Sequestration
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Phase 1
Application for sequestration
The sequestration process of Debtgrip has seventeen steps done in four phases
Applicant completes an application form Applicant completes an application form
Applicant completes an application form Applicant completes an application form
Including all financial information, assets and liabilities, including enabling the Insolvency Practitioner to properly advise the applicant on the available publications.
Evaluation of the applicant's unique situation and needs
Evaluation of the applicant's unique situation and needs
The insolvency practitioner must ensure that the applicant's estate is insolvent
Are there other debt relief options available in terms of the National Credit Act
Phase 2 - The legal process
Once it has been agreed with the applicant that sequestration is the best option for debt relief, the legal process will begin.
The applicant’s intention to apply for sequestration is published in the Government Gazette. Once the advertisement has been published, the applicant enjoys protection under Insolvency 24 of 1936, which provides, inter alia, that the applicant is prohibited from making any further payments to creditors other than salary garnishes, “garnishee orders”. of the seizure order on the employer.
A date will be obtained from the Supreme Court on which the application will be heard.
Upon completion of the application, the Insolvency Practitioner will contact the applicant and confirm the outcome of the application, whether successful or otherwise.
After the court order has been granted, the Master of the Supreme Court appoints a trustee who is responsible for looking after the financial reward of the Insolvent estate.
On the day of the court case, the applicant is represented by a lawyer. It is not necessary for the applicant to be present at the court or to attend the proceedings.
Where the court orders that certain assets be sold, an auctioneer is appointed to sell the assets and repay the proceeds to the trustee.
The applicant, now a client, pays the trustee, usually through the Insolvency Practitioner, the amount due to the creditors under the court order. The client can make arrangements with the trustee to pay this amount over a period of 18 to 24 months, interest free.
The Insolvency Practitioner draws up a statement of the applicant's interests, as well as all other relevant court documents in support of the Supreme Court application. This interest includes the following:
List of creditors with outstanding account balances. The distributions that the creditors can expect if the application is granted, provided that the norm is between R0,20c and R0,25c in the rand.
Phase 3
The period of insolvency
English Nadat die hofbevel toegestaan is, stel die Meester van die Hooggeregshof 'n kurator aan wat verantwoordelik is om na die finansiële beloning van die Insolvente boedel om te sien After the court order has been granted, the Master of the Supreme Court appoints a trustee who is responsible for looking after the financial reward of the Insolvent estate.
After the court order has been granted, the Master of the Supreme Court appoints a trustee who is responsible for looking after the financial reward of the Insolvent estate.
The applicant, now a client, pays the trustee, usually through the Insolvency Practitioner, the amount due to the creditors under the court order. The client can make arrangements with the trustee to pay this amount over a period of 18 to 24 months, interest free.
The applicant, now a client, pays the trustee, usually through the Insolvency Practitioner, the amount due to the creditors under the court order. The client can make arrangements with the trustee to pay this amount over a period of 18 to 24 months, interest free.
Where the court orders that certain assets be sold, an auctioneer is appointed to sell the assets and repay the proceeds to the trustee.
Where the court orders that certain assets be sold, an auctioneer is appointed to sell the assets and repay the proceeds to the trustee.
The trustee distributes the funds received during the respective credit hours in accordance with the provisions of the court order and regulations contained in the Insolvency Act.
The trustee distributes the funds received during the respective credit hours in accordance with the provisions of the court order and regulations contained in the Insolvency Act.
Nadat alle aspekte van die hofbevel nagekom is, reik die kurator 'n dokument uit wat aan die kliënt bevestig word. After all aspects of the court order have been complied with, the trustee issues a document which is confirmed to the client.
After all aspects of the court order have been complied with, the trustee issues a document which is confirmed to the client.
Phase 4
Rehabilitation
A client can apply for rehabilitation of insolvency once this document has been obtained from the trustee, who confirms that all aspects of the court order are complied with.
Sequestration / Bankruptcy
Frequently asked questions
- Costs between R6500 and R9500, depending on the provision in which the applicant lives. The costs will be discussed with the first consultation with the Insolvency Practitioner, which is offered free of charge to Debtgrip clients.
- Further costs are calculated according to the unique application and are discussed during the use of food
- There is a common belief that only property owners can apply for sequestration. That is not the case.
- The Insolvency Practitioner can assist the applicant with the sequestration of movable property. This donation includes household items, furniture, vehicles, caravans and others, which are paid in full and which are used for the benefit of creditors.
- The applicant need not lose any of these assets as it can be repurchased from the trustee after the consent of the court order by the Supreme Court.
- Most prosecutions are subject to a financing agreement which stipulates that the financier, the bank, retains the title documents until the vehicle debt is fully settled.
- In the case where vehicles are paid in full, they are included in the estate and sold for the benefit of the creditors, provided that the applicant can repurchase the vehicle from the Trustee at a reasonable price.
- Vehicles where there is still outstanding debt can be returned to the bank and the deficit on the account, after the bank has sold the vehicle in the open market, is included as an outstanding creditor in the estate.
- If the value of the durable amount is significantly lower than the outstanding debt, it is advisable to keep the vehicle until the date on which the court order is granted. The Trustee then sells the vehicle and the profits earned in it are used to the benefit of creditors. It is advisable to generally reduce this deficit on insolvency account and the applicant should pay less.
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