The first thing to do if you consider negotiating with creditors regarding your debt is to consult with expert insolvency lawyers in Gauteng. They are able to answer your questions and help you avoid potentially costly pitfalls.
Below are answers to questions you might have regarding voluntary sequestration, debt compromise, and dealing with your creditors. For expert guidance, seek advice from our insolvency lawyers in Gauteng.
DO I HAVE TO APPLY TO THE HIGH COURT OF SOUTH AFRICA IF I WANT TO VOLUNTARILY SEQUESTRATE?
Yes, unless your home is far from the High Court. In this instance, your application will be heard in the Magistrate Court with jurisdiction in the area where you reside.
WHAT IF I LIVE OUTSIDE GAUTENG, CAN I STILL REACH OUT TO EXPERT INSOLVENCY LAWYERS IN THE PROVINCE FOR HELP?
Yes, you can. They will advise you regarding proceedings. They will be able to refer you to attorneys who can help with your application in the province where you reside if they are unable to help with your application.
I AM MARRIED OUT OF COMMUNITY OF PROPERTY. ARE MY SPOUSE’S ASSETS SAFE IF I AM SEQUESTRATED?
Yes, you are two separate legal entities. Therefore, you have separate financial estates. However, your spouse’s assets will be included in the sequestration process, unless they can prove rightful ownership of their assets. To this end, consult with our expert insolvency lawyers in Gauteng on how to protect the assets of your spouse.
I AM MARRIED IN COMMUNITY OF PROPERTY. DOES IT MEAN WE MUST BOTH APPLY FOR VOLUNTARY SEQUESTRATION?
Yes. You share a financial estate. Speak to our lawyers in Gauteng about the implications.
I HAVE HEARD THAT I CANNOT HOLD A LIQUOR LICENSE IF I AM SEQUESTRATED OR ACT AS A GENERAL TRADER, IS THAT TRUE?
Yes. You cannot hold certain government positions, are not allowed to be a director of a company or member of a close corporation, and cannot hold a liquor license, or act as a general trader. However, the idea is not to prevent you from being able to make a living. Speak to our insolvency lawyers about what to do if you are currently a general trader in Gauteng and have no other means of generating income.
I WANT TO SEQUESTRATE, BUT I AM AFRAID THAT THEY WILL TAKE MY COMPUTER, WHICH I NEED TO MAKE A LIVING. WHAT CAN I DO?
Your tools of trade are safe. This means equipment that is essential for you to perform your trade will be excluded from the sale of assets. However, specific procedures must be followed to ensure this. Speak with our expert insolvency lawyers in Gauteng on what is seen as tools of trade, and how to proceed in protecting these assets.
I AM ONLY A FEW YEARS AWAY FROM RETIREMENT. IF I VOLUNTARY SEQUESTRATE NOW, WHAT WILL HAPPEN TO MY RETIREMENT MONEY?
Fortunately, your pension fund money is not part of the voluntary sequestration process. Your current salary is also safe, as is money allocated to you for a personal injury claim. However, any inheritance money or assets you have received will form part of the estate. It also extends to inheritance after sequestration, but before rehabilitation. To protect your inheritance, you can decline acceptance. Consult with our expert insolvency lawyers in Gauteng to learn more.
I HAVE HEARD THAT MY FURNITURE CAN BE BOUGHT BACK FROM THE INSOLVENT ESTATE. DOES IT INCLUDE ALL FURNITURE?
Furniture value is often too low to make any difference in the sale of assets. This is why it is possible for our insolvency lawyers to negotiate for your furniture to be written up, but not removed from your property. You can buy back the furniture at the low auction value. However, a family heirloom piece, such as an expensive yellow wood table or a grandfather clock, will have significant value and will most probably be included. That said, it is best to discuss your asset list with our attorneys to help clear up misconceptions.
I STILL OWE MONEY ON MY VEHICLE, WHAT WILL HAPPEN TO IT?
The vehicle is financed. Although you use it and pay the licence, the lender has the original vehicle registration documents. Only once the full finance amount has been settled and the lender has given you the letter of settlement, together with the original registration papers, do you become the title holder. As such, the vehicle cannot be included in the sequestration while under finance. The lender has the right to repossess it. For more information on this, seek legal guidance from our attorneys in Gauteng.
WHERE CAN I FIND MORE ANSWERS ON VOLUNTARY SEQUESTRATION?
Visit our FAQ page for more answers on insolvency matters.
WHERE CAN I GET HOLD OF EXPERT INSOLVENCY LAWYERS IN GAUTENG?
Send us a message using the online form to have our attorneys get in touch with you, whether you need expert help with debt compromise or voluntary sequestration.
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.