Sequestration insolvency advantages
What are Sequestration insolvency advantages? This question usually follows “What are the disadvantages of sequestration?”. Insolsure naturally look at safeguarding clients against the negative first. However, through reviewing the brief listing of the advantages of sequestration below, you will find that its positive impact far outweigh its negative or limiting aspects and form a much more stable and long-term solution to over-indebtedness.
1. The first of the Sequestration insolvency advantages is most obviously that you legally write off up to 80% of your debt. If this is not a reason to consider Insolvency, you are not in that much debt.
2. The second largest Sequestration insolvency advantages. Any judgment taken against you, which is valid for thirty years, falls away. This is significant when you take into account that you can apply for rehabilitation after only four years as an insolvent. Once your application for rehabilitation has been granted your credit record will be cleared. Effectively allowing you to start over, renovating a strong and healthy credit record by avoiding past mistakes.
3. Garnishee orders placed on your salary will be removed placing your full income back into your control.
4. You will be allowed to keep your movable assets. This prevents loose asset auctions. You will receive written buy back agreements from your liquidator
5. You would not need to appear in court yourself. The attorney’s appointed advocate will bring your case on your behave before of the high court.
6. You need not deal with your creditors anymore. Once under sequestration your attorney will handle queries on your behalf and direct them to your curator for distribution of their creditors benefit once such court appointment has been made. No need to run and hide from debt collectors anymore.
7. Lastly, and according to us a very important advantage of sequestration is that you will ultimately regain normality in your financial affairs.
In South Africa where more than two-thirds of the population is heavily burdened with financial problems. Over-indebtedness, sequestration could have almost no advantages other than ridding the debtor of his creditors’ liabilities. This would still be a much more feasible solution than any of the other debt remedies available to the debtor under the National Credit Act.