Are you Over-Indebted and Need Help from Experienced Insolvency Practitioners?

Do you regularly receive calls from creditors and debt collectors demanding immediate payment of debt owed? Are you afraid of answering the phone, because you fear it may be the bank notifying you of foreclosure? Did you know that help is available from experienced insolvency practitioners?

You need to assess your financial situation. Answer these questions truthfully:

  • Are you unable to make credit payments?
  • Will you remain unable to do so over the next few months?
  • Do you have immovable assets?
  • Is your debt extensive?
  • Have you already taken steps to reduce monthly expenses, especially luxuries?

If you have answered “yes” to the questions above, it is time to consider how voluntary sequestration can help you to become debt-free. For this you need to make an appointment with insolvency practitioners to help you assess whether you qualify for voluntary surrendering of your estate. Keep in mind that you must have a monthly income, debt of more than R50 000, and immovable assets. You should be unable to pay the debt, but you should be able to afford the sequestration process.

How the process works

The insolvency practitioners will apply to court on your behalf for the surrendering of your financial estate. The court will appoint a trustee to oversee the selling of the assets and the fair distribution to the various creditors. Once the application has been brought, no creditor can take further legal steps against you and you must stop all payments to creditors. The assets will be sold and the benefits distributed to the creditors. Once all creditors have received their benefits, you can apply for financial rehabilitation.

What is the role of the insolvency practitioners?

The insolvency practitioners will handle the court application on your behalf. It is unlikely that you will have to appear in court. They will also negotiate for the buying back of your furniture from the estate and they will handle all the notification processes. Once you qualify for financial rehabilitation, they will handle the application on your behalf.

Why undergo voluntary sequestration?

If you wait too long before dealing with the mounting debt, the creditors will bring judgement applications against you. The bank may foreclose on your property. You will be without your property and assets and may still be in debt. With voluntary sequestration, you take a proactive step to get rid of 80% of your debt and can pay the remaining 20% in a lump sum or, if so negotiated, through down payment without added interest.

The insolvency practitioners will guide you throughout the process and help to make it as painless as possible. Once you are sequestrated, you are debt-free and can start afresh without the burden of excessive debt.

Disclaimer: Information is relevant on the date of publishing and is not intended as any form of legal advice. Please call on our attorneys for legal guidance rather than relying on the information herein to make decisions – September 2017.