Sequestration
Debt has a legal way out.
Sequestration is a formal insolvency process, not a universal solution. The individual’s assets, liabilities, income, secured creditors and the likely advantage to creditors must first be considered.
Assessing the position
Complete and accurate figures are essential. The first task is to determine whether sequestration is legally available, practically sensible and preferable to the alternatives.
The court process
An application places the insolvent estate under collective administration. Creditors’ claims are dealt with under insolvency law rather than through a series of separate collection steps.
Consequences and alternatives
The effect on property, income, contracts and future rehabilitation should be understood before proceedings begin. Where another solution is more appropriate, that should be identified early.
This page provides general information and is not legal advice on a particular matter. The facts, documents and timing may change the appropriate course.