CAN YOU BECOME DEBT-FREE THROUGH THE VOLUNTARY SEQUESTRATION PROCESS?
Having to pay for years on end for a single business mistake or an unforeseen expense that drove your finances into the red does not seem fair. As an alternative, consider the voluntary sequestration process.
It is a legal process whereby you can, after you have exhausted all other avenues for a workable solution, apply to be declared insolvent. This is the solution to choose if, after selling your assets to pay off debts, you will still face a massive shortfall and thus years of debt. Indeed, you may not sell off assets set as security for debts to pay off some of the creditors and not all, as you are not allowed to benefit one creditor over another.
SEQUESTRATION HELP IS AVAILABLE
If you are in the unfortunate position of being bankrupt and need help in filing for voluntary sequestration, you can make use of our legal expertise. We help to stay legal proceedings by creditors and to stop debt collectors from harassing you.
By making use of the sequestration process, you do not have to keep paying creditors for years to come. In many instances, creditors sell their debts and the attorneys that have taken over the debt books then put pressure on debtors to sign agreements for repayments. The debtors then first have to pay debt collection commission, legal fees, and interest before they ever get to pay off the debt. It can take years to pay off even the smallest of debts. Do not become one of the statistics. Rather follow the sequestration process if you are insolvent.
Our attorneys help to ensure an impartial party to liquidate your assets and to ensure distribution of the proceeds among the creditors according to the requirements of the Insolvency Act. Our attorneys also assist where creditors oppose the sequestration process or are unwilling to consider restructuring of debt through more affordable instalments.
The lawyers furthermore help you to become debt-free, and thus give you the opportunity to start fresh without mountains of debt to stress about.
HOW THE SEQUESTRATION PROCESS WORKS
Upon receiving your information regarding income and expenses, in addition to information on your total debts and assets, we review your financial situation. If it is at all possible to solve the problem in another way, we advise you accordingly. Once we have explained the benefits and disadvantages of sequestration and how the process works, you can decide whether or not to proceed.
Should you decide to proceed, the sequestration process commences. This is if you qualify for voluntary sequestration as, by law, you must really be insolvent. Our attorneys publish the notice of intention to voluntary sequestrate in the Government Gazette and relevant papers. This ensures that no creditors can take any further legal action against you. Legal proceedings are thus stayed.
You stop all payments to creditors immediately, and do not try to sell any assets or move such as assets, as to not form part of the estate. Never hide assets and do not lie about any of the debts or assets.
Once the notice has been published, we draft your voluntary sequestration application. Our attorneys bring the application to the High Court or a local Magistrate’s Office. You do not have to attend the hearing. The Court sets the date for the final hearing and if the order is granted, the Master of the High Court appoints a trustee to oversee the sale of assets and distribution of proceeds to the relevant creditors.
Once the creditors have received their benefits, the trustee prepares the final liquidation account. Once all requirements are met, you can apply for rehabilitation. The sequestration process is complex, but we work with you throughout to help minimise the effects. With our assistance, you can get through the sequestration process with minimum frustration and become debt-free.
Keep in mind that you hand over control over your financial estate to a trustee. You cannot enter into any form of credit agreement or sale of assets without the written permission of the trustee. You cannot be a director of a company and you cannot hold certain employment positions. Once you are rehabilitated, your credit record indicates rehabilitated for a period of five years.
Though it does have drawbacks, the voluntary sequestration process is a solution to excessive debt. Give us a call to help you determine if it is a suitable solution for your debt problems.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Call on our attorneys for legal advice, rather than relying on the information herein to make any decisions. The information is relevant to the date of publishing.