HOW WE CAN HELP YOU TO BECOME DEBT-FREE THROUGH VOLUNTARY SEQUESTRATION
You do not have to go through life as a slave to debt. Though a consolidation loan may seem like the solution, if you are not able to cover the complete debt with such a loan, it will only create more problems and it will not be long before the interest on the loan causes you to default on payments. We can help you to become debt-free through voluntary sequestration. Yes, it is an expensive process, but if your debt has spiralled out of control, you need a drastic step to prevent legal action against you and the loss of all your assets.
When you can you sequestrate?
We can help you to become debt-free through voluntary sequestration if your expenses far exceed your income and you have immovable property of which the sale on auction can provide for sufficient benefit to the creditors. With sequestration, the sale of assets must realise sufficient funds to pay off the bond, curator costs, and legal fees, as well as ensure 10 to 20 c (depending on the particular situation) out of the rand to the creditors. In this way, we can help you to become debt-free within a relatively short period.
You can apply for rehabilitation within one year of the final distribution account submission by the estate curator to the Master, if the requirements are met. We can help you to become debt-free also when you do not have immovable property, but have sufficient assets to ensure the sale thereof by the curator can provide for enough funds to pay the legal fees, curator costs, and 20 c out of the rand to the creditors. Another alternative is to surrender your estate, and by means of a cash lump sum pay the cost of sequestration and the benefit to the creditors.
What next?
The first step is to determine whether your estate is insolvent. Make an appointment with our team of attorneys to help determine whether you qualify for sequestration. You do not have to visit our offices. The process can be set in motion through electronic communication. To speed up the assessment, provide us with a list of expenses, debts, and income. Also provide us with a list of assets. We will work with you to draft the monthly income and expense report. Once it is determined that you qualify for sequestration, we will set the application process in motion. It involves an application to court, notification regarding the intended sequestration, and obtaining of a provisional order.
The creditors will have time to object to the sequestration and, if no objections have been received by the return date to court, the application will be awarded. You do not have to appear in court, as we will handle the process on your behalf. The court will appoint a curator over your estate. The curator will handle the sale of assets and distribution of benefits to the creditors. Once the final distribution account is submitted to court, the sequestration is over, and you can, within one year from that date, apply for rehabilitation if the requirements are met. As such, we can help you to become debt-free and rehabilitated.
It is possible to negotiate to buy back from the insolvent estate assets such as your vehicles, furniture, and equipment. You will not lose your pension and all garnishee orders against your salary will be stopped. The creditors cannot take any further legal action against you and the interest on debt is frozen. In addition, your children’s assets are not included, and the same goes for tools of trade. Cellphone and service contracts, if paid up to date, stay in place.
Get in touch to find out how we can help you become debt-free through voluntary sequestration.
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 publication – January 2018.