VOLUNTARY SURRENDER
An individual can apply for the sequestration of his/her estate for the benefit of creditors. This is referred to a “voluntary surrender” of the estate and the most popular form of debt relief for an overburdened debtor.
A court may accept the surrender if the debtor proves, among other things, that his liabilities exceed his assets.
The debtor’s aim in surrendering the estate is, as a rule, to escape a financial position which has become intolerable.
Voluntary surrender was primarily designed for the benefit of creditors, and not for the relief of harassed debtors.
The court therefore considers various factors in having such an order granted including the fact that the surrender will be to the advantage of creditors.
