Sequestration is a debt solution, which should not be taken lightly, as it can have serious implications on the client’s credit record.
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.
Two types of sequestration include:
This applies to debtors that do not have a business and cannot pay off debts as an individual, therefore resulting in credit providers applying to have the client’s estate sequestrated, on their own terms.
This refers to debtors who apply for sequestration on their own accord, for instances where they have large amounts of debt that will take more than 10 years to pay back.
How to apply for sequestration:
DEBT RECON debt consultants will facilitate the application process. Applications must be heard by the Magistrate’s or The High Court.