Affordable Sequestration Lawyers: Dealing with the Cost of Debt
The first step towards becoming completely debt-free is to seek the legal guidance from our affordable sequestration lawyers. Yes, the voluntary surrendering of your estate can be expensive if you do not look out for the pitfalls, but it can also be an exceptionally affordable means for dealing with mountains of debt.
How Do You Pay the Costs of Voluntary Sequestration?
One of the requirements for applying to be declared bankrupt is that you must have sufficient assets to ensure the sale thereof on auction can provide for enough money to cover the cost of the lawyers, the court-appointed curator, administration of the process, and the minimum benefits of at least 20 cents out of the rand for each of the creditor claims. With our lawyers asking affordable rates and the cost payable from the proceeds of sale, voluntary sequestration is more affordable than one might think.
Once the notice of your intention to surrender your estate has been published in the Government Gazette and a relevant newspaper, our attorneys also deliver copies of the notice to each of the creditors, the Master, and SARS. From that moment on, you are not allowed to make any payments to creditors as to prevent one being advantaged over the others. They have to wait for the court process to be completed, and the curator oversees the distribution of benefits to the creditors.
What it means is that you will almost immediately have funds available to pay for sequestration costs as well. All interest on the debt is frozen and all legal action is stayed. Garnishee orders on your salary are cancelled. Do not take it as a payment holiday. Rather use the money towards paying for the sequestration and saving up to start fresh.
Why Not Just Leave the Debt?
Judgments against your name stay in effect for 30 years unless the debts are paid in full. To qualify for bankruptcy proceedings, you must be truly insolvent. This means your liabilities must exceed your assets, and you must be unable to pay the debts in full and when due.
With the help of our lawyers, the voluntary surrendering of your estate makes it more affordable to pay the debt off. For one, up to 80% of the debt is written off, as the creditors must receive 20 cents out of the rand. This means 80 cents out of the rand are written off. If there is a shortfall after sale of assets, you must pay such in a lump sum or through down payments. With no additional interest, it is more affordable to pay off than an arrangement with debt collectors where you keep paying the debt, interest, and legal administration fees. Compare the four years of sequestration with that of 30 years that judgments stay against your name, and it makes sense to address the debt through the voluntary surrendering of your estate.
Debt does not disappear, unless you take active steps to address the burden. Our affordable sequestration lawyers are here to help you become debt-free. Get in touch for more information.
Disclaimer: This article is for information purposes only and does not constitute legal advice. Call on our attorneys for legal advice, rather than relying on the information herein to make any decisions. The information is relevant as at the date of publishing.