We want you to make an informed decision regarding the management of your debt situation and, as such, discuss the advantages of voluntary sequestration, as well as disadvantages to consider below.


If creditors harass you day and night, you will be glad to know that once the notice of intention to apply for voluntary sequestration is published, they can no longer take legal steps against you. All existing legal actions for debt collection are stayed until the court has made a decision. As such, you almost immediately get some reprieve from debt collectors.

Another one of the advantages to consider is that all garnishee orders against your salary are cancelled. This is with immediate effect once the notice of intention to apply for voluntary sequestration has been published. You thus immediately have more money available to save up for the legal costs or for a deposit on a rental abode.

The interest on the debt is frozen. As such, you do not have to deal with ever-increasing debt, which never seems to become less because of high interest rates. This enables you to pay off any shortfall within a few months.

Your pension money and any personal injury claim funds are excluded from the insolvent estate. This means that your hard-earned savings for your retirement are safe.

Another one of the advantages to consider is the fact that you can get rid of up to 80% of the debt through the process, as the sale of assets must realise sufficient funds to ensure the process is paid, legal costs are covered, trustee fees are paid, and creditors receive a minimum benefit of 20 cents out of the rand. Considering that, in effect, you pay only R20 000 if the debt total is R100 000, you can understand how it is possible to become completely debt free when you are declared bankrupt.

When your estate is rehabilitated, all debts against the estate are discharged. You are thus debt free, and can start fresh. You can apply for rehabilitation as soon as the timeframe and legal requirements are met.


It is an expensive process, best considered if you have substantial debt. You cannot be a director of a company or managing member of a close corporation when sequestrated. You may not hold certain financially responsible and government positions until rehabilitated. The curator must provide written permission if you want to enter into a credit agreement. A notice is placed on your credit record to warn creditors of your financial status. You are not in control of your financial estate, and lose immovable assets as part of the process.

If, after having considered the advantages and disadvantages of voluntary sequestration, you still want to file for bankruptcy, we recommend contacting our attorneys to help you get started. They can help you determine whether you meet the requirements and explain the process in detail.

Disclaimer: This article is for information 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.