What is Sequestration?
Voluntary sequestration is the voluntary surrendering of your estate (financial affairs) to the Master of the High Court under the governance of the Insolvency Act 24 of 1936.
It is an application brought in the High Court of South African, by an attorney in cooperation with an advocate on behalf of the debtor which ultimately allows the debtor (the applicant) to have up to 80% of his debt written off, as a final resort to escape insurmountable debt accrued through circumstance beyond his/her control.
Sequestration is thus the process by which a debtor who has become insolvent (someone who’s financial liabilities exceeds that of his/her income) can obtain the legal status of Insolvent in order to enjoy the benefits of the status.
The debtor is relieved from further obligation to pay his/her creditors as stipulated by the original creditor’s agreement, and the creditor’s agreement and claims are brought to a close once they have received their benefit from the insolvent estate.
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