HOW SEQUESTRATION SPECIALISTS CAN HELP: STATEMENT OF AFFAIRS
The statement of affairs forms an integral part of your application to surrender your estate. Seek legal guidance from sequestration specialists to make sure the statement meets the legal requirements. We discuss the statement of affairs, showing how sequestration specialists help meet the formal directives when filing for bankruptcy in South Africa.
WHAT THE STATEMENT OF AFFAIRS INCLUDES
The document includes a balance sheet besides a list of immovable assets, movable property, debtors with their contact information, a list of creditors with their contact information, and information on the accounting books used at the time of your application for sequestration. An explanation of the causes for your insolvency and information about any earlier insolvencies form part of the statement. The final part of the document is an affidavit by you – or the sequestration specialists on your behalf. It states that the information included in the statement of affairs is true and the estimated amounts have been correctly calculated.
The lists of movable and immovable assets include the estimated values of the assets and the mortgages against the assets. Residential and postal addresses and details of debts by debtors must be included in the list of debtors. The statement should indicate the degree of the debts. Information of the creditors, their claims, and securities for the debt you owe must form part of the creditor lists. The insolvency lawyers have to confirm the details but you must supply the names of all the creditors. For movable assets, you must include details of attached or pledged assets.
VALUATION OF THE ASSETS LISTED IN THE STATEMENT OF AFFAIRS
As the debtor, you are not legally obliged to get an independent valuation or appraisal on the assets listed, unless so directed by the Master. If the appraisal is required, the attorneys make use of a sworn appraiser, unless the Master designates an appraiser. If not directed by the court to have an independent appraisal performed on the values stated and you have this performed anyway, it is for your account and it means that the cost of the appraisal does not form part of the sequestration costs. For the voluntary surrender of your estate, follow all court instructions. To this end, our insolvency attorneys help to avoid pitfalls such as unnecessarily having an appraisal done if not instructed to do so.
SUBMISSION OF THE STATEMENT OF AFFAIRS
Another formal directive that our sequestration specialists handle on your behalf is the submission of the statement of affairs in compliance with the process’s requirements. They submit the statement and the supporting documents in duplicate to the Master’s office. If you stay in an area where there is no Master’s office, they submit an extra copy of the statement and supporting documentation to the Magistrate’s office with jurisdiction in the area.
PERIOD FOR INSPECTION
The mentioned statement and supporting documents are available for examination by creditors for 14 days. Once the period has lapsed, a certificate is issued to confirm that the statement has been available for examination according to the notice published for the intention to apply for voluntary sequestration. This certificate also indicates whether creditors have lodged objections. Once issued, it is filed with the Registrar. The application to surrender your estate cannot be heard unless the filing of the certificate has been done. Our sequestration specialists handle the submission process and represent you in court. They answer your questions about the disposal of assets after the notice of your intention to sequestrate has been published, in addition to any other questions relevant to the application process.
Avoid costly mistakes that can hinder the success of your application. Make use of our sequestration specialists to help you file for bankruptcy in South Africa.
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.