Movable Property:
This includes furniture and any movable assets that have already paid in full (e.g., vehicles, trailers, caravans, jet-skis, etc.). Even though your furniture will not be forfeited, the Insolvency Act necessitates that an inventory of furniture must be provided and listed on the court documents. The quantity of furniture that will be listed should correspond to your Contribution Amount / Sequestration Costs.
Advantages:
- Upon the completion of the sequestration process, you will become debt-free.
- A legal representative will attend the High Court on your behalf, meaning there is no requirement for you to attend.
- Your movable property, including furniture, will not be seized.
- Creditors cannot claim your salary, and any garnishee orders related to your salary will be revoked upon the grant of the sequestration order (court order).
Disadvantages:
- Throughout your sequestration duration, you will not be permitted to acquire additional credit or take out loans.
- Your name will be added to the credit bureau’s as being sequestrated.
- As a sequestrated individual, you will not be eligible to serve as a company director or be a member of a close corporation.
Contribution Amount:
Your monthly payments will be remitted via EFT to the Attorneys secure and safe Trust Account. if you owe R100,000.00, the Contribution amount will be roughly 20% of your total debt, which amount can be paid in installments over a period of 25 months or if possible earlier. Earlier settlement of the amount will be a huge benefit towards your rehabilitation period.
The Legal Process:
- An application will be made by your legal representative in the High Court and supported by way of affidavits. You therefore not need to attend court.
- Once your application is granted, a trustee shall be designated to manage your estate, overseeing negotiations with your creditors and the general administration of your estate.
How Long Does The Process Take:
The process can roughly take about 6 months until your application has been successful.
What If Your Application Is Postponed:
in the unlikely event that your Application is postponed, the additional information which the court requires will be addressed and dealt with by your legal representative.
Information About The Curator:
The curator shall be appointed by the Master of the High Court to take charge of your insolvent estate. Henceforth, the curator shall be responsible for managing and concluding the administration of your estate. Subsequently, creditors may no longer contact the debtor directly, and all communication ought to be directed towards the curator. The amount that you’ve paid into the Attorney’s Trust Account will then be paid to the curators and utilized towards the creditors claims.
The South African Revenue Services (SARS):
The South African Revenue Services shall be duly informed regarding your sequestration and subsequently you will need to apply for a new tax number.
Inheritance:
This forms part of your estate and you will lose it and if the possibility is there kindly let us know to enable us to get the necessary legal advice from our lawyer.
Your Pension Fund:
Your pension fund is entirely safe. Any policies or funds regulated and governed by the Pension Act are safeguarded by the Insolvency Act. By law, the curator is strictly prohibited from handling your pension fund.
Cell Phones And Other Rental Contracts:
Your lease agreements will remain in effect despite the sequestration process, provided that you continue to uphold your payments and meet the terms of the lease. However, if you choose to include these contracts as part of your estate, the lease agreements will be terminated.
Child Maintenance:
It’s important to note that the sequestration order does not absolve you of your child maintenance obligations. Child maintenance payments must continue to be made in accordance with the court order. Arrears child maintenance can be included as one of your debts. If you encounter difficulties or are unable to meet these obligations, you must request the maintenance court to consider reducing the payment amount.
School Fees:
It’s imperative to note that any outstanding school fee payments before the sequestration order will be included as part of your estate debts. However, after the order is granted, all further school fees will be payable as normal.
Parking Ticket, Speeding Fines And License:
These items are exempt from your sequestration process. Therefore, you are still required to meet these financial obligations and make the necessary payments.
The Effect on Your Employment:
The sequestration order should not, under any circumstances, impact your employment status since it’s prohibited by law to discriminate against employees on this basis. However, certain positions, such as being a director in a company or an actuary, might be affected by the sequestration order.
Marital Status:
• IN COMMUNITY OF PROPERTY:
You and your spouse have a joint estate, which means that your spouse will also be a party to the sequestration procedure.
• OUT OF COMMUNITY OF PROPERTY
You and your spouse have separate estates, and your spouse’s sequestration is not required.
• IF YOU ARE UNDER DEBT REVIEW
If you are currently under debt review or administration, your sequestration order will terminate these applications automatically and you will not make any further payments towards these procedures, calculated from the day you elect to follow the sequestration process.