Sequestration

Too much debt? Sequestrate! Sequestration is the only process in south africa for an individual to write off debt.Sequestration is the legal term for personal also trust bankruptcy. It is an effective way of dealing with debts you cannot repay.

Successful sequestration proceedings results in an individual being freed from overwhelming debt obligations, which in turn, enables one to make a “fresh” financial start. This is however subject to certain conditions, which amongst other things, require that the proceeds obtained from the sale of personal assets, are fairly distributed, by an appointed curator, between all existing creditors.

Insolvency is an umbrella term for voluntary surrender, sequestration and liquidation. Individuals sequestrate and entities (Close Corporations, Companies, Trusts) liquidate. Voluntary surrender and forced sequestration is basically the same thing – it just depends on who brings the application.

SEQUESTRATION PROCESS
The sequestration process involves a Court Application. Where there is an Application there must be an Applicant. The Applicant is either yourself for your own sequestration (voluntary surrender) or the Applicant is a creditor of yours (either a friendly or aggressive creditor). The Applications are similar and although there are some different requirements for each, the effect is the same.