What is rehabilitation?

Rehabilitation after sequestration is the process through which a person who previously surrendered their estate to the High Court of South Africa through sequestration, and have subsequently been declared insolvent, restores their legal status to that of solvent.

Rehabilitation thus relieves the insolvent individual of the legal implications of being insolvent and restores their ability to become a credit worthy consumer.

Rehabilitation can happen automatically in some instances (explained in more detail below) but is also a High Court application brought on behalf of the client through an attorney in cooperation with an advocate. 

We often still find a predisposed notion or misbelieve from clients that an insolvent must wait 5 to 7 years after sequestration before they will become eligible for rehabilitation regardless of the state of their sequestration affairs. This is a misperception.

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