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Sequestration . Liquidation . Voluntary Surrender

Debt Relief through Sequestration/Liquidation is often considered one of the most prevalent, and in many instances, the optimal or sometimes the sole approach to alleviate the weight of financial obligations.

BENEFITS OF SEQUESTRATION / LIQUIDATION

  1. Complete Debt Discharge: All your debts will be discharged, and your salary along with other income will remain unaffected.
  2. Temporary Reprieve in Housing Costs: Enjoy a period of approximately 5 months or even longer without the obligation to pay your bond, allowing you to stay in your house.
  3. Cessation of Creditor Payments: Once the sequestration process commences, you are relieved from the responsibility of making payments to any of your creditors.
  4. Confidentiality with Employers: Your employer remains unaffected as only your creditors are informed of the sequestration process; your employer need not be notified.
  5. Third-Party Communication: We take charge of communicating with your creditors on your behalf, eliminating the need for you to engage with them directly.
  6. Court Appearance Waiver: You won’t be required to attend court on the application date, simplifying the process for you.
  7. Protection of Salary: Your salary is safeguarded from attachment or garnishment, and existing garnishee orders are automatically canceled.
  8. Legal Action Halt: Upon the publication of your Notice of Surrender, all legal actions are halted, and no attachments can take place.
  9. Rehabilitation Option: After 12 to 48 months, you may apply for a Rehabilitation Order, provided the insolvency state is confirmed by the master. Once approved, your credit status will be restored, and you will be declared creditworthy.

VOLUNTARY SEQUESTRATION / LIQUIDATION EXPLAINED

Voluntary Sequestration, also known as Voluntary Surrender, involves a court application wherein a Trustee, appointed by the Master of the High Court, manages the sale of your assets. The proceeds are then distributed among your creditors. Following sequestration, your debts are considered written off. After rehabilitation, creditors are no longer entitled to demand payment from you, as their rights are transferred to the Trustee.
Embracing voluntary sequestration allows you to reclaim a debt-free, normal financial life. While it is beneficial to own property, whether immovable or movable, for potential realization to benefit creditors, it is not mandatory.
There is no need for guilt in choosing this path, as it was never your intention to incur debt without honoring your obligations. Life unfolds unexpectedly, and not every aspect is within your control.
The COVID-19 pandemic has demonstrated how countless individuals and businesses faced insurmountable challenges. Acknowledging the difficult circumstances, voluntary sequestration can provide a path towards financial recovery.
Remember, there is a light at the end of the tunnel. Procrastination may not be in your best interest—act before it’s too late.
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