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INSOLVENCY AND BUSINESS TURN-AROUND SPECIALISTS

INSOLVENCY AND BUSINESS TURN-AROUND SPECIALISTS

010 286 1966 | [email protected]

Voluntary Sequestration

Frequently Asked Questions

Get out of debt, and back on your feet. We’ll Deal with Creditors on Your Behalf
Consult with one of SA’s Leading insolvency attorneys.

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Voluntary Sequestration

Frequently Asked Questions

Get out of debt, and back on your feet. We’ll Deal with Creditors on Your Behalf. Consult with one of SA’s Leading insolvency attorneys.

5+ star Google review

Sequestration Process

Understand the process so that you can get out of debt, and back on their feet.

HOW DOES THE SEQUESTRATION PROCESS WORK?

Make an appointment with us. During the consultation, we will assist you in determining whether sequestration is indeed the right option. Should you want to proceed with sequestration, there are a lot of legal formalities of which we take care.

From the date of the decision to sequestrate it normally takes about seven weeks before we appear in Court. You don’t have to appear in person, we appear on your behalf.

During the process

During the process, you are protected against execution by your creditors unless you have left it so late that we can’t timorously place the prescribed publications in the Government Gazette which would stop execution by your creditors.

After the Sequestration

After the Sequestration Order has been granted, the Master of the High Court appoints a Trustee who must take charge of your assets and liabilities. Once a Trustee is appointed we set up a meeting with the Trustee at which meeting we represent you. When meeting with the Trustee we negotiate on your behalf certain important aspects.

WHAT IS A “BENEFIT FOR CREDITORS” AND HOW IS IT CALCULATED?

Benefit for Creditors

In terms of the Insolvency Act, it must be “to the benefit” of your creditors if you sequestrate. This means that you have to prove to the Court that your creditors are, for as long as you are not sequestrated, prejudiced.

Traditionally judges required that concurrent creditors should, in the winding up of the estate; receive at least ten cents in the rand however it has become the norm to receive 20 cents in the rand.

Secure Creditors

The preferred creditors must be paid in full, limited to the value of their security. This means that if you have for example an immovable property in your estate of which the value is a million rand and the value of the property (as determined by a valuator) is, for example, R800,000.00, then that creditor must receive at least R800,000.00 excluding the cost of realisation such as auctioneer’s costs etc.

Unsecured Creditors

The creditors that do not hold any security must each receive a dividend of at least 20 cents in the rand.

Other requirements

Over and above these requirements, there must also be enough assets or cash in the insolvent estate to ensure that the administrative costs of the estate are paid.

Our Attorneys understands the calculation of benefit for creditors and will do it on your behalf.

WHY DON’T I SIMPLY WAIT FOR MY CREDITORS TO SEQUESTRATE ME?

Hostile sequestration Applications

Hostile sequestration Applications are normally brought against debtors who have very large estates and have hidden their assets from creditors. Such a creditor would most properly hold an insolvency inquiry against such a debtor.  Creditors are not keen to bring a “hostile” Sequestration Application, because it is normally cheaper for them to follow execution steps via the Sheriff.

Insolvency inquiry

Insolvency inquiry is a process in the insolvency law by which the insolvent, his family, auditor, employees, auditors etc. can be interrogated to get information regarding the assets and other relevant affairs pertaining to the insolvent estate.

WHICH ARE THE THREE PROCESSES ACKNOWLEDGED IN OUR LAW BY WHICH SOMEONE CAN BE SEQUESTRATED?

3 Ways to Sequestrated

There are three easy in which you can be sequestrated.

Surrender of Estate

The first is by way of “surrender of estate”. In this process, you approach Court as the Applicant of your own sequestration. My advice is that this is an appropriate manner.

Friendly Sequestration

The second process is referred to as “friendly sequestration”. This is the process where a friend or family member brings a sequestration Application against you. Many judges take a dim view on this process because they are of the opinion that a friend is used to hide certain facts from the Courts which would not fall within the knowledge of the friend that brings the Application.

