The sequestration process
If you are considering Insolvency, you might wonder how the sequestration process works
This is a very intensive and legally technical process but luckily most of it happens behind the scenes.
Let’s have a look at the sequestration process and with more details on how it works in order to obtain a court order and how the sequestration process affects you
Once the court order has been granted and you are sequestrated the real process starts. Liquidators, curators and attorneys work with Creditors. Your involvement is limited at this stage.
Short version of the sequestration process
Once you realize that you need help with you debt you contact an Insolvency practitioner to assist you with Insolvency
You will have to complete an application form with all your personal details, creditor information, income and expenses.
You will be given an estimate on what your application will cost.
Instead of us selling your personal belongings to generate income into your estate, your assets will be valued to be enough to cover the estates costs and creditors.
You will pay your initiation fee and sign a debit order for the monthly repayments into your estate.
The actual application starts.
Your notice of intention to apply for insolvency is published in the Government Gazette. Once published, you are provisionally sequestrated.
About 4 weeks after the Gazette publication, we go to court to present your application. This is an Ex Parte application. You do not attend court.
If the final order is granted, your estate vests in the Mater of the Court.
The Master of the court appoints a curator (Liquidator). The liquidator will have the responsibility to administer your insolvent estate.