Help to Get Out of Debt Through Voluntary Sequestration

If your liabilities far exceed your assets and you cannot pay your debts, it is your responsibility to take action. Do not wait for the creditors to take legal action against you. First, seek help to get out of debt. Unless you somehow get a lump sum or a family friend lends you the money to cover all your debts, you need professional help to get out of debt.

If you are still solvent and can make payments to creditors, check where you can save on monthly expenses. Use the money towards paying the creditors. Refrain from only paying off one or two creditors, because it can be used against you, should you later apply for voluntary sequestration. Rather pay extra on every account. With the extra payments, you end up with lower interest payable and the debt becomes more manageable.

However, if you have passed the point of no return and nothing you save on monthly expenses will enable you to pay even the minimum amounts owed, seek help to get out of debt. Do not attempt to negotiate with creditors without legal assistance; in fact, this can be seen as an act of insolvency and may allow creditors to bring a compulsory sequestration application against you. Many of the creditors will seek immediate judgments against you rather than applying for your sequestration. You will end up with additional legal fees to pay and, at the end of the day, can end up without any assets and a mountain of debt.

The best solution is to approach insolvency attorneys for guidance and assistance to determine the best way to get out of debt. If you qualify for voluntary sequestration and decide to follow this route to get out of debt, the attorneys will help you through the process. They will explain the advantages, disadvantages, implications, and the process in detail.

Once you are ready and agree that voluntary sequestration is the solution, they will, on your behalf, apply to the court for your voluntary sequestration. Once the notice of your intention to sequestrate is published, the creditors must communicate with the attorneys. They cannot take any further legal action against you. You cease all payments to the creditors. They must wait for the court’s decision. The court awards the final sequestration order and a curator is appointed to oversee the sale of your assets. The proceeds go towards payment of the sequestration costs, legal fees, and the minimum benefit required to the creditors.

With voluntary sequestration, as much as 80% of the debt can be written off. As such, the process can help you get out of debt relatively quickly. You do not have to appear in court. Once sequestrated, you are free of debt. You can start afresh and rebuild your financial estate. You will remain sequestrated until you have been rehabilitated. The insolvency attorneys will also explain the timeframe for rehabilitation.

Seek expert help to get out of debt. Call our attorneys for an assessment and guidance.


Disclaimer: This article is for informational purposes only and does not constitute legal advice. Call 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 – April 2019.

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