Hostile Application

The third process, what we will call in laymen’s terms a “hostile application”. Hostile sequestration is where one or more of your creditors apply to Court for your sequestration. It would without exemption appear from the Court papers that the Application is hostile because there will normally be allegations that you are dishonest, and that you are trying to hide your assets from the creditors.

Get the help you need to survive and thrive. Talk to Us 

 

Sequestration Process

Understand the process so that you can get out of debt, and back on their feet.

HOW DOES THE SEQUESTRATION PROCESS WORK?

Make an appointment with us. During the consultation, we will assist you in determining whether sequestration is indeed the right option. Should you want to proceed with sequestration, there are a lot of legal formalities of which we take care.

From the date of the decision to sequestrate it normally takes about seven weeks before we appear in Court. You don’t have to appear in person, we appear on your behalf.

During the process

During the process, you are protected against execution by your creditors unless you have left it so late that we can’t timorously place the prescribed publications in the Government Gazette which would stop execution by your creditors.

After the Sequestration

After the Sequestration Order has been granted, the Master of the High Court appoints a Trustee who must take charge of your assets and liabilities. Once a Trustee is appointed we set up a meeting with the Trustee at which meeting we represent you. When meeting with the Trustee we negotiate on your behalf certain important aspects.

WHAT IS A “BENEFIT FOR CREDITORS” AND HOW IS IT CALCULATED?

Benefit for Creditors

In terms of the Insolvency Act, it must be “to the benefit” of your creditors if you sequestrate. This means that you have to prove to the Court that your creditors are, for as long as you are not sequestrated, prejudiced.

Traditionally judges required that concurrent creditors should, in the winding up of the estate; receive at least ten cents in the rand however it has become the norm to receive 20 cents in the rand.

Secure Creditors

The preferred creditors must be paid in full, limited to the value of their security. This means that if you have for example an immovable property in your estate of which the value is a million rand and the value of the property (as determined by a valuator) is, for example, R800,000.00, then that creditor must receive at least R800,000.00 excluding the cost of realisation such as auctioneer’s costs etc.

Unsecured Creditors

The creditors that do not hold any security must each receive a dividend of at least 20 cents in the rand.

Other requirements

Over and above these requirements, there must also be enough assets or cash in the insolvent estate to ensure that the administrative costs of the estate are paid.

Our Attorneys understands the calculation of benefit for creditors and will do it on your behalf.

WHY DON’T I SIMPLY WAIT FOR MY CREDITORS TO SEQUESTRATE ME?

Hostile sequestration Applications

Hostile sequestration Applications are normally brought against debtors who have very large estates and have hidden their assets from creditors. Such a creditor would most properly hold an insolvency inquiry against such a debtor.  Creditors are not keen to bring a “hostile” Sequestration Application, because it is normally cheaper for them to follow execution steps via the Sheriff.

Insolvency inquiry

Insolvency inquiry is a process in the insolvency law by which the insolvent, his family, auditor, employees, auditors etc. can be in interrogated to get information regarding the assets and other relevant affairs pertaining to the insolvent estate.

WHICH ARE THE THREE PROCESSES ACKNOWLEDGED IN OUR LAW BY WHICH SOMEONE CAN BE SEQUESTRATED?

3 Ways to Sequestrated

There are three easy in which you can be sequestrated.

Surrender of Estate

The first is by way of “surrender of estate”. In this process, you approach Court as the Applicant of your own sequestration. My advice is that this is an appropriate manner.

Friendly Sequestration

The second process is referred to as “friendly sequestration”. This is the process where a friend or family member brings a sequestration Application against you. Many judges take a dim view on this process because they are of the opinion that a friend is used to hide certain facts from the Courts which would not fall within the knowledge of the friend that brings the Application.

Hostile Application

The third process, what we will call in laymen’s terms a “hostile application”. Hostile sequestration is where one or more of your creditors apply to Court for your sequestration. It would without exemption appear from the Court papers that the Application is hostile because there will normally be allegations that you are dishonest, and that you are trying to hide your assets from the creditors.

Get the help you need to survive and thrive. Talk to Us 

 

icon for free consult with two people with chat boxes
icon for free consult with two people with chat boxes
icon for free consult with two people with chat boxes

The Trustee

When a trustee is appointed it becomes your relationship with that trustee. It is important to understand the trustee’s duties and responsibilities as well as what their role entails.

