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Voluntary sequestration is an application that is done to the High Court to surrender your estate (assets and liabilities) to creditors in the hands of the Master of the High Court and be declared insolvent/bankrupt.
The Master will then appoint a Trustee to take control over the entire estate, whom must realise your assets according to the Insolvency Laws of South Africa and distribute the proceeds to creditors after the administrative costs have been paid.
EFFECTS OF SEQUESTRATION
The effect of a Voluntary Sequestration Court Order is that creditors must claim from the separate insolvent estate / surrendered estate. Creditors can not claim any money from you as their individual execution steps are stopped.
The trustee takes control of the entire estate and executes the administrative tasks. This process creates a concursus creditorium whereby the individual creditor’s actions stay and all creditors are handled by an orderly collective collection process administrated by the trustee
EFFECTS OF SEQUESTRATION
The effect of a Voluntary Sequestration Court Order is that creditors must claim from the separate insolvent estate / surrendered estate. Creditors can not claim any money from you as their individual execution steps are stopped.
The trustee takes control of the entire estate and executes the administrative tasks. This process creates a concursus creditorium whereby the individual creditor’s actions stay and all creditors are handled by an orderly collective collection process administrated by the trustee
IS VOLUNTARY SEQUESTRATION FOR ME?
Factual Solvency Test
Do your liabilities exceed your assets? You need to determine for what value you can realise assets, if at all. If there is enough equity in an asset that you can sell to cover your debts, then that is what you should do. If however, you do not have any assets or equity in an asset that you can realise, then you will need to consider if your income exceeds your expenses to such a degree that you can eventually get out of debt
Commercial Solvency Test
Do your expenses exceed your income? If your expenses are more than your income, taking into account your normal monthly expenses as well as repayments to creditors, then you will fall further into the debt trap. Some sequestrate because of sureties that were signed or because their income has been reduced or they lost their employment and they can not repay creditors
IS VOLUNTARY SEQUESTRATION FOR ME?
Factual Solvency Test
Do your liabilities exceed your assets? You need to determine for what value you can realise assets, if at all. If there is enough equity in an asset that you can sell to cover your debts, then that is what you should do. If however, you do not have any assets or equity in an asset that you can realise, then you will need to consider if your income exceeds your expenses to such a degree that you can eventually get out of debt
Commercial Solvency Test
Do your expenses exceed your income? If your expenses are more than your income, taking into account your normal monthly expenses as well as repayments to creditors, then you will fall further into the debt trap. Some sequestrate because of sureties that were signed or because their income has been reduced or they lost their employment and they can not repay creditors
Frequently Asked Questions
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Frequently Asked Questions
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