Insolvency Meaning:
The meaning of Insolvency is to be declared bankrupt. Insolvency meaning is going by several different names by the public. One of which is bankruptcy, Insolvency, sequestration, and in Afrikaans, insolvensie, bankrotskap en selfs likwidasie.
Insolvency Meaning is die betekenis van Insolvensie in Afrikaans.
What is the legal term for Insolvency?
Insolvency meanings in legal terms are known as sequestration, voluntary surrender of estate, and in Afrikaans sekwestrasie en vrywillige boedel oorgawe.
Yes, you read it correctly; your living estate is being declared insolvent.
Did you know the meaning of Insolvency?
My name is Christine, and I am going to explain the meaning of insolvency in layman’s terms.
Basically, it means that you’re being declared insolvent and that your debts will be written off once you’ve gone through the sequestration process.
Insolvency means immediate financial relief!
How is that possible, you might ask? Because you are considering insolvency as a debt relief option, you stop paying the debts immediately.
Extra money in your wallet and bank account – Immediately!
You’ll have extra money in your wallet and financial relief in seconds after making this decision.
How is it even legal to have your debts written off?
Well, that is a fairly straightforward answer. It is written in the Insolvency Act, Act 24 of 1936.
I’m sure this isn’t news to you, because I’m confident you’re well-informed, especially in this day and age when information is readily available.
What will this mean for my creditors if I am insolvent?
Your creditors can no longer take any legal action against you. Now that is positive news for you, isn’t it? I should think so.
Insolvency means to a creditor that they will have to prove their claims against the insolvent estate prior to being paid.
When will the debt be paid?
Only after all creditors have had the opportunity to submit their claims against the insolvent estate and the master has approved the final liquidation and distribution account will they receive payment.
But how is that helping me?
The insolvent estate will write off the creditor’s total debt if they choose not to submit a claim.
This is beneficial to you, as it forces the creditors to adhere to the process of submitting their claims against the insolvent estate.
No Legal Action!
This means that they are unable to take any legal action against you. They have only one remedy, and that is to submit a claim against the insolvent estate.
Will all the debt be written off?
Up to 90% of your debts can be written off with the insolvency process.
What about my assets?
There’s no need to worry about your furniture and vehicles. You will not lose it.
Once the master of the high court appoints the curator, you will have the chance to purchase it from the insolvent estate, preventing its removal from your property.
How will I be able to buy my furniture and vehicles back from the insolvent estate when I’m insolvent, and what does it mean for me as the insolvent party?
A qualified valuer will evaluate the furniture and vehicles based on the valuation report’s value.
The insolvent will buy back the furniture for the specified amount from the insolvent estate.
Do I have to negotiate my payment plan myself, or will you help me?
The choice is yours, but we will negotiate a payment plan, should you prefer it, with the curator on your behalf, allowing you to pay in affordable installments.
No Interest, additional costs and / or legal fees!
This amount is not an interest-bearing one.
No more debt repayments!
Remember, you will no longer be paying your debts, and the creditors who have proven their claims against the insolvent estate will receive this amount.
Are there any interest and other costs added to the buyback amount?
This amount is not an interest-bearing one. Remember, you will no longer be paying your debts, and the creditors who have proven their claims against the insolvent estate will receive this amount.
What happens if I am still repaying my vehicle?
Unfortunately, if the vehicle is not paid for in full, you will lose it in the insolvent estate. In the event of insolvency, the bank will repossess any financed vehicle and sell it at auction to the highest bidder.
I’m insolvent, how can I get a vehicle?
Declaring insolvency has its drawbacks, but it’s important to remember that you can still obtain a vehicle through a lease- or a rent-to-own agreement
Because the vehicle is not financed but a rental, you will be able to continue using it, as long as you service the monthly repayment in terms of the agreement with the service provider.
I own a house. What will insolvency mean for my house?
Even if you have paid off your house, it will still belong to the insolvent estate. But if the house is registered with a business or trust, you will be able to keep it.
Just as long as it is not registered in your personal name.
What does insolvency mean for my credit profile?
You will be listed as being insolvent on your credit profile.
The insolvency status can only be removed from your credit profile once the voluntary surrender is finalised and a financial rehabilitation order has been issued in court.
Then you can clear your credit profile again and partake in the economy once more.
After reading all this, I gather that this is a high court application to apply for insolvency. This means that there will be costs involved. How much are the costs?
Once the assessment is complete, we will calculate the costs. We will furnish you with a quote and a breakdown of the costs. You can pay the fees in convenient, affordable installments.
What’s next?
Now that you understand the basics of declaring yourself insolvent and that it means immediate financial relief if you’re over-indebted, why not contact one of our insolvency experts for a free assessment and consultation? You have nothing to lose, only your debts…
FREEEEEEE……!
An obligation-free assessment to see if you qualify and a free consultation explaining the process in detail…
If, after an obligation-free assessment, you realise this is not for you. As an added bonus, our Insolvency Experts will also offer insights into alternative debt relief solutions, including debt review, as they have a thorough understanding of the process.
What if I don’t qualify for Insolvency?
If you do not qualify for insolvency, we have excellent debt counsellors ready to help you through this process. We are here to help you.
Get valuable guidance from our insolvency attorneys on how to apply for bankruptcy and understand the impact of sequestration on your financial situation.
Get a Free Assessment and Free consultation from one of our Insolvency Law Experts and find out if you qualify for this remedy as provided for in the Insolvency Act of South Africa.
Disclaimer: The article is for informative purposes only. It does not serve as legal advice, nor is it intended as such. Please speak to our attorneys before relying solely on the information herein to make any decisions.