WHAT IS THE ROLE OF THE TRUSTEE IN MY LIFE AFTER SEQUESTRATION?

The Trustee’s Role

The trustee really does not care to be involved in your life, besides having the formalities of winding up the estate. The Trustee must realise the assets that fall in your insolvent estate. The trustee usually appoints auctioneers to sell the estate assets.

Administrative Requirements

You will be required to:

  1. Attend a meeting with the trustee
  2. Complete a questionnaire
  3. Keep your trustee updated about your contact particulars.
  4. Attend 2 meetings of creditors.
  5. Assist the trustee in winding up your estate
  6. Obtain a new tax number
  7. Send monthly income and expenditure reports

Liquidation and Distribution Account Confirmation

Please be patient as the estate is wound up. It takes time to get the proper authorization from the Master of the High Court to sell assets. The wind up of the estate can take a year to 18 months on average.

Trustee Report

For Rehabilitation, the trustee will provide a report about your cooperation during the winding up of your estate. The court will consider the trustee’s recommendation regarding your rehabilitation.

MY RELATIONSHIP WITH THE TRUSTEE?

Give your trustee your full cooperation. He/she is appointed by the court process and reports back to the Master. The Trustee must obtain the highest possible return for the body of creditors from the wind up of the estate.

 

icon for free consult with two people with chat boxes
icon for free consult with two people with chat boxes
icon for free consult with two people with chat boxes

The Trustee

When a trustee is appointed it becomes your relationship with that trustee. It is important to understand the trustee’s duties and responsibilities as well as what their role entails.

WHAT IS THE ROLE OF THE TRUSTEE IN MY LIFE AFTER SEQUESTRATION?

The Trustee’s Role

The trustee really does not care to be involved in your life, besides having the formalities of winding up the estate. The Trustee must realise the assets that fall in your insolvent estate. The trustee usually appoints auctioneers to sell the estate assets.

Administrative Requirements

You will be required to:

  1. Attend a meeting with the trustee
  2. Complete a questionnaire
  3. Keep your trustee updated about your contact particulars.
  4. Attend 2 meetings of creditors.
  5. Assist the trustee in winding up your estate
  6. Obtain a new tax number
  7. Send monthly income and expenditure reports

Liquidation and Distribution Account Confirmation

Please be patient as the estate is wound up. It takes time to get the proper authorization from the Master of the High Court to sell assets. The wind up of the estate can take a year to 18 months on average.

Trustee Report

For Rehabilitation, the trustee will provide a report about your cooperation during the winding up of your estate. The court will consider the trustee’s recommendation regarding your rehabilitation.

MY RELATIONSHIP WITH THE TRUSTEE?

Give your trustee your full cooperation. He/she is appointed by the court process and reports back to the Master. The Trustee must obtain the highest possible return for the body of creditors from the wind up of the estate.

 

icon for free consult with two people with chat boxes
icon for free consult with two people with chat boxes
icon for free consult with two people with chat boxes

about your assets

Understand the difference in what happens to your assets when it comes to sequestration.

CAN “THEY” TAKE MY SALARY?

No, creditors are not allowed to attach your salary, however, you are required to file an income and expenditure report for about 6 months. The surplus on your monthly budget might vest in your insolvent estate if it is too large. The more the surplus, the more likely it is to be attached.

During the process

During the process, you are protected against execution by your creditors unless you have left it so late that we can’t timorously place the prescribed publications in the Government Gazette which would stop execution by your creditors.

After the Sequestration

After the Sequestration Order has been granted, the Master of the High Court appoints a Trustee who must take charge of your assets and liabilities. Once a Trustee is appointed we set up a meeting with the Trustee at which meeting we represent you. When meeting with the Trustee we negotiate on your behalf certain important aspects.

WILL I LOSE MY FURNITURE?

No, household furniture is usually excluded from the sale of assets. It is up to the trustee to decide if the goods are necessities for the insolvent and his/her household. If so, it can be released by the trustee.

