WHAT IS THE DIFFERENCE BETWEEN BANKRUPTCY AND INSOLVENCY? Though the terms of bankruptcy and insolvency are used interchangeably, there is a distinct difference between the two. For one, a person can be insolvent without being bankrupt. However, one cannot file for bankruptcy unless insolvent. Insolvency is a financial state whereas bankruptcy is a legal state regarding your financial welfare. Let us explain it in more… Read More »BANKRUPTCY AND INSOLVENCY

DO YOU MEET THE VOLUNTARY SEQUESTRATION REQUIREMENTS? The Insolvency Act of 1936 and its amendments govern the process of voluntary surrendering one’s estate and the application to be declared bankrupt. In order to make use of voluntary sequestration as a debt-management solution, certain requirements must be met, which are briefly discussed below. LIABILITIES MUST EXCEED ASSETS The High Court of the country must be satisfied… Read More »SEQUESTRATION REQUIREMENTS

VOLUNTARY SEQUESTRATION – DEBT PROBLEMS AND SOLUTIONS IN SOUTH AFRICA A recent report by TransUnion shows that consumers struggle with debt problems in South Africa.  The credit demand remains worrisome, with defaults on secured debts on the increase. This is especially true for home loans and vehicle finance. The high food prices, petrol price hikes, and related economic challenges experienced are among the reasons for… Read More »DEBT PROBLEMS AND SOLUTIONS

VOLUNTARY SEQUESTRATION AND OTHER DEBT-RELIEF SOLUTIONS IN SOUTH AFRICA Voluntary sequestration is often considered as a last resort after having tried other debt-relief solutions in South Africa. Unfortunately, one can be too poor for sequestration, as the estate must have sufficient assets to ensure that the sale thereof can provide enough funds for minimum benefits to the creditors and payment of the sequestration costs. In… Read More »DEBT-RELIEF SOLUTIONS IN SOUTH AFRICA

WHAT IS LIQUIDATION OF A COMPANY? SOME LEGAL HELP Understanding how the process works and why it can be beneficial in the business world starts with getting an answer to the question: “What is liquidation of a company?” We thus briefly answer the question, helping you to decide whether to apply for liquidation of a company in South Africa. What is important to understand is… Read More »WHAT IS LIQUIDATION OF A COMPANY?

ARE YOU UNABLE TO PAY DEBTS OWED? If you have answered yes to the question of “are you unable to pay debts owed?” it is time to consider voluntary sequestration as a solution. What you should avoid is communicating your situation in writing to creditors. Indeed, it is an act of insolvency to admit that you are unable to pay debts owed or to attempt… Read More »UNABLE TO PAY DEBTS OWED?

WE SPECIALISE IN INSOLVENCY LAW AND CAN HELP YOU BECOME DEBT-FREE Understanding what to do and what to sidestep when you struggle with debt is essential to avoid losing everything in the process and still be liable for paying the debt. We specialise in insolvency law, and can thus help you determine the best course of action to address your debt problems. Indeed, many people… Read More »WE SPECIALISE IN INSOLVENCY LAW

ANSWER TO THE QUESTION: “WHAT IS SEQUESTRATION ORDER?” Understanding insolvency and how it affects your financial position is important in deciding a course of action to take in addressing your debt problems. You may have contemplated various debt solutions, including how to declare bankruptcy in South Africa. To this end, we briefly answer the question of “what is sequestration order?” and related questions below to… Read More »WHAT IS SEQUESTRATION ORDER?

LAW OF INSOLVENCY REGARDING NOTICES TO CREDITORS IN SOUTH AFRICA According to the law of insolvency, a debtor’s estate can be sequestrated by means of voluntary surrender or when one or more creditors apply to court for the compulsory sequestration of the debtor’s estate. VOLUNTARY SEQUESTRATION For the purpose of this article, we look at voluntary surrendering one’s estate according to the law of insolvency… Read More »LAW OF INSOLVENCY

ANSWERS ON YOUR QUESTION OF HOW LONG DOES A SEQUESTRATION LAST? Before voluntary surrendering your estate, you most probably want an answer to your question of how long does a sequestration last? The answer depends on various factors, and we thus briefly look at the circumstances that determine when you can apply for rehabilitation. HOW LONG DOES A SEQUESTRATION LAST IF YOU DO NOT APPLY… Read More »HOW LONG DOES A SEQUESTRATION LAST?