the insolvency act

Salary and Pension Protected

Section 23(5) read with 23(9) & Section 23(7) protects your income together with any pension benefits that you may receive

Creditors call Us

During the application for voluntary sequestration, you refer all creditors to us and we will correspond with them

Sleep easy at Night

You can sleep easy at night knowing that your matter is being handled by competent attorneys

Start Living Again

The amounts you save on not repaying your creditors can go toward your living expenses and other necessities

Assets vest in Insolvent Estate

Vehicles, property and other assets may vest in the insolvent estate

Can't be Director of Company

According to the companies act, you may not act as Director of a Company

Excluded from Professions

Director, Liquidator, Executor, Sherif, Attorney, Auditor, Estate Agent or Quantity Surveyor may/is excluded

Listed on Credit Bureaus

The sequestration will be listed on credit bureaus and as such you will not be creditworthy

Not Credit Worthy

You may obtain credit during the sequestration period if the credit giver knows that you have been sequestrated

Effects last until Rehabilitation

There is an end made to the sequestration by way of a second application to court for a Rehabilitation order

Get immediate answers to your questions

First hour of consultation is FREE

Get immediate answers to your questions

First hour of consultation is FREE

Debt Options

There are about 12 options in the South African Law if you have debt

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