Sequestration Rehabilitation Process ExplainedSequestration Rehabilitation Process Explained

You may apply for sequestration rehabilitation after a period of four years or once you have completed your obligations as set out in your sequestration. This is a process whereby you seek to clear your name from the insolvency status. Should you not go through the court application process for sequestration rehabilitation, you will automatically have the notice of sequestration next to your name at the Credit Bureau for a period of ten years.

During this period you may not be a director of a company or undertake or incur any form of debt. Adverse credit notifications before the sequestration will also still be noted at the Credit Bureau. It’s thus in your best interest to start the rehabilitation application as soon as you’re allowed to.

When you undergo sequestration a curator is appointed to manage your creditor’s benefit payments. It is imperative to keep to the payment schedule of the benefit to creditors determined in your sequestration; since the curator can refuse the application to be rehabilitated should any irregularities surface.

If the curator requests monthly income and expense statements it will be important to provide it for the period of sequestration. Once the curator has concluded his responsibilities under the Insolvency Act toward the creditors on your behalf he/she can provide you with the required permission.

Insolsure can help you with the process of rehabilitation. An application must be filed with the Master of the High Court. The curator will submit the records to show how the benefit to the creditors have been calculated and distributed.

Documents Needed for the Sequestration Rehabilitation Process

We first need the permission from the curator that the process may be initialized. Once we have that we will also need the sequestration order and the certificate of appointment of the curator. In addition, the Article 81 report and the first and last L&D (Liquidation & Distribution) account must be received. We further more need the date when first and final L&D was enforced as well as the enforcement letter.

Note that for a first-time rehabilitation application a minimum of three years must have passed while for a judgment against you for deceitful action the period extends to a minimum of five years. If no claims have been made against the insolvent estate and no judgments have been initialized, the chances for rehabilitation will be excellent. The Master of the High Court will confirm rehabilitation and you will once again be credit worthy. Your newly reinstated solvent status will reflect on your credit record merely by removing the sequestrated status from our credit record.

Once successfully rehabilitated, you will need to start building a new and hopefully healthy credit record through undertaking small and manageable debt.

Discuss Your Next Steps
Summary
Sequestration Rehabilitation Process Explained
Article Name
Sequestration Rehabilitation Process Explained
Description
The process Sequestration Rehabilitation Process Explained. Leading South African Rehabilitation application attorneys
Author
Publisher Name
Insolsure
Publisher Logo