Answers on Your Question of How Long Does a Sequestration Last?

Before voluntary surrendering your estate, you most probably want an answer to your question of how long does a sequestration last? The answer depends on various factors, and we thus briefly look at the circumstances that determine when you can apply for rehabilitation.

 

How Long Does a Sequestration Last if You Do Not Apply for Rehabilitation?

If you never go through court proceedings to apply for rehabilitation, then the bankruptcy stays in place for ten years, after which you are automatically rehabilitated. However, it is a long time, and during this period, you need the permission of the trustee/curator to enter into credit agreements. Your credit record shows that you are sequestrated, and you cannot fill certain government positions or be a director of a company. It thus makes sense to apply for rehabilitation as soon as it is legally possible and within your means.

 

How Long Does A Sequestration Last in General?

In most instances, it is possible to apply for rehabilitation four years after the date the court granted the provisional order for you to be sequestrated. You can apply for rehabilitation at any time after the provisional order if you have enough assets in the insolvent estate to ensure full payment of all proven claims against the estate. You can also do so if you can pay at least 50 cents of the rand to each of the creditors with claims against the insolvent estate. You can apply for rehabilitation six months after the court order for declaring you bankrupt if there are no proven claims against the estate. Finally, you can do so 12 months after confirmation of the liquidation account by the Master of the High Court, and after recommendation for such by the Master of the High Court.

 

How Long Does A Sequestration Last If You Have Committed Fraud or Another Relevant Offence?

If you have committed fraud or a related offence in terms of the surrendering of your estate or have committed an offense during the period of bankruptcy, such as holding a director position in a company, you will have to wait longer than the general period before you can apply for rehabilitation. This also applies where you have been sequestrated before. The circumstances are best discussed with our insolvency law attorneys. Get in touch with our attorneys to help you file for bankruptcy or to apply for financial rehabilitation.

 


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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