Advantages and Disadvantages of Sequestration

Creditors will not be able to take further legal action against the applicant, alleviating much of the pressure associated with being over indebted.
The trustee appointed becomes an intermediary between the applicant and the creditors, dealing with all correspondence relating to the applicants debt.
Once sequestrated the applicant does not have to repay the debts which the applicant had immediately before sequestration. The creditors claims now vests in the insolvent estate
After publication of the notice in the Government Gazette, it is unlawful for the sheriff to sell any property in the estate which has been attached under a writ of execution, or other similar process, unless the sheriff could not have known of the publication. The court may, however, order the sale of attached property to proceed if the value of the property does not exceed R5,000, and if it would be to the benefit of the creditors. Other civil proceedings may continue. For example, writs may still be granted.
All income earned after sequestration can be used exclusively for living expenses as the applicant does not have to pay creditors.
Publication of a notice of surrender has no effect on civil and criminal matters proceeding. Attachment of goods can proceed although the actual sale in execution is stayed.

Losing control of assets, such as a home and car, is a possibility as assets will vest in the insolvent estate.
The sequestration will be listed on the credit bureaus which affects creditworthiness and ability to incur further debt.
The sequestrated applicant will not be able to act as the director of a company.
Certain professions, such as attorneys, sheriff’s accountants and estate agents, exclude sequestrated individuals.
The consequences of sequestration last until rehabilitation