Worst case scenario

The absolute worst-case scenario is that your furniture is appraised, and you have to buy it back from your Insolvent Estate at a forced sale value. However, if the furniture has a high second-hand value, it might be considered part of the insolvent estate’s assets if there is no other benefit for the creditors.

You might be asked to provide a list of household goods that belong to you. It depends on if your Trustee requires such a list or not.

CAN “THEY” TAKE MY PENSION?

No, your pension or provident fund does not vest in your insolvent estate.

CAN “THEY” TAKE MY TOOLS OF TRADE?

No, tools of the trade do not form part of the insolvent estate.

 

Tools of trade Examples are:

Singer – Music equipment

Painter – Canvas, paint and paintbrushes

Handyman – Screwdrivers, drills and other equipment

Chef – Knives, pots and pans

 

WILL THEY TAKE MY WIFE’S JEWELLERY?

Normally jewellery would not be attached unless it is very expensive or was bought in an attempt to avoid paying creditors.

HOW LONG WILL I BE ABLE TO KEEP MY CAR?

The short answer is that you will keep your car until shortly after sequestration.

Once we have placed an advertisement in the Government Gazette in which you give notice that you intend to sequestrate, all execution steps against you stop. Once you have been sequestrated and the trustee has been appointed, the creditors would normally want their assets back immediately.

We have over many years in thousands of cases only a few times had a situation where a banking institution approach the court before the sequestration order was granted and asked the Court for an order in terms whereof they take possession of the vehicle simply to keep it safe.

WHAT HAPPENS TO MY INSURANCE POLICIES?

1. Life policies older than 3 years are protected.

2. Personal injury payouts are protected.

3. Retirement annuities that payout after your rehabilitation, are protected.

4. If a policy is not protected, you might be able to cede it to a 3rd party, thereby protecting it.

CAN I PUT ALL MY ASSETS IN TRUST?

Here is the options

Putting assets into a trust can be done by:

  • Donating to the trust or
  • Donations over R100k/per year is taxed at 20%.
  • Purchasing the assets.
  • Credit, Cash or Loans may be used

It furthermore depends on who owns what and if legal actions were started against you or by you.

Restrictions on the transfer of assets

  1. If the assets have been attached, you can not sell or transfer the attached assets.
  2. If the assets are financed, the financing should be settled before the transfer or the loan should be transferred to the new owner
  3. If your liabilities exceed your assets and there are insolvency litigation steps issued against you, transfer of assets may become problematic.
  4. If a creditor has a bond or other type of security over the asset, you will need the consent of the titleholder to transfer the asset.

Talk to us about trusts registration

Why choose us?

Our Insolvency Attorneys are the best in the business when it comes to answering your questions, so don't hesitate to contact us

about your assets

Understand the difference in what happens to your assets when it comes to sequestration.

CAN “THEY” TAKE MY SALARY?

No, creditors are not allowed to attach your salary, however, you are required to file an income and expenditure report for about 6 months. The surplus on your monthly budget might vest in your insolvent estate if it is too large. The more the surplus, the more likely it is to be attached.

During the process

During the process, you are protected against execution by your creditors unless you have left it so late that we can’t timorously place the prescribed publications in the Government Gazette which would stop execution by your creditors.

After the Sequestration

After the Sequestration Order has been granted, the Master of the High Court appoints a Trustee who must take charge of your assets and liabilities. Once a Trustee is appointed we set up a meeting with the Trustee at which meeting we represent you. When meeting with the Trustee we negotiate on your behalf certain important aspects.

WILL I LOSE MY FURNITURE?

No, household furniture is usually excluded from the sale of assets. It is up to the trustee to decide if the goods are necessities for the insolvent and his/her household. If so, it can be released by the trustee.

Worst case scenario

The absolute worst-case scenario is that your furniture is appraised, and you have to buy it back from your Insolvent Estate at a forced sale value. However, if the furniture has a high second-hand value, it might be considered part of the insolvent estate’s assets if there is no other benefit for the creditors.

You might be asked to provide a list of household goods that belong to you. It depends on if your Trustee requires such a list or not.

CAN “THEY” TAKE MY PENSION?

No, your pension or provident fund does not vest in your insolvent estate.

