In April 2025, the Johannesburg High Court launched a Dedicated Insolvency Court to improve the efficiency of sequestration, liquidation, and business rescue matters. This article outlines what the pilot project entails and its potential impact on Gauteng residents.
📌 Background: Why a Dedicated Insolvency Court?
South Africa’s insolvency system has long faced challenges related to court congestion, delayed hearings, and inconsistent outcomes. In response, the Johannesburg High Court initiated a pilot Dedicated Insolvency Court in April 2025 to address these issues more systematically.
The project introduces two specialised divisions:
- Insolvency Motion Court (IMC) – for urgent and procedural applications
- Insolvency Trial Court (ITC) – for contested matters requiring full hearings
📘 The official directive outlining the pilot can be accessed via the Office of the Deputy Judge President.
⚖️ Key Features of the Pilot
The Dedicated Insolvency Court is structured around a 4-week cycle, with designated days for motion hearings and trials. This approach is intended to:
- Improve predictability for legal practitioners and applicants
- Ensure judicial continuity by assigning insolvency-experienced judges
- Reduce delays in processing sequestration and liquidation matters
The pilot is currently limited to the Gauteng Division of the High Court, specifically Johannesburg.
📍 Implications for Gauteng Residents
For individuals and businesses in Gauteng considering formal debt relief mechanisms such as voluntary sequestration or liquidation, the Dedicated Insolvency Court may offer:
- Faster access to hearings
- More consistent rulings due to judicial specialization
- Reduced administrative backlog
Legal professionals anticipate that if successful, the model could be expanded to other provinces.
📚 Broader Context
This initiative aligns with broader efforts to modernize South Africa’s insolvency framework and improve access to justice. It also reflects growing demand for efficient resolution of financial distress, particularly in urban centres like Johannesburg and Pretoria.
📞 For more information about the sequestration process or to explore whether it may be appropriate in your circumstances, you can contact Insolvency Care or reach out via WhatsApp at 073 071 3809 for a confidential discussion with a registered consultant.
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.