The stress of managing credit can be a constant weight on your shoulders, and the thought of becoming debt-free might seem impossible. Seeking solutions with consolidation loans in 2021 may at first seem to be the answer, but not using the selected loan to pay off every account can lead to more financial trouble.

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Out of control credit can destroy your finances and put your aspirations on hold. Whether you want to buy a home with a home loan, hope to save up for your retirement, or simply hope to feed your family in 2021, you may not qualify for debt solutions as offered by banks because of a poor payment record and overexposure to credit. Breaking free from the credit crunch can seem like an impossible task.

Fortunately, debt solutions are available to help you break free from constant creditor harassment, the ongoing fear of answering the phone, or the humility of having to ask for help from family just to keep food on the table.


Voluntary insolvency is an application filed by an insolvent individual to be declared bankrupt. Usually, this bankruptcy takes place after a person has made all efforts to repay their debts. With the strict lockdown regulations of 2021, and thereafter large-scale business looting, which took place in selected towns across South Africa, you may have lost your business or perhaps your spouse lost their income. Faced with only one income for the household, you may have used credit cards and store accounts to the maximum.

You are not alone. Millions of South Africans struggle to make ends meet. The financial difficulties span all economic income groups. It is, however, important to seek legal guidance regarding the best debt solutions for 2021. Even if you are already under debt review and cannot make the monthly consolidated payment, you can still get help. When it has come to this situation and creditors threaten with judgments, do not wait any longer.

Use our online voluntary sequestration form to assess your financial situation. Complete it and our attorneys will help determine whether or not you qualify for voluntary sequestration. You will be able to have as much as 80% of the amounts owed written off. This is because with sequestration, the creditors must receive at minimum 20 cents out of the rand. If assets in your insolvent estate are sufficient to ensure enough proceeds to satisfy this requirement and pay the cost of sequestration, you will be able to apply for rehabilitation once the time frame requirement has been met.

This type of bankruptcy will protect you if you are eligible and enable you to start from scratch, free from the weight of financial trouble that you have been carrying in 2021. If you go this route, you will find you can rebuild your financial estate quickly and get back on your feet, so to speak.


Start by assessing your income and expenses. List assets, liabilities, and creditor details. Do not leave anything out. List the original amounts, what you pay monthly, and how much you still have to pay. Also note living expenses. Once you have the information at hand, speak to our attorneys for help with voluntary sequestration as one of the available debt solutions in 2021.

Disclaimer: This article is for informational 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.