WHAT IS SEQUESTRATION?

1. Sequestration is defined as the surrender of an individual’s estate (financial affairs) to the High Court under the governance of the Insolvency Act 24 of 1936.
2. An individual can declare themselves insolvent, and file for sequestration if their debt has become too great and unmanageable and their liabilities exceed their assets.
3. The debtor is relieved from further obligation to pay creditors as stipulated by the original creditor’s agreement, and the creditor’s agreement and claims are brought to a close once they have received their benefit from the insolvent estate.

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