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Application for sequestration
The sequestration process of Debtgrip has seventeen steps done in four phases
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.
The period of insolvency
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.
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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