Tired of creditors calling throughout the day, therefore demanding answers as to when they will be paid? Do you find it difficult to pay your monthly expenses and service your debt? Sequestration in South Africa can be the solution for you. You can experience sequestration with property or without property. The complete sequestration-process is therefore explained though the Insolsure website, furthermore giving you an indication of what it entails.
South Africa’s Sequestration-Process
OK, so you decide to go the sequestration route. We will furthermore publish an advert to the effect in a local newspaper and the Government Gazette. As soon as the ad appears, no further legal procedures can be initialized by creditors. This means that you won’t have to be concerned about any further notices of property or immovable property seizures or execution notices.
Once you decide to go with the sequestration-process, we will therefore furthermore publish an advert to the effect in a local newspaper. This includes the Government Gazette. When the ad appears, no further legal procedures can be initialized by creditors. This means that you won’t have to be concerned about any further notices of property or therefore immovable property seizures or execution notices.
The sequestration-process starts
Our legal team will furthermore draw-up an ability statement which you then sign before a Commissioner of Oaths. The document is submitted to the Master of the High Court and/or with the local Magistrate. Depending on the specific circumstances. These document will lay for inspection and insight for 14 days during which time your creditors can obtain your statement of debtors-affairs and conclude whether they have grounds on which to oppose the proposed sequestration. Your creditors are notified of this via a registered letter to.
We must therefore notify SARS of the procedure irrespective of whether you are a registered tax payer or not.An advocate is appointed to represent you in the High Court which means that you need not attend any proceedings in person. After the application is granted by the Court, the court will appoint a curator who shall be under
The advocate is appointed to represent you in the High Court which means that you need not attend any proceedings in person. After the application is granted by the Court, the court will appoint a curator who shall be under mandate to distribute the financial benefit as determined in your statement of debtor’s affairs to the listed creditors. The court will in addition provide to you, through us your attorney, with a copy of the sequestration court order which you may forward on to creditors who insist on payment outside of the sequestration order’s guidelines.
Favor for the Creditors
Our sequestration-process costs therefore involve a fixed fee structure, eliminating the risk of unexpected fees. Repayment of the amount determined as the benefit for the creditors entails no accrued interest and the repayment amount can be negotiated for settlement over an 18 month period. By law a debtor must be able to provide a 20 to 25c favor in the Rand for the creditors. What it in addition means is that should you owe the bank a R10 000, the bank must receive at least R2000.
Buying Back Your Assets
A valuation will therefore be done of your household items and other movable or immovable assets. With the Insolsure sequestration no furniture will be removed and you will get the opportunity to purchase your assets back at the value determined to be required for your sequestration.
According to the Sequestration laws of South Africa, once you surrender your estate, your salary and other income are therefore still your own. Contact us today for an appointment to learn how you can get out of the debt trap through sequestration.
Requirements for launching an Insolvency application
- Residential Address & in addition Employment information
- Marital regime/ Spouse / Spouse Identity Number (if married at the time of sequestration) / Divorced (when).
- Sequestrated before
- Statement of Affairs (in terms of Section 4(3) of the Insolvency Act) with furthermore reasons for insolvency incorporated:
“Example: I am currently unemployed. Together with this I went through an acrimonious divorce and have used my credit cards and overdraft facilities to try and survive. We conducted my own business as a bookkeeper, but due to the divorce I was unable to service clients properly and I lost all my clientele. Our family can no longer maintain my monthly obligations.
Debt review is at this stage not an option for me as I don’t receive an income at all. At this stage I am relying on the assistance of family and friends. My financial situation is currently in such a bad state that I have I am of opinion that it will never recover.”
- Motor vehicle / value of the vehicle / valuation report / finance / amount still due / COB.
- Amount paid into attorneys trust account to defray the costs of the sequestration and in order to ensure that concurrent creditors will receive a dividend.
- Total amount therefore owed to creditors.
- The Notice of surrender in the Government Gazette and most noteworthy local newspaper advert.
- Together with the Notice of surrender to each one of the creditors per registered post within 7 days of publication in the Government Gazette.
- Notice of surrender to the Receiver of Revenue within 7 days of publication in the Government Gazette.
12. Income and expenditure statements in conclusion