The Weight of Insurmountable Debt
Understanding the Sequestration Process
Living with overwhelming debt is a crushing burden that affects every aspect of your life, from your mental health to your family relationships. Constant calls from creditors and the threat of legal action can be paralysing. Sequestration, while a serious step, is a legal tool designed to end this cycle and provide a definitive route to a debt-free future.
Sequestration (also known as personal insolvency) is a court-driven process that allows individuals who cannot pay their debts to legally surrender their estate. In return, creditors receive payment from available assets, and the individual gains the opportunity for a fresh start.
We Assist With:
- Initial Consultation & Financial Assessment: We conduct a detailed review of your finances to confirm you are legally insolvent and that the sequestration will offer a sufficient financial benefit to your creditors (a legal requirement).
- Publication of Notice: We publish a notice of your intention to surrender your estate in the Government Gazette and a relevant newspaper.
- Drafting the Application: We prepare a comprehensive application for the High Court, including a detailed affidavit and a full statement of your financial affairs.
- Court Application: We represent you in the High Court application for the voluntary or compulsory sequestration order.
- Appointment of a Trustee: The Master of the High Court appoints a trustee to take control of and manage your insolvent estate, to eversee estate liquidation and creditor payments.
- Realisation of Assets: The trustee sells your assets and distributes the proceeds to your creditors according to a legally determined order of preference. The shortfall of debt is legally written off.
- Rehabilitation – Apply to restore financial standing once obligations are met.
- Learn About Insolvency Law →
- Stops legal action and creditor harassment.
- Prevents wage garnishing and asset seizures.
- Clears qualifying debts after liquidation.
- Opens the path to rehabilitation and financial recovery.
- Provides peace of mind and a structured legal solution.
- Incomplete Financial Disclosure or Trying to Hide Assets: All assets and debts must be declared. Failing to disclose all your assets to the trustee is a serious criminal offence with severe consequences.
- Incurring More Debt Before Sequestrating: It is illegal to rack up debt with no intention of repaying it, and this can be viewed as fraudulent behaviour.
- Not Understanding the Full Consequences: Sequestration provides immense relief but has long-term impacts on your ability to get credit and act as a director. It’s crucial to enter the process with your eyes open.
- Choosing Sequestration over Debt Review Prematurely: For some, debt review can be a less drastic first step. We can help you assess if it’s a viable option for you.
- Incomplete Financial Disclosure – All assets and debts must be declared.
- Transferring Assets Before Filing – May be reversed by the trustee.
- Late Application for Assistance – Acting early allows more options.
- Unqualified Representation – Incorrect filings can lead to rejection.
- Ignoring Mediation Options – The Gauteng High Court directive promotes mediation before sequestration or litigation.
Mandatory Mediation Explained →
- Negotiated settlements with creditors
- Debt mediation and consolidation
- Voluntary surrender of specific assets
- Informal repayment agreements
- Learn About Mediation Services →
- Removes legal insolvency status.
- Restores right to hold assets and credit.
- Rebuilds financial credibility.
- Marks closure of sequestration proceedings.
- Learn About Rehabilitation Applications →
- Expert Guidance: We have decades of experience navigating the complexities of South African insolvency law and the High Court.
- Compassionate & Non-Judgmental: We understand the stress of financial difficulty. We provide a supportive, discreet, and completely confidential service.
- Ensuring Legal Compliance: We meticulously manage every step of the process, ensuring it is handled correctly and protecting you from legal pitfalls.
- A Path to Rehabilitation: We are a long-term partner. After the required time has passed, we can guide you through the process of applying for legal rehabilitation.
- Confidential Representation: Sensitive handling of financial distress.
- Mediation Expertise: Accredited under the Gauteng directive for debt disputes.
- Proven Legal Process: Decades of success in sequestration and rehabilitation.
- Client Care: Personalised support throughout your recovery journey.
Clarity • Compliance • Confidence
Personal Insolvency FAQs
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