Are you struggling to pay your debt? Do creditors harass you? Are you afraid that you will lose all your assets and still have to pay debts for years to come? You are not alone. Millions of South Africans are in financial trouble. However, debt rehabilitation help is available.

Keep in mind that it is far easier to get into financial trouble than it is to get out of it. There is no instant solution. You cannot just have all your debt written off. There is more to it. Voluntary sequestration is a form of debt rehabilitation help. At first, it may not seem like the perfect solution, because you will lose some of your assets and will be limited regarding holding certain government positions, or the directorship of a company. However, if you do have sufficient assets to ensure that the sale thereof by a curator on auction can pay for the sequestration costs, legal fees, and provide for a minimum of 20 c out of the rand for each creditor, it is a suitable form of debt rehabilitation help.

How It Works

You formally apply to court to be declared bankrupt. However, you do not have to appear in court, as experienced attorneys will represent you. The first step is to consult with our attorneys, who will help you determine whether you qualify for sequestration. If not, there are options such as debt review or administration to consider, best discussed with our attorneys. To qualify, you must be able to prove that your liabilities exceed your assets and that your income is not enough to pay the creditors. If you have substantial debt that cannot be repaid within five years when undergoing debt review, voluntary sequestration may be the debt rehabilitation help you are looking for.

The attorneys will help you draft the affidavit and will publish the notice of intention to sequestrate and submit the notice to Master of the High Court. The Court will grant the provisional sequestration order and set the matter aside to be decided within one month. At the return date, if no objections are lodged, the Court will grant the final order for sequestration. Once the notice of your intention to sequestrate has been published, your creditors will no longer be able to demand payment from you. Indeed, you will cease all payments to the creditors to prevent one from benefitting to the disadvantage of the others.

The Court will appoint a curator to oversee the sale of assets and distribution of the benefits to the creditors. Once completed, and the final distribution account is submitted by the curator, you can, if all requirements are met, apply for rehabilitation. You will be debt-free and able to start fresh. If you do not apply for debt rehabilitation after sequestration, you will remain under sequestration for a period of ten years, whereafter you will automatically be rehabilitated. We are here to help with voluntary sequestration, which is the process to help you become debt-free. In addition, we provide debt rehabilitation help to change your status from “sequestrated” to “rehabilitated”.

Do Not Believe the Myths About Sequestration

Unlike what many people think, you do not have to own a house to qualify for sequestration. Speak to our attorneys about your options for voluntary sequestration without fixed property. If you own property, it will form part of the insolvent estate. You will get sufficient time to find a new abode once the home is sold on auction. No additional interest can be added to the debt. As such, you will not have to deal with debt becoming more, as is often the case when entering into repayment agreements with debt collection companies. Your children’s assets will be safe, and your tools of trade and pension be protected as well. In addition, we can assist in negotiating exclusion of the furniture from the estate or negotiate for the furniture to be written up, but not removed from your home. You will then get the opportunity to buy back the furniture at the low auction value.

Do not let debt keep you from moving forward with your life. Get the debt rehabilitation help you need to start afresh. Make an appointment with our attorneys to discuss the various options available.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. You are advised to consult with us before using/relying on this information. Information is relevant to the date of publishing – March 2018.