CAN “THEY” TAKE MY TOOLS OF TRADE?

No, tools of the trade do not form part of the insolvent estate.

 

Tools of trade Examples are:

Singer – Music equipment

Painter – Canvas, paint and paintbrushes

Handyman – Screwdrivers, drills and other equipment

Chef – Knives, pots and pans

 

WILL THEY TAKE MY WIFE’S JEWELLERY?

Normally jewellery would not be attached unless it is very expensive or was bought in an attempt to avoid paying creditors.

HOW LONG WILL I BE ABLE TO KEEP MY CAR?

The short answer is that you will keep your car until shortly after sequestration.

Once we have placed an advertisement in the Government Gazette in which you give notice that you intend to sequestrate, all execution steps against you stop. Once you have been sequestrated and the trustee has been appointed, the creditors would normally want their assets back immediately.

We have over many years in thousands of cases only a few times had a situation where a banking institution approach the court before the sequestration order was granted and asked the Court for an order in terms whereof they take possession of the vehicle simply to keep it safe.

WHAT HAPPENS TO MY INSURANCE POLICIES?

1. Life policies older than 3 years are protected.

2. Personal injury payouts are protected.

3. Retirement annuities that payout after your rehabilitation, are protected.

4. If a policy is not protected, you might be able to cede it to a 3rd party, thereby protecting it.

CAN I PUT ALL MY ASSETS IN TRUST?

Here is the options

Putting assets into a trust can be done by:

  • Donating to the trust or
  • Donations over R100k/per year is taxed at 20%.
  • Purchasing the assets.
  • Credit, Cash or Loans may be used

It furthermore depends on who owns what and if legal actions were started against you or by you.

Restrictions on the transfer of assets

  1. If the assets have been attached, you can not sell or transfer the attached assets.
  2. If the assets are financed, the financing should be settled before the transfer or the loan should be transferred to the new owner
  3. If your liabilities exceed your assets and there are insolvency litigation steps issued against you, transfer of assets may become problematic.
  4. If a creditor has a bond or other type of security over the asset, you will need the consent of the titleholder to transfer the asset.

Talk to us about trusts registration

Why choose us?

Our Insolvency Attorneys are the best in the business when it comes to answering your questions, so don't hesitate to contact us

icon for free consult with two people with chat boxes
icon for free consult with two people with chat boxes
icon for free consult with two people with chat boxes

your Rights and Obligations

Understanding your rights and obligations before, during and after sequestration is vital to a successful sequestration.

WILL I HAVE TO PAY BACK MY CREDITORS BEFORE I CAN APPLY FOR REHABILITATION?

You do not have to pay back any debt before you can rehabilitate.  Should you have incurred “new” debt after sequestration, that debt must be paid.

CAN MY EMPLOYER FIRE ME BECAUSE I AM DECLARED INSOLVENT?

Normally No, but:

If there is a condition in your employment contract that you can not be insolvent whilst in the employ of your employer, the employer can terminate your employment.

also, there are certain professions that insolvents are excluded from.

CAN “THEY” ATTACH MONEY DUE TO ME IN TERMS OF A CLAIM FOR PERSONAL INJURY OR DEFAMATION?

No. This is prohibited in terms of the Insolvency Act,

your Rights and Obligations

Understanding your rights and obligations before, during and after sequestration is vital to a successful sequestration.

WILL I HAVE TO PAY BACK MY CREDITORS BEFORE I CAN APPLY FOR REHABILITATION?

You do not have to pay back any debt before you can rehabilitate.  Should you have incurred “new” debt after sequestration, that debt must be paid.

CAN MY EMPLOYER FIRE ME BECAUSE I AM DECLARED INSOLVENT?

Normally No, but:

If there is a condition in your employment contract that you can not be insolvent whilst in the employ of your employer, the employer can terminate your employment.

also, there are certain professions that insolvents are excluded from. 

CAN “THEY” ATTACH MONEY DUE TO ME IN TERMS OF A CLAIM FOR PERSONAL INJURY OR DEFAMATION?

No. This is prohibited in terms of the Insolvency Act,

General Questions

General sequestration questions you might want to know.

