Some of the questions you may have regarding voluntary sequestration to become debt-free are briefly answered below. Can a creditor attach my salary or take part of it if I voluntarily sequestrate? No. The appointed trustee, however, can attach part of your monthly salary for payment of the outstanding amount after the sale of assets and distribution of benefits to the creditors, but will still… Read More »ANSWERS TO YOUR SEQUESTRATION CONCERNS IN SOUTH AFRICA

Voluntary liquidation is easier than voluntary sequestration in the sense that the business doesn’t need assets, whereas the individual must have property or sufficient cash to pay at least ten cents to the rand for the benefit of creditors. In addition, once the business liabilities exceed its assets, by law the business must cease trading and must apply for business rescue assistance, or voluntarily liquidate.… Read More »HOW VOLUNTARY LIQUIDATIONS WORK IN SOUTH AFRICA

The first step in getting rid of mounting debt is to speak to an insolvency expert to help clear up myths about sequestration and to guide you through the process. What is Insolvency? Insolvency is a financial state of affairs wherein the individual’s income is insufficient to pay their monthly expenses and debt. It is also the financial status of a business where the liabilities… Read More »THE BASIC STEPS TO DECLARE BANKRUPTCY IN SOUTH AFRICA

t is no secret that most small- to medium-size businesses fail within the first two years of operation, with many also failing in the third and four years. The business world is highly competitive and even having just one large client not paying their accounts can mean serious cash-flow problems. South Africa’s Insolvency Act states that if the liabilities of a business exceed its assets… Read More »LIQUIDATION PITFALLS TO AVOID

Credit card debts, store accounts, phone contracts, increases in school fees, vehicle breakdowns, death in the family, serious medical conditions, and unforeseen circumstances can have a cumulative debt effect. You wake up one morning to find that you simply cannot afford your lifestyle anymore. To make things work out, you sell off some of your paid assets, or perhaps you try to consolidate the debt… Read More »WHICH DEBT SOLUTIONS WILL WORK IN YOUR SITUATION?

If you don’t use the business entity to generate income, or for the purpose of serving a community or group interest, and you find that the annual submissions to CIPC and SARS are simply not worth your time, then you may want to deregister the business. As part of the process, you will liquidate it to ensure that there will not be creditors down the… Read More »WHEN TO CONSIDER BUSINESS LIQUIDATION IN SOUTH AFRICA

People often confuse voluntary liquidation with property, with voluntary sequestration. The latter is when a person who owns property voluntarily surrenders their estate for the purpose of having the assets sold in order to realise enough benefit to the creditors as a means of paying off their debt. Voluntary sequestration with property thus applies to a natural person. Voluntary liquidation with property is when a… Read More »WHAT BUSINESS LIQUIDATION WITH PROPERTY IS ABOUT