Insolvency proceedings are complex. It is thus recommended to make use of sequestration specialists in South Africa as specific laws pertain to insolvencies in the country. We take a closer look at some of the questions about sequestration in South Africa below, helping you to gain a better understanding of the process and how insolvency specialists can help you.


Although the court can require for you to be present, in most instances, the attorneys will handle your voluntary sequestration application to court, including representation. It is thus unlikely for you to have to appear in court.


sequestration lawyer

You will be required to submit an affidavit regarding the reasons for applying to be declared bankrupt together with the statement of affairs. Our insolvency specialists will help with the drafting of the necessary documents to ensure correctness. They will also handle all the necessary submissions. However, you will still have certain obligations once sequestrated, which are briefly discussed below.

  • Attendance of Meetings

You will be required to attend a meeting with the court-appointed trustee. Our sequestration specialists will make the arrangements for the meeting and help you with the process. You will also be obliged to attend a creditor meeting. The meeting will be held at your local Magistrate Court or the High Court. Although this may sound intimidating, it is just the location of the meeting.

If, at any stage, the creditors attempt to interrogate or intimidate you at the meeting, you will have the right to call in sequestration specialists to represent you. The creditor meetings are important, as you know the exact amounts you owe to the creditors and you are in the perfect position to help the trustee identify any non-valid claims by creditors. It is thus in your best interest to comply with the requirement.

  • Contact Information

At no time during or after the sequestration should you leave South Africa or move to another address without letting the trustee know where you will reside. It is also important to update your address with SARS and with your sequestration specialists. It is imperative to keep the trustee informed about any changes in your work, home, email, postal, and phone details.

  • Submission of Income and Expenditure Reports

You are required to submit your monthly income and expense statements to the trustee. The period differs according to the trustee. At minimum, you will be required to do so for three months, but you can be asked to do so for at least twelve months. It is important to meet this requirement, as your cooperation with the trustee will affect your rehabilitation application, which will also be handled by sequestration specialists in South Africa.


Unlike with other areas of the law, when you make a settlement proposal or request to creditors before sequestration, they can use it to bring compulsory sequestration proceedings against you. This is so because it can be deemed an act of insolvency. They can argue that you are unable to pay your debts based on your proposal or request for a lower amount to be paid monthly. It is thus imperative to have insolvency specialists as your representatives even if you want to propose a settlement with the creditors in South Africa.


You cannot be a director of a company or member of a close corporation in which you are involved in the management when you are sequestrated. This may pose a problem for you if it is how you make an income. However, you will not necessarily lose your business. Several factors must be considered, such as whether your business signed surety for you, whether it is solvent, and how it is structured. Note that a sole proprietorship is not the same.

Our insolvency specialists will help you determine whether you will lose your business in South Africa, as you will still be allowed to generate income. It is best not to start a company in another person’s name, as they may pass away, be sequestrated, or enter divorce proceedings. Once again, rather seek advice from our insolvency specialists regarding the right course of action in this regard if you are sequestrated in South Africa.


If you rent a home, naturally, you will be concerned that the agreement will not be valid. However, as our sequestration specialists can explain, if you live in the property and have paid your rent up to date, continue to do so. It is up to the trustee to decide whether or not to terminate the agreement. The trustee must give notice to the effect within three months of being appointed. Failure to do so means the agreement comes to an end.


If you own property, then it becomes part of the insolvent estate. It will be sold on auction and the proceeds will go towards paying for the sequestration costs and the minimum benefits of the creditors. However, it does not mean you will have to leave the home immediately. While the application is ongoing, you will be able to stay in the house.

You will not have to pay rent. Only once the house has been sold will you need to find another abode. However, the property transfer must still take place, giving you more time to find another house. Since you will not have to pay any of the creditors from the moment the notice of your intention to sequestrate has been published, you will have cash at hand to put down on a rental home.


As our legal specialists will explain in more detail, you can leave South Africa after sequestration. Keep in mind that you must notify the trustee of the change of address and contact information. An international agreement is in place for most of the countries in the world, including South Africa. The agreement states that if you are insolvent in one country, it does not make you insolvent in another.

However, if you own assets in another country at the time of being declared bankrupt in South Africa, it is possible to get a court order for your sequestration in that country as well. It is best to speak to our insolvency specialists regarding the implications of assets in other countries and how emigrating will affect your rehabilitation.


If you have signed surety for a debt and paid the debt in full, make sure to get the certificate form the creditor to state that the debt has been paid off and that the surety is thus cancelled. This is to avoid a situation where a creditor can later use the surety to claim against your estate. Also be sure to consult with our insolvency specialists regarding the impact of surety arrangements in South Africa.


SARS is also a creditor and ranks as one of the preferent or preferred ones after the secured creditors and employees. The debt owed to SARS thus forms part of the surrendered estate. After sequestration, you will start with a clean slate, also regarding SARS. You will receive a new tax number and income generated from then will be relevant to the new tax number.

Not knowing all the answers may cause you to become anxious. However, our insolvency specialists are here to help with voluntary sequestrations in South Africa and to clear up confusion. Complete the online assessment form to determine whether you qualify for voluntary surrendering of your estate or get in touch with our attorneys for answers to other questions you may have related to insolvency proceedings.

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.