MOST COMMON PRACTICAL PROBLEMS AFTER SEQUESTRATION?

Transportation

There are a few options you can try for transportation. You won’t be creditworthy and might need to buy vehicle cash. Loan a vehicle – Ask a friend or a family member for assistance or ask your employer for a company car.

Accommodation

Some landlords require credit checks. You might need to ask a friend/family to sign a lease for you.

Income

Start a business, Seek extra employment.

Sanity

There are many struggles in a person’s lifetime. Feeling like a failure, regret or holding on for too long are some of the personal struggles I have seen my clients face.

“Any hardships are opportunities to learn and grow.”

CAN I BE “TOO POOR” TO SEQUESTRATE?

Yes indeed. There must be a “benefit” for creditor before the court will grant a sequestration order.

WHAT ABOUT MY GOOD NAME?

Judgements as well as the sequestration will be listed on the credit bureaus until you are rehabilitated.

Once you are rehabilitated, credit bureaus are obliged to; Remove adverse information of which the cause of action arose before your sequestration.

Cause of action

  • The reason the debt exists
  • Date a surety agreement was signed or
  • Date a cellphone contract was taken outline
WILL MY APPLICATION FOR SEQUESTRATION SUCCEED?

We specialize in assisting clients through the tough decisions that they may face in their lifetimes. From practical and theoretical solutions to your situation, to handling your court matter, we do it all.

We try and make the process as easy as possible and as least confusing and frustrating as possible for our clients. All our personél have been in the industry for years and they are efficient in completing legal work.

 

Come and consult with us to find out

  1. If you will qualify and
  2. How much it will cost.

Please note: We give a free consultation to consult, determine a plan of action, and provide a quote for services. The quotation varies according to your unique situation.

General Questions

General sequestration questions you might want to know.

MOST COMMON PRACTICAL PROBLEMS AFTER SEQUESTRATION?

Transportation

There are a few options you can try for transportation. You won’t be creditworthy and might need to buy vehicle cash. Loan a vehicle – Ask a friend or a family member for assistance or ask your employer for a company car.

Accommodation

Some landlords require credit checks. You might need to ask a friend/family to sign a lease for you.

Income

Start a business, Seek extra employment.

Sanity

There are many struggles in a person’s lifetime. Feeling like a failure, regret or holding on for too long are some of the personal struggles I have seen my clients face.

“Any hardships are opportunities to learn and grow.”

CAN I BE “TOO POOR” TO SEQUESTRATE?

Yes indeed. There must be a “benefit” for creditor before the court will grant a sequestration order.

WHAT ABOUT MY GOOD NAME?

Judgements as well as the sequestration will be listed on the credit bureaus until you are rehabilitated.

Once you are rehabilitated, credit bureaus are obliged to; Remove adverse information of which the cause of action arose before your sequestration.

Cause of action

  • The reason the debt exists
  • Date a surety agreement was signed or
  • Date a cellphone contract was taken outline
WILL MY APPLICATION FOR SEQUESTRATION SUCCEED?

We specialize in assisting clients through the tough decisions that they may face in their lifetimes. From practical and theoretical solutions to your situation, to handling your court matter, we do it all.

We try and make the process as easy as possible and as least confusing and frustrating as possible for our clients. All our personél have been in the industry for years and they are efficient in completing legal work.

 

Come and consult with us to find out

  1. If you will qualify and
  2. How much it will cost.

Please note: We give a free consultation to consult, determine a plan of action, and provide a quote for services. The quotation varies according to your unique situation.

more general Questions

WHAT DO I TELL MY CREDITORS?

Banks & recovery agents

Usually gets referred to a call centre. You can Ignore/refer them to us when we start your Sequestration process. Will eventually get referred to an attorney for collection. The collections attorney might issue a claim against your insolvent estate

Suppliers

Few questions you will have to answer. Do you need the supplier or can you obtain materials at a different supplier for future purposes?

  • vendor listings?
  • career change?

 Landlords

The landlord has a landlords hypothec over property, inside the rental property for rental arrears. The landlord must first obtain a court order or perfect his hypothec which is very quick. He/She must then lock the premises or take control over the assets in the property.

