HOW SEQUESTRATION WITHOUT ASSETS WORKS Sequestration without assets is possible if the legal fees, estate administration, and minimum benefits requirement can be met. It still requires a legal application process. Keep in mind that voluntary sequestration – with or without assets – is a process that has been instituted specifically to help individuals in South Africa, who are no longer able to pay debts due… Read More »SEQUESTRATION WITHOUT ASSETS

ANSWER TO THE QUESTION: “IS INSOLVENCY AND BANKRUPTCY THE SAME THING?” People use the terms insolvency and bankruptcy interchangeably to refer to a state of financial distress. However, before using bankruptcy as a synonym for the term insolvency, one has to ask: “Is insolvency and bankruptcy the same thing?” We provide an answer to the question and clarify other issues as well, helping you to… Read More »IS INSOLVENCY AND BANKRUPTCY THE SAME THING?

MEANING OF SEQUESTRATION TERMS AND CONDITIONS EXPLAINED We briefly answer questions about sequestration, meaning of it and more below to help you gain a better understanding of bankruptcy proceedings in South Africa. WHAT IS THE MEANING OF VOLUNTARY SEQUESTRATION? It is a legal process whereby an insolvent natural person applies to be declared bankrupt. Certain requirements must be met before the High Court or a… Read More »SEQUESTRATION MEANING

“CAN SEQUESTRATION BE REVERSED?” AND OTHER QUESTIONS ANSWERED One of the questions that is often asked is: “Can sequestration be reversed?” Though it seems like a straightforward question, several factors must be considered. For one, a sequestration application can be reversed only if notices to the effect have been published in the Government Gazette and the local papers in which the original notice of intention to voluntary… Read More »CAN SEQUESTRATION BE REVERSED

WHY AND WHEN TO LIQUIDATE A COMPANY IN SOUTH AFRICA If your business struggles to pay debts when due and the liabilities exceed the assets, then by law, you must liquidate the company. However, you can also liquidate a company when it is not in debt. This is done when the business no longer trades and to prevent claims in the future against it, you… Read More »LIQUIDATE A COMPANY

HOW DOES INSOLVENCY AFFECT CREDIT APPLICATIONS AND RECORDS IN SOUTH AFRICA? Before applying for voluntary sequestration, you need to know the answer to the question: “how does insolvency affect credit?” It is essential to understand and come to terms with how it impacts your ability to obtain finance, as well as your credit record, since the status will have an impact on your ability to… Read More »HOW DOES INSOLVENCY AFFECT CREDIT?

SOUTH AFRICAN INSOLVENCY PRACTITIONERS: ROLES IN BUSINESS RESCUE AND LIQUIDATION In the current economic climate, where many businesses struggle to keep their doors open, business rescue has become a rather attractive option for companies to avoid liquidation. Many South African insolvency practitioners have been appointed in recent years as business rescue practitioners in order to help rehabilitate failing companies and bring them back to a… Read More »SOUTH AFRICAN INSOLVENCY PRACTITIONERS

ANSWERS ON QUESTIONS: WHAT IS THE LEGAL DEFINITION OF INSOLVENCY? With so many misconceptions about insolvency, bankruptcy, liquidation, and sequestration, it is time to answer the question: “what is the legal definition of insolvency?” SO, WHAT IS THE LEGAL DEFINITION OF INSOLVENCY? It is when a business entity or person is unable to meet their financial obligations to their creditors as and when the debts… Read More »WHAT IS THE LEGAL DEFINITION OF INSOLVENCY?

HOW TO AVOID BANKRUPTCY IN SOUTH AFRICA It is possible to avoid bankruptcy in South Africa, even if you have excessive debt, do not have enough assets, and experience difficulty in paying debts when due. We briefly look at ways to avoid bankruptcy before and after the mentioned scenario. PAY OFF DEBTS WHERE POSSIBLE Set up a monthly budget for the basic living expenses. Cut… Read More »AVOID BANKRUPTCY

A DEBT SOLUTION THAT COMPANIES IN SOUTH AFRICA NEED TO CONSIDER Liquidation may not be a debt solution that companies in South Africa consider at first, but with the risks involved in carrying on with business even when in financial trouble, more companies should consider it. BUSINESS RESCUE AS A DEBT SOLUTION FOR COMPANIES Some companies can still be saved, thus brought back to a… Read More »DEBT SOLUTION COMPANIES