Company liquidations in South Africa are more common than most people realise. The two main types of liquidations are: WHAT IS THE DIFFERENCE? The deregistration of a company at CIPC is also referred to as liquidation. In this regard, a solvent entity is brought to a close, and the easiest way to end it is to deregister it at CIPC. The assets and liabilities must… Read More »WHAT HAPPENS IF A COMPANY IS LIQUIDATED IN SOUTH AFRICA?
HOW TO GET OUT OF DEBT DURING THE ECONOMIC CRISIS IN SOUTH AFRICA: FILING FOR BANKRUPTCY It is no longer a matter of not getting into debt, but how to get out of debt. The worldwide 2020 COVID-19 health crisis has led to governments taking decisive actions to combat the spread of a potentially devastating disease. However, for many owners of small and medium-sized businesses,… Read More »HOW TO GET OUT OF DEBT
HOW CAN SEQUESTRATION ATTORNEYS HELP WITH FINANCIAL REHABILITATION IN PRETORIA? The economic crisis affects everyone, from small businesses and contract workers to employers and employees alike. Some people are affected more than others. If you are at the receiving end of non-payment by clients and, because of it, end up bankrupt, you have the option of filing for bankruptcy. WILL IT HELP? If you have… Read More »HOW CAN SEQUESTRATION ATTORNEYS HELP YOU?
The sequestration process entails legal proceedings whereby an applicant applies to be declared bankrupt or where a creditor applies to the court with the help of attorneys to have a debtor be declared bankrupt. VOLUNTARY SEQUESTRATION IN A NUTSHELL With voluntary sequestration, the insolvent party’s attorneys handle the court application and the applicant doesn’t have to be at the court hearing. If the application is… Read More »WHAT IS THE SEQUESTRATION PROCESS?
HOW CAN A DEBT PRACTITIONER HELP YOU TO RESCUE YOUR BUSINESS? With more and more companies struggling to keep their doors open and prevent large-scale job losses, the need for an alternative to liquidation has brought about the business rescue option. The Companies Act 71 of 2008 makes provision for business rescue to help a company recover from its financial distress. A debt practitioner is… Read More »BUSINESS RESCUE
DOES BUSINESS RESCUE WORK AND HOW CAN A DEBT PRACTITIONER HELP YOU TO RESCUE YOUR BUSINESS? The most prominent question that company directors ask when having to decide between liquidation and business rescue is whether business rescue really works. To understand why companies opt for the latter, we have to consider the benefits of the process as opposed to liquidation. For a business rescue to… Read More »DOES BUSINESS RESCUE WORK?
SEQUESTRATION PROCEEDINGS WHAT ARE THE SEQUESTRATION PROCEEDINGS IN SOUTH AFRICA? Sequestration proceedings in South Africa entail a legal process whereby the financial estate of an individual is surrendered and the individual is declared bankrupt. The court appoints a trustee/curator to oversee the administration of the estate, which also involves the selling of assets on auction and distribution of the proceeds to the creditors who have… Read More »SEQUESTRATION PROCEEDINGS
THINGS YOU MUST KNOW ABOUT DECLARING INSOLVENCY AS AN INDIVIDUAL IN SOUTH AFRICA Declaring insolvency as an individual in South Africa entails a legal process whereby you apply to court to be declared bankrupt. As part of the process, you surrender your estate and a court-appointed trustee/curator oversees the sale of assets and distribution of proceeds to the creditors. The process for applying for declaring… Read More »DECLARING INSOLVENCY AS AN INDIVIDUAL IN SOUTH AFRICA
CAN BANKRUPTCY BE DENIED? REQUIREMENTS FOR VOLUNTARY SEQUESTRATION IN SOUTH AFRICA Voluntary sequestration is a legal process whereby an individual is declared bankrupt by the High Court or by a relevant Magistrate Court in South Africa. It makes it possible for the debtor to get rid of up to 80% of their debt while the remainder is covered by the sale of assets as overseen… Read More »CAN BANKRUPTCY BE DENIED?
AND OTHER IMPORTANT QUESTIONS One of the questions often asked is “can a company in liquidation continue to trade?” Though certain exceptions may apply, the answer is no. The main purpose of a company liquidation is to stop trading and close all business operations. This also helps to prevent the business entity from creating more debt and to protect the creditors. However, to understand why… Read More »CAN A COMPANY IN LIQUIDATION CONTINUE TO TRADE?