Many myths surround sequestrations and becoming informed about the topic will help you make an informed decision as to whether sequestration is the best debt solution for you. We have explained sequestrations by means of answering some of the frequently asked questions on the topic below.

Can I still emigrate or at least travel overseas if I have been sequestrated?

Yes, you still qualify for a visa and thus don’t have to be concerned about having to postpone your travel plans. You can also immigrate to South Africa if you have been sequestrated in another country.

I have been sequestrated, but want to start a business. Since I cannot be a director while under sequestration, should I start the business in another person’s name?

It is certainly not advised, since nothing prevents the person from taking full control of the business, leaving you without your valuable investment.

Will my cheque account be closed if I am sequestrated?

No. As long as your bank account stays in credit, the financial institution shouldn’t have a problem. However, you will not be allowed to get a credit card or open a current account after sequestration.

Sequestrations explained by consultants have not helped me to understand whether I can apply for voluntary sequestration when under debt review; please help.

Debt review is also a debt management solution and should you find that it is impossible for you to get out of debt review within a reasonable period because of your home loan, you can, for instance, apply for sequestration. We will assist in applying to the High Court for the setting aside of the debt review, which will then make it possible to apply for the sequestration.

What happens if I failed to list a creditor and didn’t notify them about my intention to apply for voluntary sequestration?

The law stipulates that you must list all known creditors. If you have truly forgotten, you still need to notify the creditor about the situation and may also need to apply to court for the oversight to be excused. There is no guarantee that the court will do so. We recommend discussing the issue with our attorneys as it can be a complicated matter. If the creditor was not known to you at the time, the issue will be less complicated since a notification must have been published in the Government Gazette and local papers in addition to the registered letter delivered to each of the creditors.

Will I lose my vehicle if sequestrated?

The answer is yes if the vehicle was bought using financing through the hire purchase method. In this instance, the vehicle will become part of your estate. The answer is not necessarily yes if you bought it through a lease agreement. In this instance, it is possible to negotiate with the creditor for allowing ongoing payment and to give permission for you to keep using the vehicle. If you have bought the vehicle using a rent-to-own agreement method, the vehicle is still the property of the supplier and you will only become the owner when the final instalment has been made. We recommend discussing your particular case with our attorneys to determine whether you will be able to keep the vehicle.

What if my vehicle is paid off – will it still form part of the insolvent estate?

Yes. However, we can negotiate with the appointed trustee to allow for the purchasing back of the vehicle from the estate, which will enable you to keep the car.

Will my pension form part of the insolvent estate?

No, by law the pension cannot be included.

Though we’ve explained some of the issues surrounding sequestrations, you may have other pressing questions. We strongly recommend making use of our expertise in this regard to help you become debt free.