HOW SEQUESTRATION ATTORNEYS HELP YOU COMPLY WITH IMPORTANT REQUIREMENTS
You need help from experienced sequestration attorneys because the bankruptcy application is a legal process. They help determine if you qualify for voluntary sequestration, handle the court application on your behalf, and make sure the formalities are met.
SEQUESTRATION MUST BE TO BENEFIT OF CREDITORS
Though voluntary surrendering of your estate helps you to get rid of up to 80% of your debt in a short period, the creditors must get some benefit from the process. The court will only grant the application for voluntary estate surrender if you are proven insolvent and the sale of assets on auction can generate enough money to pay the minimum required benefit to the creditors, the administration process, and legal expenses. The insolvency lawyers assess your financial status, including debts owed, income, assets, and ability to pay the creditors. Even if you are under debt review, you can still qualify for voluntary sequestration, subject to meeting the applicable requirements.
Insolvency attorneys understand the requirements and can advise you on how to protect your spouse’s assets (if you are married out of community of property). The first step when dealing with the pending judgments from creditors is thus to seek legal guidance from insolvency lawyers. Apart from representing you in court, they handle formalities for compliance with the law for voluntary sequestration. They draft the statement of affairs, publish the notice of your intention to apply for bankruptcy, notify SARS, creditors, and the Master of the Court, and submit the application.
Once the notice of intention to voluntarily sequestrate is published, you must cease payments to creditors. They must communicate with your attorneys instead of you. You are protected from further legal action from the creditors. Once the sequestration order is given, the court appoints a trustee to oversee the distribution of assets. The attorneys negotiate on your behalf to have your furniture written up as part of the insolvent estate, but not removed from your house. They negotiate for buying back the furniture at the low reserve auction price. This enables you to keep the furniture.
PURPOSE OF THE NOTICE OF INTENTION TO SEQUESTRATE
The notice informs the creditors of your intention to apply for bankruptcy and provides them with time to oppose your application. Your sequestration attorneys publish the notice in the Government Gazette and relevant paper not more than 30 days before and not less than 14 days before the date of the bankruptcy court hearing, so creditors have time to examine the statement of affairs signed by you in front of a commissioner for oaths. Failure of notifying relevant parties in the required time can lead to failure of your application for bankruptcy. The insolvency lawyers see to it that each of the creditors receives a copy of the published notice and provide proof of the delivery. They send a copy to SARS.
Given the seriousness of non-compliance with formal directives and the implications for your application, you can see why it is essential to ensure compliance throughout the bankruptcy-application process. Get in touch with our team of sequestration attorneys to help you prepare and submit the application.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Call our attorneys rather than relying on the information herein to make any decisions. The information is relevant to the date of publishing: October 2019.