Process of Applying for Voluntary Sequestration in SA

Applying for voluntary sequestration may be the last thing on your mind, until you experience extreme financial difficulty. If such is the situation, you may want to consider filing for bankruptcy to:

  • Prevent creditors from taking further legal action against you
  • Stop the bank from foreclosing on your property, leaving you with a balance to pay after the bank has sold the property on auction
  • Prevent having to pay creditors according to debt collection agreements for several years to come as the result of high interest rates and legal fees.
  • Address the problem of an uncompromising creditor, who is not willing to accept your debt settlement offer
  • Ensure impartiality in the selling of your assets to pay off debt
  • Prevent a situation where you have to pay exuberant amounts because of an investment mistake
  • Have the possibility of a clean break from debt and gaining the chance to rebuild your financial estate

 

How to Proceed in Applying for Voluntary Sequestration

First, we must determine whether you meet the requirements for voluntary sequestration. To this end, we look at your income and expenditure, the value of your assets, and your liabilities. After a full debt analysis, we can determine whether applying for voluntary sequestration is a suitable solution for your situation.

 

Consultation for Answering Questions

You most probably have many questions regarding the process, advantages, disadvantages, and impact of filing for bankruptcy. Our attorneys discuss all the above via email communication or a personal consultation. We also provide guidance on how to structure assets in order to increase the estate value to meet the requirements, and how to buy back assets, such as furniture, firearms, etc. The timeframe involved in the process is discussed, helping you to make an informed decision.

 

Drafting of the Statement of Affairs

The document is essential for applying to be sequestrated. To this end, you can rely on our attorneys to draft it on your behalf. However, you need to supply us with the relevant information, such as:

  • A list of creditors and the amounts owed to each
  • Contact information for each of the creditors
  • What you pay to each creditor monthly
  • What is the outstanding balance for each?
  • Reason for each of the debts, such as personal loan for studies or home improvements, purchasing of household goods, overdraft facility, medical expenses, etc.
  • List security offered for each debt as relevant

 

Drafting of the Founding Statement

It is another essential document when applying for voluntary sequestration, which we also draft on your behalf. It explains the reasons for the debt situation, circumstances, and why you file for bankruptcy.

 

Signing of Relevant Documents

You need to sign the affidavit and the final statement of affairs in front of a Commissioner of Oaths.

 

Notice to Creditors

The creditors must be notified when you are applying for voluntary sequestration. We handle the process, which entails the publication of the notice and the information in the statement of affairs in the Government Gazette and relevant newspapers. Once the notice has been published, you are protected from further legal action or harassment by creditors.

 

Submission of Documentation

We submit the statement of affairs to the Master of the High Court and the Magistrate’s Office, while also ensuring that creditors and SARS are notified. We draft and submit a notice of motion to reserve space on the court roll for the hearing.

 

Submission of the Application

Our attorneys submit copies of the application to SARS and the Master of the High Court. The original application is submitted to the High Court, where an advocate represents you. You do not have to appear in court. Once the court approves the application, a curator is appointed to sell and distribute proceeds of the assets to the creditors.

The above explains what applying for voluntary sequestration entails. Get in touch for more information and legal assistance throughout the process.

 


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 to the date of publishing.

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