Sequestration - Voluntary Surrender


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Sequestrations of persons in their personal capacity. This is a way to get rid of all your debt and to start over again. Persons under debt review can also make us of this process. We will explain the whole process in detail during the consultation.

Benefits of Sequestrations:
  • Get rid of all your debt and start over
  • You do not have to appear in court at all
  • You no longer have to communicate with your creditors.Your creditors will have to call us.
  • Your salary is safe and all garnishing orders are stopped
  • Once the application is started sales in execution by creditors are stopped
  • Once the the application is granted action taken by creditors is stopped

Get detailed information regarding your debt options. We will assist you to make an informed decision.

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F.A.Q - Sequestration


What do you want your clients to know?

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Will I really be debt free?

Yes. All debts and creditors claims, prior to date of sequestration, vest in the insolvent estate and regarded as settled at date of rehabilitation.  

Will I lose my pension?

No. Section 23(5) read with 23(9) & Section 23(7) protects your income together with any pension benefits that you may receive.

Many of my creditors have already started legal action.

Sections 20(1)(b) stops all legal action by or against the insolvent in terms of the insolvency act.

Creditors are phoning me day and night. They say they wont stop until I paid my debt.

During the application for voluntary sequestration, you refer all creditors to us and we will correspond and deal with them.  

What is sequestration?

Sequestration is the process of declaring yourself insolvent/bankrupt (voluntary surrender of your estate) a High Court application under the Insolvency Act. You can apply for SEQUESTRATION in the following instances:

  • A natural person’s liabilities (debt) exceeds their assets
  • Judgement has been obtained on your assets
  • The client has shortfalls on assets after repossession
  • The client cannot service the debt monthly and declare to the creditors that installments can’t be met, this is an act of insolvency

What are the benifits of sequestration?

  • Get rid of all your debt and start over
  • You do not have to appear in court at all
  • You no longer have to communicate with your creditors
  • Your salary is safe and all garnishing orders are stopped
  • Once the application is started sales in execution by creditors are stopped
  • Once the the application is granted action taken by creditors is stopped

What are the negatives of sequestration?

  • Your assets will vest in the insolvent estate.
  • You cannot practice as an Director, Liquidator, Executor, Sheriff, Attorney, Auditor, Estate Agent or Quantity Surveyor. 
  • You cannot take on new debt.

What are the effects of sequestration?

The effect of a Voluntary Sequestration Court Order is that creditors must claim from the separate insolvent estate / surrendered estate. Creditors can not claim any money from you as their individual execution steps are stopped.

The trustee takes control of the entire estate and executes the administrative tasks. This process creates a concursus creditorium whereby the individual creditor’s actions stay and all creditors are handled by an orderly collective collection process administrated by the trustee

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