Who Determines Voluntary Sequestration Fees?
Though voluntary sequestration costs are high, the Law Society prescribes the rates associated with the process. People often ask why lawyer’s fees are so high related to sequestration, but one has to remember that it is a complex process involving court application and investigations. It is, however, recommended that you compare the voluntary sequestration legal costs with the fees prescribed by the Law Society. If the lawyer’s fees are higher than prescribed, you have the right to question this and should discuss the matter with the attorney.
Considering the time that the attorney has to allocate to each sequestration application, the resources used, and the expertise offered, the attorney’s fee is normally reasonable. You need an attorney to assist with the process, and considering how many pitfalls you must avoid during this process, having an attorney to handle negotiations, give guidance, and handle the application and litigation process certainly helps to reduce the pressure, and serves to minimise the effect of the sequestration on your life.
The attorneys studied for several years and their teams include paralegals, researchers, and support personnel. They stay up to date with legislative changes and they have, over the years, gained a lot of experience, which is a valuable asset. They deliver a professional service and you, as the client, benefit from their expertise.
The fees related to voluntary sequestration as prescribed by the Law Society have been calculated to cover the expertise of the attorneys and the direct costs involved. The figures are thus based on actual calculations and are accurate. The attorneys do the necessary research, communicate with relevant parties, draft the necessary documents, submit these, publish notifications, do the court application, and represent your financial interests in opposition to creditors.
The court will only allow voluntary sequestration if the costs of the sequestration can be covered and if the creditors can receive the benefits they are due. As such, you must have an income, since you must also be able to pay off the balance after the sale of assets, and the benefits realised from this. In addition, the court will only approve the sequestration if you have sufficient assets that can be sold to ensure benefit to the creditors if you don’t have immovable property that can form part of the insolvent estate.
When you make use of an insolvency lawyer, the attorney will advise you regarding assets that are excluded from the sequestration, such as your tools of trade and children’s assets. The attorney will also negotiate to have your furniture bought from the estate and thus help you to retain, for instance, heirloom furniture. In addition, in some instances, the attorney may be able to negotiate that one of your vehicles be bought from the estate, helping you to keep at least one vehicle for transportation.
You may have questions such as how long you will be able to stay in the house after it has been sold and what about the assets that are in your spouse’s name? These and many other questions can be answered by the attorneys.
Make an appointment with our lawyers who will discuss the voluntary sequestration costs and thus help you to make an informed decision.