Voluntary sequestration is a legal process in which you seek to the court to be declared bankrupt. Your estate is turned over to the court, and a curator is appointed to oversee asset sales and distribution of benefits to creditors. You will be debt-free and ready to restore your financial estate once the process is over.
If you want to apply for sequestration, you must have enough assets to ensure that the sale of such assets benefits the creditors and pays for the sequestration process. Keep in mind that the court will only grant your application if you can demonstrate that your expenses considerably outweigh your income and your liabilities far outweigh your assets. It cannot be used as a quick fix for debt relief merely because it is more convenient for you.
Step 1: Establish Insolvency
Fill up the form we give or speak with one of our attorneys about your debt to see if you qualify for sequestration. You must detail your income and expenses, as well as your assets and obligations.
Consultation is the second step.
You will answer your questions and help clear up any uncertainties during the appointment.
Step 3 – State of the Union
You must submit a statement of affairs.
Creditors’ list
Each creditor’s contact information.
Each creditor’s postal address.
Total amount owed to each creditor.
Payments are made monthly.
The unpaid balance
The reason for each debt, such as a leasing agreement, asset finance, items acquired, cash advance, and so on.
Confirmation of security supplied for each creditor’s obligation.
Step 4 – Mission Statement
In order to apply for sequestration, you must also write a founding statement. It discusses the facts of your debt, the purpose for sequestration, some legal considerations, and the amount of debt.
Step 5: Determine the Worth of Your Assets
Sign the Statement of Affairs and the Affidavit.
We shall submit the documents to you for signature in front of a Commissioner of Oaths once the affidavit and statement of affairs have been corrected and changed.
Step 7: Inform Creditors
You will be shielded from attachment of your assets and additional legal action from creditors after the notifications are published. You will stop making payments to your creditors. The court date will also be made public.
Step 8: Submit The Statement of Affairs
Creditors, as well as the South African Revenue Services, will be notified.
Step 9 – File a Notice of Motion
Step 10 – Application Submission
Copies of the application will be made and submitted to the Master of the High Court, SARS if necessary, and the Registrar of the High Court.
Step 11: Attend a Court Hearing
The advocate will file an application for sequestration on your behalf, and if it is granted, the court will appoint a curator to oversee the sale of assets and distribution of benefits to creditors.
12th Step – Rehabilitation
You will be subject to sequestration and will be able to request for rehabilitation 12 months after the final distribution account is presented.
