SPECIALIST INSOLVENCY LAWYERS ON COMPLEX SEQUESTRATION ISSUES
Voluntary sequestration is a legal process whereby you can apply to be declared bankrupt. Since it involves a court application, you need the help of specialist insolvency lawyers to handle the process. However, with many legal pitfalls to avoid when dealing with creditors, it is best to seek legal advice from such specialist insolvency lawyers even before you attempt to negotiate better credit terms with your creditors.
We briefly answer some questions regarding sequestration and bankruptcy below, giving you an indication of why you need the expertise of specialist insolvency lawyers.
WHAT IF I WANT TO WITHDRAW THE NOTICE OF SURRENDER?
You may only do so if the Master of the High Court provides written permission for such. If your notice for surrendering your estate has already been published in the Government Gazette, you can withdraw such only after having applied to do so. The Master decides whether the notice was published in good faith and whether there is a legitimate reason for the withdrawal of the notice. A notice of withdrawal must be published in the Government Gazette and the newspaper in which you also published a notice. In addition, you must publish the consent of the Master in the same. The cost for the notice publication is for your account.
WHAT HAPPENS TO THE PROPERTY FROM MY SPOUSE LIVING WITH ME?
If you are married in community of property, both parties are sequestrated. If you are wed out of community of property and your spouse lives at the same address, then the property of your spouse also forms part of the sequestration process until your spouse has proven ownership of the property before your marriage or is able to prove that the property purchased after the marriage belongs to them alone. We recommend speaking to our specialist insolvency lawyers about protection of the assets belonging to your spouse before proceeding with the voluntary sequestration application.
WHAT REMAIN MY RIGHTS AND OBLIGATIONS AS INSOLVENT PARTY DURING THE VOLUNTARY SEQUESTRATION?
Any property that you acquire belongs to your estate. This includes inherited property and money. Your salary is excluded from the insolvent estate and so is your pension money or any money you receive in a personal injury claim. You may only enter into credit agreements with the written consent of the trustee. You may not acquire or be directly involved as a dealer or manufacturer. You may not be a director of a company. You must, if so required by the trustee, submit a statement of all assets received. This must be done in the first week of every month.
You must, at the request of the trustee before the second meeting with the creditors of your estate, help the trustee to the best of your ability in the collection and realising of assets that belong to the estate. We recommend consulting with our specialist insolvency lawyers regarding cooperation with the trustee and how such can affect your application to be rehabilitated. You also need to keep the trustee informed about your residential and postal address. Any changes regarding such must be communicated to the trustee.
HOW DOES THE SEQUESTRATION AFFECT MY LEASE?
The lease is undetermined by your estate’s sequestration. However, the trustee of your insolvent estate may determine the lease by notice. The lessor can claim compensation from your insolvent estate for loss sustained as the result of non-performance in terms of the lease agreement. The trustee must notify the lessor on behalf of the estate, if the intention is to continue with the lease on behalf of the estate. Here too, we recommend seeking legal guidance from our specialist insolvency lawyers regarding the outcome of the sequestration on your rental agreement.
Seek professional help from our specialist insolvency lawyers should you wish to sequestrate your financial estate.
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 as at the date of publishing.