  • consider the remainder of the lease agreement
  • negotiate lower rates/move premise

Personal creditors

It depends on the situation. Please consider if they have security in the form of a notarial bond or hypothec and attitude towards you and vice versa.

Family creditors

This is between you and the family member.

 

We’ll Deal with Creditors on Your Behalf

WILL I BE ABLE TO OPEN A BANK ACCOUNT AFTER MY SEQUESTRATION?

Yes indeed.

You may open a cheque or saving account.

  • No overdraft facilities, unless your sequestration has been disclosed to the credit giver.

Please note:

Open a bank account at a bank where you don’t owe money. Usually, credit is only given after rehabilitation

CAN I START A NEW BUSINESS WHILE I AM INSOLVENT?

If you want to start a business in your personal capacity, then you need the permission of the trustee.

If you start a company, you can’t be director, but you can be employed by the company as executive for example.

Please note:

You are allowed to pursue any career.

icon for free consult with two people with chat boxes
icon for free consult with two people with chat boxes
icon for free consult with two people with chat boxes

more general Questions

WHAT DO I TELL MY CREDITORS?

Banks & recovery agents

Usually gets referred to a call centre. You can Ignore/refer them to us when we start your Sequestration process. Will eventually get referred to an attorney for collection. The collections attorney might issue a claim against your insolvent estate

Suppliers

Few questions you will have to answer. Do you need the supplier or can you obtain materials at a different supplier for future purposes?

  • vendor listings?
  • career change?

 Landlords

The landlord has a landlords hypothec over property, inside the rental property for rental arrears. The landlord must first obtain a court order or perfect his hypothec which is very quick. He/She must then lock the premises or take control over the assets in the property.

  • consider the remainder of the lease agreement
  • negotiate lower rates/move premise

Personal creditors

It depends on the situation. Please consider if they have security in the form of a notarial bond or hypothec and attitude towards you and vice versa.

Family creditors

This is between you and the family member.

 

We’ll Deal with Creditors on Your Behalf

WILL I BE ABLE TO OPEN A BANK ACCOUNT AFTER MY SEQUESTRATION?

Yes indeed.

You may open a cheque or saving account.

  • No overdraft facilities, unless your sequestration has been disclosed to the credit giver.

Please note:

Open a bank account at a bank where you don’t owe money. Usually, credit is only given after rehabilitation

CAN I START A NEW BUSINESS WHILE I AM INSOLVENT?

If you want to start a business in your personal capacity, then you need the permission of the trustee.

If you start a company, you can’t be a director, but you can be employed by the company as an executive for example.

Please note:

You are allowed to pursue any career.

Question not answered?

Want to learn more facts and truths about sequestration. Write down your question and We’ll tell you everything you need to know!

Liquidation Attorneys Logo

Advice on all aspects of voluntary Sequestration

To move on is a very hard decision to make. Our expert legal team will talk through your situation to help you understand your options for moving forward.

We are happy to provide a free consultation on how we can best help. We will help you when you need it most just click on the button below to get the advice you need.

Liquidation Attorneys Logo

Advice on all aspects of voluntary Sequestration

To move on is a very hard decision to make. Our expert legal team will talk through your situation to help you understand your options for moving forward. We are happy to provide a free consultation on how we can best help. We will help you when you need it most just click on the button below to get the advice you need.

About Breyten Potgieter

Breyten Potgieter is one of South Africa's leading insolvency attorneys. Get the right advice for you and your business. Know your option when it comes to Voluntary Liquidation.

When things get tough, you don’t have to face them alone. Our team has helped thousands of people to get out of debt, and back on their feet, with over 12 years of experience in liquidations and company registrations, we are the professionals you need to get you taken care of.

About Breyten Potgieter

Breyten Potgieter is one of South Africa's leading insolvency attorneys. Get the right advice for you and your business. Know your option when it comes to Voluntary Liquidation.

When things get tough, you don’t have to face them alone. Our team has helped thousands of people to get out of debt, and back on their feet, with over 12 years of experience in liquidations and company registrations, we are the professionals you need to get you taken care of.