ADVANTAGES OF SEQUESTRATION Creditors will not be able to take further legal action against you, alleviating much of the pressure associated with being over indebted. The trustee appointed becomes an intermediary between you and your creditors, dealing with all correspondence relating to your debt. Once you are sequestrated you do not have to repay the […]
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In terms of Section 23(5) of the Insolvency Act 24 of 1936 the appointed trustee can attach any part of your salary which the trustee deems not necessary for your normal expenditure. This rarely happens. Generally, after sequestration no creditor can attach your salary whether by using a garnish order or otherwise
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In order to sequestrate and in terms of the Insolvency Act 24 of 1936 it must be proven that there will be a benefit to creditors. Initially the South African courts required that each concurrent creditor received at least 10 cents to the rand. Preferred creditors on the other hand need to be paid in […]
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A company or close corporation can be winded up voluntarily through the companies and Intellectual Property Commission (CIPC).
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The winding up proceedings by the court are governed by the Companies Act 61 of 1973, certain provisions of the Insolvency Act 24 of 1936 and the Companies Act 71 of 2008.
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Winding-up proceedings of close corporations are governed by the provisions of various South African Legislation including the Close Corporation’s Act 69 of 1984, the Companies Act 61 of 1973 and certain provisions of the Insolvency Act 24 of 1936 and finally by provisions of the Companies Act 71 of 2008. Both a solvent and insolvent […]
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There are various forms of sequestration in South African Law. By far the most popular form of sequestration for individuals is an application for the voluntary surrender of estate. Sequestration is governed by South African legislation, more specifically the Insolvency Act 24 of 1936. FORCED SEQUESTRATION A creditor of an individual can apply for forced […]
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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 […]
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Liquidation typically occurs when a company has reached a point where, for one reason or another, it has been decided that the business cannot continue. In such a case it can be considered liquidating the company. This basically means turning your assets into cash, subject to applicable legislation. Turning assets into cash is generally […]
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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. 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. The debtor is relieved […]
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