The sequestration process is laid out in the Insolvency Act and has very clear guidelines about formalities that needs to be adhered to before you can bring a sequestration application. All of the formalities are however handled by your Attorney.
TO GO UNDER SEQUESTRATION THE FOLLOWING NEEDS TO BE DONE:
1. Consult with an Attorney that specializes in Sequestration Applications.
This is a necessary measure to ensure that you are fully aware of the effects of sequestration, as well as the sequestration process.
2. A list of your assets and liabilities needs to be drawn up.
Please note that this is not an accounting assets versus liabilities list. This is simply the value that your assets would get on a forced sale basis. Your creditors can be rounded up to the nearest thousand.
3. A list of your household income and expenditure is useful during a consultation, but is not absolutely essential.
4. After deciding on sequestration, fill in the information forms and send it back to us.
The Sequestration Process
The sequestration process is a very involved process and can be difficult for most attorneys that do not specialize in it. Thus we encourage you to seek advice from a competent attorney that understands the process. In short the following happens: There is an advert placed in the government gazette notifying creditors of the sequestration application. There are letters sent out to all your creditors informing them of the application and lastly the matter is heard in the High Court. You however, do not need to be present at the Court proceedings.
THE SEQUESTRATION PROCESS CONSISTS OF THE FOLLOWING:
1. Advertising the motion in the government gazette and a regional newspaper.
2. A statement of debtors affairs lays for perusal for a certain amount of time.
3. Creditors letters are sent out to inform creditors of the sequestration process that will follow.
4. Court documents are filed and heard.
We take full control over the sequestration process. We understand what needs to be done.
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