Voluntary Surrender of Estate / Sequestration


Sequestration is the process whereby an entity (creditors or a trustee) take legal possession of a natural person’s assets until a debt has been paid or other claims have been met involves the bankruptcy of a natural person. It entails the surrendering of the natural person’s estate, whereby the person applies to court to be declared insolvent


Sequestration is the process of declaring yourself insolvent/bankrupt (voluntary surrender of your estate) a High Court application under the Insolvency Act.

You can apply for SEQUESTRATION in the following instances:

  • A natural person’s liabilities (debt) exceeds their assets
  • Judgement has been obtained on your assets
  • The client has shortfalls on assets after repossession
  • The client cannot service the debt monthly and declare to the creditors that instalments can’t be met, this is an act of insolvency


Here are the advantages:

  • You can legally walk away from at least 80% of your debt
  • Judgements against you that are valid for thirty years, fall away
  • This means that once your application for sequestration has been granted your credit record will be cleared. YOU START A NEW LIFE!!!
    • You get to keep your moveable assets
    • You will have an affordable monthly repayment plan
    • You no longer need to worry about having a garnishing order placed on your salary as this is removed
  • The attorney will notify your creditors, creditors cannot demand payment form the insolvent
  • Your attorney’s appointed advocate will appear in the high court on your behalf, you don’t need to be present on the day of the hearing
  • You will start a new life, a new estate, obtain a new income tax number and ultimately regain financial stability. Once you have been rehabilitated you can apply for credit

You can now plan and achieve your new 5 year financial plan.


To bring a successful application for voluntary sequestration the client have to prove benefit to the creditors. You can’t just walk away from your debt.

Here are some examples of how you can apply for voluntary surrender of your estate:

  1. The voluntary surrender of your estate with property (if you own property), the client needs to prove firstly that the bond will be settled and secondly the benefit of 20c in the rand for all other creditors.
  2. A client who doesn’t own property can prove benefit to the creditors in the amount of 20c in the rand either by:
    • Moveable assets
    • A lump sum of cash
    • A combination of both

Contact us today and start your NEW LIFE debt free.


Clear Future Consulting (Pty) Ltd
1st Floor, Qkon Building
8 Pieter Street
Highveld Techno Park