What Is The Sequestration Process In South Africa

What Is The Sequestration Process In South Africa

This comprehensive guide explores the intricate steps of the sequestration process in South Africa.

Client Assessment:

The journey starts with a meticulous evaluation of the client’s financial situation. An experienced insolvency practitioner scrupulously assesses the client’s financial circumstances, weighing the necessity of sequestration against alternative debt remedies.

Sequestration Application and Legal Proceedings:

Once the suitability of sequestration is established, the client’s attorney initiates the application process. This involves submitting necessary documentation and advertisements to the government gazette. Notably, upon filing these advertisements, the debtor is legally prohibited from making payments to creditors, marking the transition of control to the legal system.

Court Representation:

Debtors are not required to personally attend court proceedings; their attorney acts on their behalf. The court deliberates and makes a pivotal decision to either grant or dismiss the sequestration application.

Post-Approval Responsibilities:

Upon receiving sequestration approval, the debtor is obligated to allocate funds to settle outstanding debts to creditors. This payment plan spans 18 to 24 months. Should the curator deem this plan unfeasible, an auctioneer may be engaged to liquidate the debtor’s assets.

Curator’s Crucial Role

The curator plays a pivotal role in supervising the sequestration process.

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