What is Sequestration?
Sequestration is a legal process whereby your assets are sold by a Trustee appointed by the Master of the High Court and the proceeds are used to pay your creditors. After sequestration, your debts are deemed to have been written off.
This means your creditors are no longer allowed to demand payment from you as their rights now vest in the Trustee. You will therefore now be able to live a normal financial life, a debt-free life.
We would advise that you own property, so that it can be realised to show benefit to creditors, however, this is not a requirement.
What are the advantages of Sequestration?
You manage to retain most of your salary and other income while all your debts will be written off.
It won’t be necessary for you to pay any of your creditors after the process has started.
You can retain your privacy as only your creditors will be notified of the situation, not your employer.
You will be able to stay in your home for approximately 6 months without having to pay the bond.
You won’t have to attend Court on the date of your application. Someone will represent you.
Your salary cannot be attached or garnished. All existing garnishee orders must be cancelled.
All legal action is stayed and no attachment can take place after publication of your Notice of Surrender.
After as little as 4 years, you may apply to the Court for a Rehabilitation Order.
You will be able to rent a house or apartment after sequestration.
What are the requirements to be sequestrated successfully?
- You have to comply with statutory formalities.
- If your estate is in fact insolvent.
- If you own a realisable property of a sufficient value to defray all costs of sequestration which will be payable out of the free residue of your estate.
- It must be to the advantage of your creditors.
How long will the process take?
The process normally takes two months from consultation to your application being heard in court.
If you don’t own a house then:
The only difference would be that you would be responsible for the payment of the Total value of your debt incurred to the value of 20c to the R. There is also a possibility that we might be in a position to arrange that the amount could be interest free, even payable over an 18 month period.
Our experts treat clients with the utmost discretion and respect. Allow us to alleviate some of your stress and change your life into a debt free and happy one. Contact us for a consultation and to get the process started.