Sequestration (Personal Insolvency)
Sequestration entails removing the clients’ assets and selling them to the highest bidder, making the client inadmissible of borrowing any more funds, as well as listing the client at the credit bureaus for a period of ten years. However, the process allows the client to bring an Application of Rehabilitation five years after the date of sequestration, which can be heard by a magistrate or a judge and permission for rehabilitation must be given by a trustee.
Considering Sequestration? Speak to us first!
Often sequestration is considered as a last resort by those who are overwhelmed by their debt.
While sequestration is a form of debt solution, it should certainly not be the only option you consider.
First and foremost, it is important to realise that with sequestration, you will be losing assets, which might be valuable or even sentimental to you, to pay off debt. At OUDS, we offer debt counselling help to those who might feel that sequestration is their only answer.
Debt counselling could offer a less drastic option for those who would like to become debt free without losing assets such as your home or car.
Debt counselling provides the opportunity to bring your monthly debt repayments down by as much as 30 – 50% (but debt counsellors have been able to negotiate reductions as much as up to 60% in the past). Professional debt counsellors can negotiate lower interest rates and fees with creditors. The outcome is one affordable monthly instalment, making provision for you to cover your normal living expenses as well.
Liquidation (Business Insolvency)
When a business fails and is unable to pay its debts, it is placed into liquidation. Liquidation encompasses the process of a liquidator taking charge of the estate and selling the assets by way of public auction. If auctioning off the client’s assets does not generate enough revenue to pay off debt, credit providers will turn to personal sureties to pay the difference. If the directors or members cannot settle the outstanding debts, then they have the option to include these debts under debt review, or apply for sequestration in their personal capacity.
Oyisa United Debt Specialists is therefore committed to assisting consumers struggling to make their debt repayments and facing financial difficulties, to solve their debt problems and empower them to take back control over their financial situation.
With over 11 years of specialized experience in the debt & legal field Oyisa United Debt Specialists is committed to assisting South African consumers in financial liberation.