SEQUESTRATION IN SOUTH AFRICA: WHAT YOU NEED TO KNOW IN 2021

So far, the year 2021 has given people in South Africa little hope for financial improvement. As the aftermath of the worldwide response to the pandemic is still felt across all sectors, more people find it near impossible to avoid sequestration. If you also consider it as a way to deal with mounting debt, make sure you follow the correct steps. To get you started, let us look at what you need to know in 2021 about the requirements and steps to take.

WHAT ARE THE REQUIREMENTS FOR VOLUNTARY SEQUESTRATION IN SOUTH AFRICA IN 2021?

sequestration

Keep in mind that declaring bankruptcy should not be seen as an easy way out of debt. However, if you have already taken steps to reduce your debt burden through a consolidation loan or debt review, but find it impossible to pay the debt, then voluntarily surrendering your estate is a viable solution.

To qualify, you must be truly insolvent. This means you must not be able to pay debts when due and your liabilities must exceed your assets. Take the first step towards financial freedom. Determine if you qualify for the voluntary surrendering of your estate. If you do qualify, the next requirement is that the cost of the bankruptcy proceedings must be covered by the sale of your assets and the creditors must be able to receive at least 20 cents out of the rand each.

YOU NEED TO KNOW THAT A DEBT SOLUTION IS NOW AVAILABLE FOR SOUTH AFRICANS

For many South Africans already in this boat, sequestration can even be seen as a relief because it enables them to have up to 80% of their debt written off. In addition, creditor harassment stops almost instantly, and all pending judgments are stayed. If you are one of the consumers struggling to keep food on the table, fuel in your vehicle, and creditors happy, then the above-mentioned information should come as a relief.

WHAT YOU NEED TO KNOW ABOUT THE STEPS TO TAKE IN 2021

Our insolvency lawyers will help you through every step, taking the burden from your shoulders. The first step is to complete our obligatory-free assessment form. You can do it in your own time. Make sure you list all the creditors, even the ones who have not been in contact for the past three years. If you owe a creditor money, list them. This includes SARS. List the principal debt for each, the outstanding amount, and interest. List your monthly expenses and income.

Next, view our section on the process involved and finally get in touch with our attorneys to discuss the way forward. The basic steps involve the publication of the notice of your intention to sequestrate, the court hearing, meeting with the appointed trustee, creditors meeting, and the finalisation of the sequestration.

You will not have to appear in court, and with the help of our attorneys, it is possible to negotiate for the buy-back of your furniture at low auction value. This also means that the furniture will not be removed from your home. We handle the process discreetly while giving you legal support throughout. You do not have to deal with further creditor harassment in 2021.

Take the first step towards a debt-free life for 2022. Get in touch for legal help with sequestration in South Africa.


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.