Sequestration is a process (defined by the South African Insolvency Act of 1936) that allows you to have your assets liquidated in order to pay off your debt. The Insolvency Act of 1936, which defines the process for both voluntary and compulsory sequestration.
Voluntary sequestration – this occurs when you decide to declare yourself bankrupt.
Compulsory sequestration – this happens when a creditor (someone or an organisation who you owe money to) applies to the court for an order of sequestration against you.
TIP: Clear Future can assist you with Voluntary Sequestration and compulsory sequestration.
The process of sequestration in South Africa involves a number of steps, we assist you all the way.
Once sequestration proceedings have begun, a trustee is appointed to manage the process. The trustee is responsible for identifying and valuing the debtor’s assets, which may include property, vehicles, and other possessions. The trustee may also sell these assets in order to generate funds to pay off the debtor’s creditors.
The appointed trustee then becomes responsible for managing the day-to-day affairs of the debt. This includes interacting with your creditors and making payments to them as funds become available. The trustee may also negotiate with your creditors to reduce the amount owed and/or agree on a payment plan.
TIP: Clear Future can help you reduce the amount you owe to creditors.
Remember, sequestration is not a decision to be made lightly, as it can impact your financial future and it may impact your ability to obtain credit.
In conclusion, sequestration is a legal process that can be used by South Africans who are struggling with servicing their debt. While the process of sequestration can provide a way to clear your debt and start fresh, it is important to carefully consider the potential consequences and we suggest seeking professional advice to make an informed decision.
