Some of the questions you may have regarding voluntary sequestration to become debt-free are briefly answered below.

Can a creditor attach my salary or take part of it if I voluntarily sequestrate?

No. The appointed trustee, however, can attach part of your monthly salary for payment of the outstanding amount after the sale of assets and distribution of benefits to the creditors, but will still leave you with enough money to pay for your monthly living expenses. In most instances, it is possible to negotiate for the exclusion of your salary from the insolvent estate.

I want to become debt-free, but don’t have immovable property or enough assets to ensure a minimum of 10 to 20 cents out of the rand to the benefit of creditors. Will the court grant the sequestration if I still earn a good salary?

No. You need to have enough assets, which include cash, money in the bank, investments, and movable and immovable property to ensure that the sale thereof will realise sufficient benefit to the creditors. In this instance, you can apply for debt review as a debt management solution.

What about my tools of the trade? 

The trustee will not include your tools of the trade in the insolvent estate unless you owe money on the equipment. In that case, the equipment doesn’t belong to you and we will need to negotiate to buy it back from the insolvent estate at the auction value. If you are, for instance, a DJ and have mixers and lights that have been paid for in full, these tools will be excluded. Likewise, as a land surveyor, your GPS and total station will also be excluded.

Will the trustee sell my jewellery?

You don’t have to be concerned about the inherited jewellery unless the jewellery has substantial value. We recommend speaking to our attorneys about items such as jewellery and furniture that you want excluded or want to buy back from the insolvent estate.

If I don’t have the money to pay the lump sum for the remaining 20% of the debt, will the court decline the application for sequestration?

No, but you will need an income to ensure that we can negotiate instalments for up to 24 months to pay off the remainder.

What happens to the furniture in my house?

Though the furniture forms part of the estate, you don’t have to lose the items. The trustee will have the furniture appraised, but the items will not be removed from your house. We can then negotiate for you to buy it back from the estate at the reduced value.

What next? 

Call us for professional assistance with the process if you want to become debt-free and qualify for sequestration.