WHAT ARE THE EFFECTS OF INSOLVENCY AND REHABILITATION? When the liabilities of a business exceed its assets, and the business is unable to pay its debts when due or is likely to be unable to do so within the next six months, it is insolvent. It must liquidate or enter business rescue. When it comes to individual insolvency, a person’s liabilities must exceed their assets and… Read More »WHAT ARE THE EFFECTS OF INSOLVENCY?

WHAT DOES IT MEAN TO BE SEQUESTRATED? FREQUENTLY ASKED QUESTIONS Sequestrations are the legal processes whereby creditors apply for debtors to be declared bankrupt or whereby insolvent parties apply to be declared bankrupt. WHAT ARE THE REQUIREMENTS FOR VOLUNTARY SEQUESTRATIONS? To be voluntarily sequestrated, the applicant must be truly insolvent. This means the applicant must be cash-flow and capital insolvent. As such, the individual’s liabilities… Read More »WHAT DOES IT MEAN TO BE SEQUESTRATED?

HOW DO YOU DETERMINE INSOLVENCY IN SOUTH AFRICA? You may struggle financially, but are you insolvent? To apply for voluntary sequestration of your personal financial estate, you must be truly insolvent. But how do you determine insolvency? We answer the question below and explain the grounds upon which a creditor can claim that you are insolvent. Keep in mind that business insolvency requirements are different from that… Read More »HOW DO YOU DETERMINE INSOLVENCY?

AN INSOLVENCY CHECKLIST FOR SOUTH AFRICA As convenient as it would be, there is no short and concise insolvency checklist for South Africa. However, to help you determine whether you qualify for voluntary sequestration, we look at the checklist for requirements below. We also look at a checklist to determine if you have committed an act of insolvency that can give a creditor in South… Read More »INSOLVENCY CHECKLIST SOUTH AFRICA

WHAT HAPPENS WHEN YOU ARE DECLARED INSOLVENT? QUESTIONS ANSWERED Although so much has been said about the sequestration proceedings before and after the court awarding the ruling of bankruptcy, you may still have questions, such as: “what happens when you are declared insolvent?” Below, we answer questions in terms of the procedures, the advantages, and the effects of being declared insolvent. WHAT HAPPENS IN TERMS… Read More »DECLARED INSOLVENT?

COMPLETE THE ONLINE ASSESSMENT FORM TO FIND OUT IF LIQUIDATION IS THE SOLUTION Thousands of South African businesses struggle to pay their debts. The recent health crisis and the subsequent lockdown have caused many more to default on their debt payments. Business owners in the tourism and hospitality industries have especially been hit hard during these trying times. Unable to operate from the start of… Read More »ONLINE LIQUIDATION ASSESSMENT FORM

INSOLVENCY PRACTITIONERS: INSOLVENCIES IN SOUTH AFRICA DURING LOCKDOWN With an increase in insolvencies in South Africa, more and more businesses approach insolvency practitioners for advice on how to proceed with business rescue and liquidation applications for their companies. HOPE DURING THIS PERIOD? For companies struggling to maintain cash-flow, pay their creditors, and ensure their liabilities do not exceed their assets, there is hope. The Companies… Read More »INSOLVENCY PRACTITIONERS

SEQUESTRATIONS IN SOUTH AFRICA: ONLINE APPLICATION TO DETERMINE IF YOU QUALIFY With the national state of disaster in place and the subsequent lockdown period, many individuals have lost their permanent jobs. Self-employed people have also been hard-hit because of the inability to trade, while many have lost large client contracts during the period. Several property owners are unable to pay the bonds on their properties… Read More »ONLINE SEQUESTRATION APPLICATION FORM

Many South African companies have to close their doors because they have not been able to continue normal operations during the lockdown period. Although liquidation is certainly an option, it also entails large-scale job losses and subsequent financial distress for the employees. Business rescue is an alternative, but to understand whether it can work for a company, it is important that we answer the question:… Read More »WHAT IS BUSINESS RESCUE?

BUSINESS RESCUE PRACTITIONERS: ROLES AND REQUIREMENTS Business rescue is the process whereby a company in financial distress is restructured under the supervision of an appointed business rescue practitioner to bring it back to a state of solvency and thus the ability to legally trade. According to the new Companies Act of 2008 and its amendments, such practitioners must meet specific requirements. A closer look at… Read More »BUSINESS RESCUE PRACTITIONERS