Sequestrations in South Africa: Online Application to Determine if You Qualify
With the national state of disaster in place and the subsequent lockdown period, many individuals have lost their permanent jobs. Self-employed people have also been hard-hit because of the inability to trade, while many have lost large client contracts during the period. Several property owners are unable to pay the bonds on their properties because tenants have defaulted for several months. A solution is available. We provide an online sequestration application form to help individuals determine whether or not they qualify for voluntary sequestration.
Individuals can complete the sequestration application form online or download it in PDF format for offline completion. The completion of the online or downloaded sequestration form does not obligate the applicant to proceed with the voluntary surrendering of their estate.
The Individual Benefits Include Getting A Free:
- Assessment of their financial affairs.
- Quotation on the cost of sequestration in South Africa.
- One consultation (free).
Why the Need to Qualify?
Sequestrations in South Africa allow for the individuals to get rid of crippling debt when they are no longer able to pay the debt when due and when their liabilities exceed their assets. However, such sequestrations are only allowed if the creditors can receive their minimum required benefits and if the individuals are truly insolvent. In addition, the sequestration costs must be covered by the process.
An individual thus does not automatically qualify to voluntarily surrender their estate. It is not a payment holiday or get-out-of-debt free ticket. It is, however, a legal means to get rid of up to 80% of debt within a short period and an opportunity to start fresh without mountains of debt piling up.
How Do Voluntary Sequestrations in South Africa Work?
The insolvent party applies to court to have their financial estate surrendered. They thus apply to be declared bankrupt. The creditors are notified of the intention to voluntarily sequestrate and have a period in which to examine the relevant documentation.
They can oppose the application. If unopposed, the court declares the applicant insolvent and appoints a trustee/curator to oversee the sale of assets and distribution of the proceeds to the creditors.
The insolvent party must attend the relevant meetings with the trustee and provide the necessary information to ensure fair and fast distribution of proceeds.
The creditors receive their benefits and if no further claims are applicable against the estate and all requirements met, the individual can apply for the rehabilitation of their financial estate.
Specific time requirements must also be met. Once the rehabilitation has been done, the individual is no longer under sequestration and regains full control over their financial estate.
If you want to know whether you qualify according to the requirements for sequestrations in South Africa, complete the online application form.
What is Asked in The Online Sequestration Application Form?
You will need to provide details of the creditors. This includes the amounts for each loan or credit, the amounts still outstanding, monthly payments due, interest payable, and when you have made the last payments.
You will also be asked to complete your gross income, nett income, and expenses. You will need to list your vehicles with details regarding the model, purchase amount, amount outstanding, year of purchase, etc.
Other Information of Importance Includes:
- List of immovable assets, such as properties – bond amount, amount outstanding, monthly payments, interest, amount in arrears, etc.
- List of immovable assets encumbered by loans or credit, the amounts outstanding, value, etc.
- You will be asked to provide your full names and surname, whether married in community or out of community of property, whether both you and your spouse apply for voluntary surrendering, and your employment details.
Confidentiality of The Online Sequestration Application Form
The information is treated as confidential and is not shared with any party.
Statement of Affairs and Affidavit
For voluntary sequestrations in South Africa, applicants must provide their statement of affairs and affidavits to explain the circumstances of their insolvencies. We prepare such on behalf of applicants.
To get started with the assessment, you will need to explain why you want to apply for the voluntary surrendering of your estate. To this end, we ask the same in the online sequestration application form. It also helps us to prepare your application.
For the statement of affairs, you will need information, such as the list of creditors, amounts owed, whether judgments have been taken against you for payments on which you have defaulted, the interest payable, and more. It is essential to include each of the creditors to whom you still owe money. Failure to disclose all creditors can cause your application to be opposed or to be invalid.
As such, we ask the information in the online and offline sequestration application forms as well. Completing the information is thus not a waste of time, but rather a way to determine the exact state of your financial affairs.
Can People Under Debt Review Qualify for Voluntary Sequestrations in South Africa?
Yes. With the economic lockdown, many people have not been able to work or have only received a part of their monthly incomes. This has made it difficult for them to make the monthly consolidated payments as required when under debt review.
If you are one of the people and the creditors have threatened with the cancellation of the debt review or are on the brink of taking legal action against you, complete the online or offline application form to determine whether you still qualify.
Once the notice of your intention to voluntarily sequestrate has been published according to the requirements of the Insolvency Act, you are protected against legal action from the creditors. Indeed, you must stop payments to creditors immediately as to prevent one creditor to benefit to the disadvantage of the others.
All debts and interest are frozen. All garnishee orders against your salary are cancelled and legal actions are stayed, pending the outcome of the court application for the voluntary surrendering of your estate.
You can use the money to save up for the cost of rehabilitation or to start fresh without creditor harassment. Instead of ending up with several unpaid judgments against your name, which stay in place until paid (up to 30 years), you can apply for rehabilitation as soon as the requirements are met. This means that you can regain full control over your financial affairs quicker than you may think.
What to Do First – Online Application Form
Honesty is essential when you apply for sequestration. It is important to provide as much information as possible, also when completing the online application form:
- List your monthly expenses, including rent or bond repayments, utility services, Internet access contracts, mobile phone contracts, school fees, groceries, fuel, maintenance, domestic worker and gardener salaries, medical aid, insurance premiums, and more.
- List all the creditors, their contact details, and details of each debt.
- List all unencumbered movable and immovable assets, as well as the encumbered ones with details of the obligations for each. Also list your monthly income sources and amounts.
- State your investments and policies.
Pension money, children’s assets, and personal injury claim income are excluded from sequestrations in South Africa. However, also list such to provide a clear picture. Write down how it came to the point of applying for sequestration.
Voluntary sequestrations in South Africa help insolvent individuals to regain financial control. If you believe that you qualify and want to know more, complete the online application form or download it here for a free assessment, quotation, and access to your first consultation with one of our attorneys.
Disclaimer: This article is for information purposes only and does not constitute legal advice. Call on our attorneys rather than relying on the information herein to make any decisions. The information is relevant to the date of publishing.